Opening Bell - Morning Commentary
U.S. Stocks Rally as cooler-than-expected inflation data lift sentiment; Bank of Japan rate decision to weigh on markets.
U.S. stocks rebounded on Thursday as easing inflation supported expectations for future rate cuts. The Nasdaq Composite surged 1.4% after Wednesday's tech selloff.
Micron shares rose 7% on revenue guidance of $18.70 billion for the current quarter—well above the $14.20 billion estimate—citing demand substantially exceeding supply. The results eased concerns about AI spending and lifted the semiconductor sector.
The rally followed Labour Department data showing that consumer price growth at 2.7% annually in November, lower than anticipated, boosting hopes for Federal Reserve rate cuts in 2026.
Gold traded near $4,330 per ounce, approaching records, driven by U.S. sanctions on Venezuelan oil tankers and regional military build-up. Geopolitical uncertainty and mixed
Inflation signals maintained elevated safe-haven demand.
Copper futures rose to $5.37 per pound, near multi-month highs, supported by Chinese EV growth, infrastructure investment, and AI-driven US demand. Supply disruptions at major Chilean and Peruvian mines reinforced the bullish outlook, with prices up 33.6% year over year.
The Bank of Japan is expected to raise interest rates today to a three-decade high and signal readiness for further hikes, citing confidence that sustained wage growth will keep inflation near its 2% target.
Asian markets rebounded today following a tech-driven Wall Street rally, with investors anticipating the BOJ rate hike and its potential impact on currencies and bonds.
Sentiment improved after U.S. consumer price inflation unexpectedly slowed to 2.7%, although analysts cautioned that the government shutdown distorted the data and that the data should be interpreted cautiously.
Indian rupee appreciated by 14 paise to settle at 90.24 against the US dollar, marking a second straight day of gains. The currency’s renewed strength is being underpinned by steady corporate dollar inflows and easing crude oil prices, signalling an improved supply backdrop that has allowed the rupee to regain some lost ground.
Despite the recent correction, the Nifty has so far held above the 50‑DEMA at 25,767 and the previous swing low at 25,693.
A decisive close below these supports could accelerate selling pressure, whereas on the upside, the 26,000 level is likely to remain a major hurdle.
Indian markets are poised to open moderately higher on strong global cues.