Indian Markets to Open Higher on Positive Global Cues and Increasing Odds of an Interest Rate Cut in the US

US markets saw a mixed performance in the last session: the Dow Jones rose 203 points, while the S&P 500 slipped 0.2% and the Nasdaq fell 0.8%, weighed down by tech stocks like Nvidia. Positive bank earnings buoyed investor sentiments.

The late-day pullback on Wall Street came as a post by President Donald Trump on the social media platform Truth Social reinforced earlier concerns about trade tensions between the U.S. and China.

Major U.S. banks delivered strong quarterly results Tuesday, though market reactions were mixed. Wells Fargo led financial gainers with robust profits and an improved outlook, while JPMorgan Chase and Goldman Sachs beat expectations but closed modestly lower as global risks weighed on sentiment.

Strong investment banking fees drove Goldman’s performance, and JPMorgan raised its full-year net interest income forecast.

Technology stocks retreated, with Nvidia down 4%, Tesla falling 2.5%, and Oracle declining 1.4% on fears of trade-related disruptions. The Nasdaq 100 dropped 0.7%, while the S&P 500 slipped 0.16%. A late-session decline followed President Trump’s Truth Social post, reinforcing trade tensions.

Asian markets rebounded on Wednesday, supported by dovish comments from Fed Chair Jerome Powell and positive bank earnings, though U.S.-China tensions capped gains.

The dollar weakened on Wednesday after Powell’s remarks increased expectations for a rate cut this month. Powell noted the labour market remained in “low-hiring, low-firing doldrums” through September but suggested the economy may be on firmer footing. He emphasised a “meeting-by-meeting” approach to rate decisions.

Gold hit a record above $4,160/oz and silver topped $52/oz as investors sought safe havens amid geopolitical uncertainty and rate-cut expectations.

Oil fell to $58.60/bbl, pressured by trade headwinds and IEA warnings of oversupply in 2025–26, with weakening global demand offsetting OPEC’s near-term optimism.

After opening higher yesterday on the back of strong global cues, Nifty failed to sustain the momentum, immediately reversing its trend.

Despite yesterday’s fall in the Nifty, the primary uptrend remains intact for the Nifty, as it successfully held above its near-term averages. Immediate support is now seen in the band of 25,000–25,050, while 25,310 and 25,400 will act as key immediate resistances.

Indian markets are poised to open higher today on the back of positive global cues and increased expectations for an interest rate cut in the US this month.

Source: HDFC Securities Prime Daily, 15 October 2025

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