The Prime Daily: 23 October 2026

Authored By Prime Research | Published at: Oct 23, 2026 10:07 AM IST

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U.S. equities sold off sharply on Thursday as renewed concerns over artificial-intelligence spending combined with a surge in crude prices. The Nasdaq Composite fell 2.6% to 26,008.86, its worst session since June while the S&P 500 lost 1.21% to 7,663.43, its biggest daily decline since July.

The Dow Jones Industrial Average bucked the trend, closing marginally higher by 11.89 points, or 0.02%, at 52,867.98, aided by strength in financials. Investors rotated away from technology into defensive sectors such as utilities, consumer staples and healthcare.

Meta Platforms dropped 7%, despite beating revenue expectations and issuing upbeat guidance, as investors focused on the scale of its AI-related spending. Advanced Micro Devices fell more than 8%, while Micron Technology and Nvidia dropped 6% and 4%, respectively.

Safe-haven demand lifted U.S. Treasuries, with the 10-year yield falling more than 17 basis points to 4.972%, its lowest level in nearly a month. The two-year yield shed over 16 basis points to 4.659%.

Oil prices jumped to a one-month high amid reports that the U.S. and Israel may launch renewed strikes against Iran after next month’s U.S. midterm elections. Brent crude rose 4% to settle at $113.17 per barrel, while WTI gained 2.39% to $99.47 per barrel.

Precious metals came under pressure, with silver futures sliding nearly 5% to around $55 per troy ounce—the lowest close since November 2025. Gold also fell sharply to a near three-month low of $4,025 per ounce.

Japan’s core inflation rose to 2.1% in September, the highest this year and above expectations, driven by a weaker yen and higher energy-related import costs.

Asian markets trading mixed as investors reduced exposure to technology majors on doubts over AI spending and moved toward safer assets such as Treasuries and the yen. South Korea’s Kospi fell nearly 2%, Japan’s Nikkei 225 slipped 1.8%, while Hong Kong’s Hang Seng Index trading higher by 0.2%.

Coming to our markets, Nifty slipped for a third straight session, shedding 123 points to settle at 22,687. It was a highly volatile trading session with the index swinging in both directions through most part of the day.

Broader markets continued to underperform. The Nifty Midcap 100 fell 0.87%, while the Nifty Smallcap 100 dropped 1.14% to its lowest level since June 12, 2026. Market breadth stayed weak, with the advance–decline ratio at 0.52, pointing to continued broad-based profit-booking across mid- and small-cap stocks.

The Indian rupee snapped an eight-day winning streak, weakening 36 paise to close at 94.82 against the dollar. The currency was pressured by dollar buying, higher crude prices amid geopolitical tensions and overall risk aversion.

Four Nifty constituents—Dr Reddy’s Laboratories, Infosys, JSW Steel and Shriram Finance—are scheduled to declare their quarterly results today.

On the daily chart, the Nifty formed a Doji candle, signalling indecision after a volatile session. A move above yesterday’s high of 22,785 could indicate a short-term trend reversal and open the door for a recovery toward 23,175, the next key resistance. On the downside, 22,500 remains the immediate support.

Nifty is likely to open with modest gains, tracking mixed global cues and sharp fall in U.S. Treasury yields.

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