Nasdaq, S&P 500 climb to best closing levels in over three months

Nasdaq, S&P 500 Climb to Best Closing Levels In Over Three Months, Indian markets expected to attempt a recovery today. U.S. stocks climbed and the dollar strengthened as investors assessed developments in ongoing tariff negotiations while tempering economic expectations ahead of Friday’s pivotal employment report.

Major indices retreated from session highs but closed decisively in positive territory. Technology shares powered the advance, with computer hardware and networking stocks posting substantial gains that lifted the tech-heavy Nasdaq. Housing and banking sectors also delivered notable strength, contributing to the broad-based rally. The market momentum followed a Labour Department report revealing an unexpected surge in U.S. job openings during April. However, new orders for factory goods declined more sharply than economists had forecast. Manufacturing orders tumbled 3.7% in April, exceeding the anticipated 3.0% drop and ending a four-month streak of consecutive gains. The steeper-than-expected decline underscored ongoing challenges in the industrial sector despite the surprising resilience in labour demand.

The Organization for Economic Cooperation and Development (OECD) said the global economy is on course for a more drastic slowdown than it had expected only a few months ago. It cited Trump’s trade war, and warned of even weaker growth as protectionism increases, fuelling inflation and disrupting supply chains. U.S. President Donald Trump will likely talk to Chinese President Xi Jinping this week to address trade disputes between the world’s two largest economies.

India’s benchmark equity indices closed lower for the third consecutive session on Tuesday, dragged down by financials and IT stocks. Breaching the previous swing low of 24462 could intensify the selling pressure for the Nifty. Below 24462, the Nifty could slide down towards the 50-DMA support, placed near 24185. The resistance for the Nifty has now shifted down to 24845. Our markets are expected to attempt a recovery today, buoyed by several positive developments – anticipated relief on the trade front following a direct call between Trump and Xi Jinping, the RBI’s Monetary Policy Committee’s expected rate cuts on Friday, and strength in US labour markets that lifted American indices overnight.

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Source: HDFC Securities Prime Research