Global Markets Await Nvidia Results, U.S. Imposes Additional 25% Tariff on Indian Imports  

Indian markets are slated to open subdued on the back of weak global cues 

U.S. stocks declined Monday, with major averages posting a lacklustre performance before coming under pressure into the close. The S&P 500 fell 0.4% and the Dow shed over 300 points as investors took profits following last Friday’s Fed-fuelled rally that lifted the Dow to a record closing high.  

Jerome Powell’s dovish Jackson Hole speech on Friday sparked a sharp rally in stocks and risk assets by reviving September rate cut expectations. However, Monday’s session saw consolidation as optimism gave way to caution, with focus shifting to upcoming inflation data and Fed communications.  

Nvidia, the S&P 500’s largest constituent, will report quarterly results on Wednesday amid high expectations for AI chip demand. The stock, which has doubled since April lows and gained 32% year-to-date, traded choppily as investors weighed earnings risk against the broader AI narrative. Tech stocks remained volatile ahead of this closely watched release, viewed as a bellwether for AI and technology sentiment.  

Traders appeared reluctant to make significant moves ahead of key events this week, including Nvidia’s earnings and Friday’s Commerce Department report containing the Fed’s preferred inflation readings. Markets will also monitor data on durable goods orders, consumer confidence, and second-quarter GDP.  

On the economic front, the Commerce Department reported new home sales fell 0.6% to an annual rate of 652,000 in July, following June’s upwardly revised 4.1% surge to 656,000. The decline missed economists’ expectations for a 0.5% increase to 630,000.  

The U.S. dollar rebounded modestly after Powell’s comments triggered a sharp selloff last week.  

Trade policy uncertainty persists as the U.S. recently notified a 50% tariff on select Indian exports.  

Back home, in the first session of the holiday-shortened week, Nifty gained 97 points (0.39%) to close at 24,967, supported by firm global cues. Markets will remain closed tomorrow to celebrate the Shree Ganesh Chaturthi festival.  

The index formed an inside bar candlestick pattern, signalling a pause after the recent decline. Such patterns typically mark low volatility phases that often precede sharp directional moves. A sustained break above 25,084—the high of the last two sessions—would confirm a bullish reversal. On the downside, the 20- and 50-DEMA, converging near 24,847, remain immediate support for Nifty.  

Source: HDFC Securities Prime Daily, 26 August 2025 

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