Opening Bell - Morning Commentary - 08 May 2026

Authored By Prime Research | Last Modified: May 8, 2026 12:26 PM IST

https://hdfcsky.com/news/usd-inr-may-8-rupee-falls-oil-jump-iran-hostilities

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US Markets Retreat as Hormuz Tensions Push Crude Higher

American forces struck Iranian military facilities responsible for attacks on warships transiting the Strait of Hormuz, adding that US forces “do not seek escalation.”

Oil resumed its rally Friday after US and Iranian forces exchanged fire near the Strait of Hormuz, stoking fears that a fragile ceasefire was unravelling and threatening further disruption to one of the world’s most critical shipping lanes.

The military exchanges injected fresh uncertainty into global markets, with crude jumping roughly 2% in after-hours trading amid revived concerns over energy supply stability and inflation.

US equities retreated with the S&P 500 falling 0.38% to 7,337.11 and the Dow shedding 313 points to 49,596.97 — though both indexes remain well above year-ago levels following April’s record monthly advance. Losses were driven by a cooldown in technology stocks, with the Dow slipping more than 0.6% after failing to breach the 50,000 threshold.

Broadcom shares dropped 4% after reports emerged that its landmark $18 billion AI chip deal with OpenAI is facing a major financing hurdle, contingent on Microsoft committing to purchase roughly 40% of the chips. Should Microsoft decline, the financing terms for the project would need to be renegotiated, casting doubt over the timeline of the high-profile partnership.

While long-term appetite for artificial intelligence remains robust, semiconductor firms like Intel and Advanced Micro Devices faced significant pressure, with some shares falling roughly 3%. This retreat follows a period of strong quarterly gains, as investors begin to weigh lofty valuations against actual earnings performance.

The Indian rupee strengthened for the second consecutive session yesterday, appreciating by 36 paise to close at 94.25, supported by gains in Asian currencies. Support came from short covering and steady dollar inflows through domestic banks.

Nifty extended its alternating trend of gains and losses, slipping marginally by 4 points to settle at 24,326. Despite the profit booking during the second half, the broader technical structure remains intact, with the index sustaining the uptrend. Immediate support is at the 24,000 level, while resistance is near 24,600.

Indian markets are likely to open lower on weak global cues.

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