All eyes on RBI’s MPC meeting; Wall Street ends subdued yesterday

Wall Street was subdued yesterday following a slowdown in job growth. All Eyes are on The RBI’s Monetary Policy Committee (MPC) Meeting Tomorrow. U.S. equity markets closed little changed on Wednesday, following a lower-than-expected ADP private-payroll reading for May. The S&P 500 closed flat, the Nasdaq Composite edged higher, and the Dow Jones fell. Both the S&P 500 and Nasdaq 100 remain within 3% of their February record highs.

The ADP National Employment Report showed U.S. private employers added just 37,000 workers in May—the smallest gain since March 2023 and well below the expected 130,000. This disappointing figure contrasts with Tuesday’s stronger JOLTS report, which showed job openings rising to 7.4 million in April from 7.2 million in March. Investors now await Friday’s nonfarm payrolls data for further indication of how trade uncertainty is affecting the U.S. labour market.

Adding to the weak jobs data, the ISM services PMI fell to 49.9 in May from 51.6 in April—below expectations and the first reading under 50 since June 2024. This signals that the services sector activity stagnated last month. The European Central Bank is set to announce its interest rate decision later today. Gold prices rose Thursday as weak U.S. economic data boosted safe haven demand amid persistent global economic and politic al uncertainties.

Oil prices fell around 1% after U.S. data showed gasoline and distillate stockpiles grew more than expected, signaling weaker demand. Saudi Arabia’s price cuts for July crude deliveries to Asia added downward pressure. South Korean stocks rise 2% to lead gains in Asia after opposition leader wins presidential election. The FPIs snapped a three-day selling spree, as they purchased equities worth Rs. 1,076 crore on June 4, while DIIs extended their buying on the 12th day, buying equities worth Rs. 2,566 crore. Indian benchmark indices ended higher Wednesday, breaking a three-day decline, with the Nifty above 24,600. The rally was driven by positive global markets, broad-based sector buying, and expectations of an RBI rate cut ahead of the policy meeting on Friday. Asian shares opened cautiously after weak US economic data reinforced expectations for Federal Reserve rate cuts this year. Nifty managed to hold its level above the previous swing low of 24462 registered on 22 May 2025. On the upside, the swing high of 24845 would offer resistance. Indian markets are likely to open flat on the back of subdued cues from Wall Street. All eyes are on the RBI’s Monetary Policy Committee (MPC) meeting tomorrow.

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Source: HDFC Securities Prime Research