Markets Awaits Fed as US Indexes Hit Records

The S&P 500 and Nasdaq hit fresh highs, propelled by technology giants and surging AI optimism. Nvidia jumped nearly 5% on major partnership announcements, driving sector momentum.

Markets widely expect a quarter-point rate cut. Benign inflation data and cautious consumer sentiment are bolstering bullish outlooks despite labour market concerns.

While the Fed is expected to cut rates by a quarter point, traders will scrutinise the accompanying statement and Chair Jerome Powell’s comments for signals about future cuts.

Tuesday’s trading showed continued momentum from Monday’s rally, fueled by optimism over a potential U.S.-China trade deal. A rare metals agreement between the U.S. and Japan bolstered confidence ahead of President Trump’s meeting with Chinese President Xi Jinping later this week.

UPS surged 12% and PayPal leapt 15% on strong earnings and positive guidance. Microsoft, Alphabet, and Meta report after the Fed meeting, with results likely setting the market’s tone.

Apple briefly topped $4 trillion in market value Tuesday—the third Big Tech company reaching this milestone—as robust iPhone demand offset concerns about its slower AI progress.

The Republican-led Senate passed legislation 52-48 to overturn President Trump’s tariffs on Brazil by terminating his July national emergency declaration, issued in retaliation for Brazil’s prosecution of former President Jair Bolsonaro for an alleged coup attempt. Five Republicans joined Democrats in the first of three expected tariff bills this week.

Asian markets rose on Wednesday, buoyed by Wall Street’s AI-driven rally, as investors awaited the Fed decision and tech earnings. Lower U.S. rate expectations supported bonds, while the dollar hovered near a one-week low on bets the Fed’s anticipated cut wouldn’t be the year’s last.

Gold dropped further below $4,000 as profit-taking and easing market anxiety swept the precious metals space. Crude oil prices stayed stable near $60 amid continued drawdowns in U.S. inventories.

The Nifty gained 5.4% in the October series, its highest series-to-series jump since June 2024, while the Bank Nifty surged 6.55% to a record high. Strong open interest at 1576 Cr shares and FIIs’ improved long-to-short ratio of 0.24 indicate positive momentum for November, with support at 25500-25700 and resistance at 26000-26100. Nifty continues to consolidate within the 25,700–26,100 range.

A decisive breakout on either side of this band could determine the next directional move. With the index currently holding above key moving averages, the bias remains tilted toward a breakout in the coming sessions.

Source: HDFC Securities Prime Daily, 29 Oct 2025

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