The Prime Daily: 02 June 2026

Records on Wall Street, Oil Weighs on Indian Markets

U.S. stocks opened June on a high note, with the S&P 500, Dow Jones, and Nasdaq Composite all closing at record highs the eighth consecutive daily gain for the S&P 500 and Nasdaq. Technology and AI stocks continued to lead the rally. The S&P 500 crossed 7600 for the first time, while the Nasdaq added 0.3%. Snowflake touched a new 52-week high of $282, reflecting sustained investor appetite for cloud data and AI platforms.

NVIDIA surged more than 6% after unveiling its RTX Spark superchip at Computex, lifting Microsoft, Dell, and Arm Holdings alongside it. Intel and Qualcomm retreated on the news.

Oil markets were volatile. Brent crude initially rose more than 7% as renewed fighting threatened a fragile U.S.-Iran ceasefire, then spiked further after Iranian state media reported the country was suspending nuclear talks with Washington. Iran’s threat to close the Strait of Hormuz amplified fears of supply disruption and pushed prices to mid-May levels. Reports of continuing peace talks helped steady markets by the close.

The 10-year Treasury yield climbed toward 4.46% after U.S. manufacturing activity beat expectations, pushing long-term mortgage rates to nine-month highs and raising borrowing costs for corporations and homebuilders.

Gold futures fell as a stronger dollar and surging oil prices stoked inflation concerns and renewed bets on Federal Reserve rate hikes. Investors are now focused on upcoming jobs data and the trajectory of U.S.-Iran negotiations for further policy cues.

India’s manufacturing activity strengthened in May, with the PMI rising to 55.0 from 54.7 in April, its highest level in three months. Growth was supported primarily by domestic demand, while Input costs rose at the second-fastest pace since April 2022, prompting firms to accelerate inventory building.

GST collections remained healthy during May. Gross GST revenue rose 3.2% YoY to ₹1.94 tn, while net collections increased 3.3% YoY to ₹1.67 tn. Excluding the impact of a one-off spectrum-related payment made last year, gross GST collections grew 9% YoY, while net collections rose 10.1%.

Asian markets opened lower today as investors weighed renewed uncertainty over U.S.-Iran peace negotiations.

Indian rupee gave up early gains to close flat against the US dollar after weakening by over 25 paise intraday. The pressure was largely driven by rising crude oil prices and subdued domestic equity sentiment.

The Nifty declined for the fourth consecutive session yesterday, falling 165 points to settle at 23,382, its lowest closing level since May 12. Despite a positive start with a 107-point gap-up on the back of strong global cues, the index quickly lost momentum and continued its southward journey throughout the session. It eventually closed near the day’s low, marking a sharp reversal of over 375 points from the intraday high.

Nifty continues to trade below all key moving averages, indicating a prevailing downtrend across timeframes. Immediate support is placed at the recent swing low of 23,262; a decisive breach could accelerate downside momentum toward the 23,000. On the upside, the 23,700–23,800 zone is likely to act as a resistance band.

Indian markets are poised to open subdued on weak Asian cues.