The Prime Daily: 01 July 2026

U.S. equity markets closed higher yesterday, as investor sentiment shifted back toward high-growth technology names following a period of volatility. The Nasdaq Composite led the gains with a 1.52% increase, significantly outpacing the broader S&P 500 and the Dow Jones Industrial Average, which saw more modest advances. This upward momentum was largely fuelled by renewed buying in semiconductor and software firms, even as the industrial and financial sectors showed more cautious participation.

The semiconductor industry reached a historic milestone in mid-2026, with the Philadelphia Semiconductor Index recording its best quarterly performance ever. Significant surges in the shares of companies such as Micron Technology, Advanced Micro Devices, and Nvidia have been central to this growth, supported by a massive expansion of artificial intelligence data centre infrastructure.

The S&P 500 gained 14.9%, the Nasdaq surged 21.4%, and the Dow climbed ~13% for Q2 the best quarterly performance since 2020 even as tech shares faced selling pressure in June.  In the first six months of 2026, the Dow notched a rise of 8.9%, marking its best first-half performance since 2021. During the same period, the broad-market S&P 500 rose 9.6%, and the Nasdaq climbed 12.8%. The small-cap Russell 2000  surged nearly 22% to clinch its best first-half performance since 1991.

Nymex Crude Oil is trading near $70, on pace for a 30% quarterly plunge the steepest since the pandemic-era crash following the mid-June U.S.-Iran ceasefire framework and the agreed reopening of the Strait of Hormuz. OPEC+ has also approved its fourth consecutive output quota hike since April, adding approximately 600,000 barrels per day cumulatively and compounding supply-side pressure.

The Japanese yen weakened to a fresh 40-year low against the dollar, extending losses from the previous session as traders remained alert for possible intervention by Japanese authorities.

Federal Reserve Chairman Kevin Warsh will speak at the European Central Bank Forum on Central Banking in Sintra, Portugal, today. Since taking the helm, Warsh has set out to remake the U.S. central bank through the adoption of new task forces that will comprehensively review the Fed’s current strategies to define modern monetary policy

The Indian rupee weakened for a third straight session yesterday, losing 12 paise to close at 94.66. The currency remained under pressure from safe-haven flows into the dollar and steady corporate demand for the greenback. Broader risk-off sentiment across global markets also weighed on the domestic currency.

Markets will track monthly auto sales figures, banks’ quarterly business updates, and Q1 earnings over the coming sessions.

Foreign investors resumed selling in the cash market and rolled over their short positions in index futures, with 90% of total index futures positions on the bearish side.

Nifty fell for a second straight session yesterday, ending 80 points lower at 23,865. A decisive breakout above the recent swing high of 24,261, with sustained volume, will be needed to restore a firm bullish setup. On the downside, 23,784 remains the key near-term support, and a close below this level would increase the risk of a deeper correction.