Opening Bell - Morning Commentary
AI Stocks Power Wall Street Rally as Santa Claus Rally Hopes Rise, Nifty Eyes Further Upside
U.S. equities advanced on Monday, with the S&P 500 climbing 0.88%, the Dow Jones Industrial Average adding 0.38%, and the Nasdaq Composite jumping 1.31%.
AI-related stocks—including Nvidia, Oracle, and Micron—led the broad-based rally.
The VIX - CBOE volatility index fell to its lowest level since September, signalling diminished market anxiety as investors positioned for a potential Santa Claus rally during the holiday-shortened week.
AI leader Nvidia extended its gains following a report that the company has informed Chinese clients it plans to begin shipping its second-most-advanced AI chips to China ahead of the Lunar New Year holiday in mid-February.
Spot gold reached a record high of $4,445 per ounce during early Asian trading on Tuesday, driven by expectations of rate cuts, geopolitical and economic uncertainty, and robust central bank and ETF purchases.
Silver surged alongside gold, gaining nearly 2% and reaching record highs as the precious metal has more than doubled in value during 2024. The rally reflects expectations of Federal Reserve rate cuts, a weakening dollar, and heightened safe-haven demand.
WTI crude oil rose 2% to $57.81 per barrel after the U.S. Coast Guard intercepted an oil tanker near Venezuela and Ukraine struck a Russian tanker in the Mediterranean—marking the first such incident.
Energy stocks advanced as geopolitical tensions heightened concerns about potential supply disruptions heading into 2025.
Copper futures held above $5.43 per pound, approaching five-month highs, supported by strong demand from China's electric-vehicle and energy-infrastructure sectors.
Asian equities rose alongside precious metals today as momentum buying continued ahead of the festive holidays, with investors awaiting an advanced reading on U.S. GDP expected later in the day.
The Nifty closed 206 points higher at 26,172 on Monday, marking its strongest close since December 5.
The index established a bullish higher-high, higher-low pattern on daily charts by breaching the key resistance level of 26,058.
Market breadth remained positive for the second consecutive session.
The index could extend its advance toward 26,202 and 26,330, with immediate support positioned at 26,000.
Indian markets are poised to rise further on the back of short covering on the weekly Nifty expiry day and positive global cues.