S&P 500 and Nasdaq hit record highs led by strength in technology shares

Alphabet – the parent company of Google surged more than 2%, helping the S&P 500 rise and close above 6,300 for the first time, while the Nasdaq climbed 0.4%. Strong earnings results from recent weeks have underpinned the rally, with over 80% of S&P 500 companies beating earnings expectations. Most global equities posted solid gains on Monday as the dollar weakened and bond yields declined.

Encouraging corporate earnings and investor optimism that economic damage from pending tariffs will remain limited further bolstered risk appetite. Uncertainty persists around the August 1 U.S. tariff deadline, though market participants are betting the economic impact will be muted. Investors are also closely monitoring signals from Federal Reserve Chair Powell regarding potential rate cuts, with markets assigning a 56% probability to a rate cut in September.

Asian share markets held near four-year peaks on Tuesday, supported by Wall Street’s record closing high ahead of upcoming corporate earnings reports. Japanese markets resumed trading after a holiday following weekend upper house elections, in which the ruling coalition suffered a defeat.

Indian equity markets rebounded strongly yesterday, reclaiming the crucial 25,000 mark. The rally was led primarily by banking heavyweights supported by positive Q1 earnings and a broad sectoral advance in financials, auto and capital goods. Despite continued foreign investor outflows, domestic sentiment improved, although broader markets remained mixed, with small-caps ending flat and mid-caps posting modest gains. The rupee weakened slightly, trading at ₹86.36 against the US dollar. Nifty has been respecting the 50-day EMA support, currently placed at 24938 levels, while on the higher side, 25255 could offer immediate resistance.

Indian markets are likely to open mildly higher and build on that momentum on the back of positive global cues.

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Source: HDFC Securities Prime Research