AI Stocks Propel NASDAQ to Record Highs; Indian Markets Set to Open Strong on Positive Cues.

The Nasdaq surged to a record high, gaining 0.5% as tech and growth stocks outperformed on rate cut expectations. Chipmaker Broadcom led the rally after providing strong AI-related guidance, while the S&P 500 also advanced as investors positioned for Fed accommodation.

Wall Street’s strength reflected growing optimism about interest rate cuts following the disappointing U.S. employment data on Friday. The weak jobs report reinforced investor expectations that the Federal Reserve will soon lower borrowing costs to support economic growth.

Friday’s troubling nonfarm payrolls report deepened concerns about a weakening job market and potential economic slowdown. Investors now anticipate multiple rate cuts this year, with markets pricing in aggressive Fed easing to address labour market deterioration.

The dollar tumbled to a seven-week low of 97.344 as traders braced for upcoming revisions to jobs data that could reveal even weaker employment conditions.

Global markets rallied on optimism about rate cuts, with world stocks advancing and gold hitting new highs. The MSCI Asia-Pacific Index, which tracks regional equity performance, climbed to its highest level since February 16, 2021, buoyed by gains in Japanese and South Korean markets that provided crucial support to the broader index.

The Nifty continued its upward journey yesterday for the fourth consecutive session on the back of strong global cues. Short-term trend for the Nifty is positive as it managed to close above its 20-day EMA placed at 24738. Immediate resistance for Nifty is now seen at 24900, above which a sharp short covering is expected. However, any move below the 24620 level would signal a resumption of the downtrend and could drag the Nifty towards the next support of 24,500.

Infosys is set to consider a share buyback on September 11. This decision comes at a crucial time when technology stocks face headwinds, and the buyback may provide much-needed support to investor confidence.

Indian markets are likely to open higher today on the back of positive local and global cues.

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