AI Bubble Concerns Trigger Tech Selloff, Resilience of Indian Equities Under Test.

The S&P 500 fell 1.56% Thursday, surrendering early gains as Nvidia’s rally faded amid concerns over stretched AI valuations and diminishing prospects for a December rate cut. The Nasdaq 100 dropped 2.38%.

Despite beating earnings estimates and surging 5% premarket, Nvidia reversed course to close down 3.2%. Doubts about AI spending sustainability and heavy tech concentration triggered aggressive afternoon selling.

The semiconductor selloff rippled across the sector: AMD fell nearly 8%, Micron dropped 11%, and the PHLX Semiconductor Index declined almost 5%.

Walmart provided a rare bright spot, rising 6.5% after raising guidance on strong e-commerce and advertising growth. The retailer reported better-than-expected Q3 results and noted less tariff impact than previously anticipated.

Bitcoin tumbled by more than 5% to $86,724, hitting a seven month low. Massive outflows from spot Bitcoin ETFs and retail panic intensified the decline.

September jobs data showed stronger-than-expected hiring but downward revisions to August and rising unemployment, suggesting labour market weakness. The mixed signals, combined with recent Fed commentary on persistent inflation concerns, reinforce expectations that December rate cuts remain unlikely.

Crude oil fell 1% to $58.38 on supply uncertainty and geopolitical tensions. Gold held flat near $4,080 as risk-off sentiment offset reduced rate-cut expectations.

Asian markets extended the global selloff on Friday, with investors dumping risk assets despite Nvidia’s strong earnings, as U.S. jobs data failed to clarify the rate outlook.

Nifty continued its upward momentum for the second consecutive day, gaining 139 points to close at 26,192 yesterday.

Nifty remains in a strong uptrend, holding above key moving averages. The prior swing high near 26,100 is likely to act as near-term support, while the all-time high at 26,277 poses immediate resistance.

Indian markets are poised to open marginally lower amid weak global cues.

The resilience of Indian equities will be tested as investors watch whether key indices can find support at near-term levels despite global headwinds.