Nasdaq and S&P 500 Reach New Record Closing Highs, TCS Disappoints the Dalal Street

U.S. stocks rose during trading on Thursday, building on the gains made during Wednesday’s session. With the upward move, the Nasdaq and the S&P 500 reached new record closing highs, while Nvidia’s market value surpassed $4 trillion for the first time.

Wall Street closed higher despite ongoing uncertainty surrounding President Trump’s trade policies, as he continues to threaten elevated tariffs across various sectors and countries. Most recently, Trump has threatened to impose a 50% tariff on Brazilian imports unless Brazil halts legal proceedings against former President Bolsonaro.

On the U.S. economic front, the Labour Department released a report showing first-time claims for U.S. unemployment benefits unexpectedly edged modestly lower in the week ended July 5th. The report stated that initial jobless claims decreased to 227,000, a 5,000 decrease from the previous week’s revised level of 232,000.

Economists had expected jobless claims to inch up to 235,000 from the 233,000 initially reported for the previous week. Bitcoin rallied to all-time highs on Thursday, driven by demand from institutional investors and favourable policies from the U.S. President Donald Trump’s administration.

U.S. and European stock futures declined in Asia on Friday after President Donald Trump escalated tariff threats against Europe and Canada, erasing an early rally in regional share markets.

In commodity markets, oil prices continued to slide following yesterday’s stronger-than-expected U.S. supply data and more subdued demand forecasts from OPEC.

After opening flat, Nifty immediately turned red and remained under pressure throughout yesterday’s session, ending near the day’s low. Nifty fell 120 points or 0.47%, to close at 25355.

The Indian Rupee extended its advance for the third consecutive day against the greenback, closing at 85.64 levels. Its sustained strength is primarily attributed to weakness in the dollar index and continued optimism surrounding a potential US-India trade deal.

Indian markets are likely to open lower on the back of TCS’s disappointing revenue growth. Its revenue miss -3.3% QoQ Constant Currency (CC) was attributed to BSNL ramp-down, while the international market’s revenue declined 0.5% QoQ CC.

A clear violation of the Nifty’s 25311 level could trigger more selling pressure, pushing the index towards the supports of 25222 and 25,000. On the higher side, 25,550 could offer immediate resistance in the Nifty.