The Prime Daily: 04 September 2026

Major U.S. stock indexes rebounded sharply, snapping recent multi-day losing streaks and driven by optimistic commentary from federal officials. The Dow Jones added over 620 points, while the tech-heavy Nasdaq Composite and the broader S&P 500 posted daily gains of more than one per cent.

Fed Governor Christopher Waller struck a relatively dovish tone, noting that recent data showed signs of disinflation despite inflation remaining above the FOMC’s 2% target. He indicated that if this trend continues in upcoming data, he would be inclined to support keeping the federal funds rate at its current level.

US sovereign bond yields retreated across the curve following comments from Federal Reserve Governor Christopher Waller indicating a potential pause in interest rate hikes. The 10-year Treasury yield fell back toward 4.76% as market participants lowered the implied probability of a rate hike at the upcoming September policy meeting while keeping a close eye on incoming August employment data.

Dell Technologies and Snowflake experienced substantial share price increases following robust quarterly reports highlighting strong financial metrics and growing demand for artificial intelligence. Mega-cap AI stocks led gains, with Meta up 3%, Alphabet up 1.6%, and Nvidia and Microsoft both higher.

The packaged food sector experienced downward pressure, as exemplified by Campbell Soup’s dividend cut and cost-saving measures to offset margin compression.

The KOSPI jumped about 1.5% and other Asian indices, including Japan’s Nikkei, rose in tandem with the US rally as rate-hike anxiety cooled. Investors across the region are now awaiting the US August jobs report for further direction on Fed policy.

The Indian rupee posted its biggest single-day gain since July 27, appreciating 49 paise to 94.48. The move was driven by heavy capital inflows under the RBI’s concessional swap scheme, which attracted $136.4 billion—far ahead of market expectations. A softer dollar and steady crude prices offered additional support.

Nifty shed 41 points to close at 23,873, marking its fourth consecutive session of losses. Technically, the index faces strong resistance in the 24,000–24,200 zone, now a critical supply area for any recovery. On the downside, a decisive break below 23,800 could open the path toward 23,600, while holding above this level may allow for short-term consolidation within the broader downtrend.