The Prime Daily: 07 August 2026

Authored By Prime Research | Published at: Aug 7, 2026 09:13 AM IST

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Markets snap winning streak, focus turns to jobs report and Hormuz standoff

Major U.S. indexes closed slightly lower Thursday, ending a multi-day winning streak as investors booked profits after recent record highs.

The Dow fell 0.9%, weighed down by leadership changes and weak earnings at individual names; the S&P 500 slipped 0.2% for a second straight session, and the Nasdaq eased 0.1%.

Investors weighed a heavy earnings slate including Insulet’s 20% plunge on cut guidance against Middle East tensions and today’s expected jobs report.

European stocks bucked the trend, with the STOXX 600 hitting fresh records on strong earnings and optimism over a possible US-Iran deal.

Tech sentiment cracked after memory-chip makers Western Digital and SanDisk issued forecasts that fell short of lofty AI-driven expectations. Western Digital slid more than 14% and SanDisk over 9% in premarket trading, dragging Nasdaq 100 futures lower and raising questions about whether momentum is cooling among former AI market leaders.

Attention now shifts to Friday’s July nonfarm payrolls report, expected to show a modest 83,000 gain with unemployment holding at 4.2%. Market players will watch wage growth and labour-force participation for further signals on labour-market health.

Crudel Oil rallied sharply after Iran published a draft plan to bar U.S. and Israeli vessels from the Strait of Hormuz and impose steep fines on violators reversing earlier-week optimism that had pushed Brent down toward $75 on hopes of an Iran-Oman deal to reopen the waterway.

Brent jumped to $83 and WTI to near $78, a 3–4% surge. A broader U.S.-Iran agreement, which the Trump administration had signalled could be reached by Thursday, now looks unlikely to close soon.

Indian government reaffirmed its commitment to tariff rationalisation. Finance Minister Nirmala Sitharaman said Customs duties on most products are likely to be reduced to single-digit levels by the FY28 Budget, adding that rates have already been rationalised for all but 13 items.

The rupee was the laggard among Asian currencies, depreciating 10 paise to close at 95.22, pressured by a rebound in global commodity costs and persistent dollar demand from importers.

It was a muted session on Dalal Street yesterday, with the Nifty closing at 24,636, up 11 points. Nifty’s volatility has contracted over the past three trading sessions, with the index forming lower highs and higher lows on a daily basis.

The primary trend remains bullish as the index holds above all key moving averages. On the upside, 24,770 and 25,000 are likely to act as immediate resistance levels, while the 24,430–23,380 zone may provide support on declines.

Indian markets are set to open marginally lower today on the back of higher crude oil prices.

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