The Prime Weekly: 08 June 2026

Wall Street experienced a significant downturn as the tech-heavy Nasdaq plunged 4.18%, marking its steepest single-day decline since early 2025. This selloff was primarily driven by heavy losses in the semiconductor industry, with major players like Nvidia and Micron seeing sharp drops following a robust May jobs report that increased the likelihood of a Federal Reserve interest rate hike. Friday’s market rout erased $1.4 trillion in S&P 500 value, triggered by Broadcom’s disappointing AI revenue guidance and a strong May jobs report that reignited fears of further Federal Reserve rate hikes.

SpaceX plans to raise at least $75 billion by selling over 555 million shares at $135 apiece, setting a valuation of over $1.75 trillion in what would be one of the largest IPOs in history. Demand for SpaceX shares has triggered significant selling across other equities as retail and institutional buyers raise cash.

The 2-year Treasury yield reached 4.17%, its highest level since February 2025, while the 10-year yield rose to approximately 4.55% as investors reacted to a hot labor market report. This surge reflects growing market consensus that persistent inflation and economic resilience may force the Federal Reserve to adopt a more hawkish monetary stance through the remainder of the year.

Asian markets tumbled sharply on Monday, with South Korea’s chip-heavy KOSPI dropping 8% and triggering a 20-minute trading halt before recovering intraday to 4.5% loses, while Japan’s Nikkei fell 3.5% in today’s trade.

Global oil prices climbed on escalating U.S.-Iran tensions, with Brent crude trading near $96 per barrel as missile exchanges threatened to unravel a fragile ceasefire and stoke supply disruptions. Prices surged further after Iran launched multiple missile waves at Israel following renewed Israeli airstrikes on Beirut.

OPEC+ on Sunday agreed to lift output targets by 188,000 bpd from July its fourth straight monthly increase but the move is largely symbolic. Gulf state export restrictions have gutted actual production, with April output collapsing to 33.19 million bpd from 42.77 million bpd in February.

India’s GDP grew 7.8% in Q4 FY26 (January-March 2026), beating expectations. The full-year FY26 growth came in at 7.7%, up from 7.1% in FY25 and slightly above the government’s earlier forecast of 7.6%. Growth was driven by strong manufacturing, services, consumption, and investment, though agriculture slowed. The RBI has since cut its FY27 growth forecast from 6.9% to 6.6%, citing geopolitical tensions and monsoon uncertainties.

The RBI’s MPC announced on Friday that the repo rate will remain unchanged at 5.25% for the third consecutive meeting, maintaining the “neutral” policy stance. The committee raised India’s CPI inflation projection for FY27 to 5.1% from 4.6%, while lowering the FY27 GDP growth forecast to 6.6% from 6.9%, amid concerns over the Middle East conflict and rising crude oil prices.

The Standing Deposit Facility (SDF) rate continues at 5%, with MSF rate and Bank Rate unchanged at 5.5%, ensuring liquidity management remains aligned with the monetary framework. The MPC voted unanimously for the status quo on rates, citing the weakening rupee, geopolitical risks to economic growth, and the need to monitor inflation dynamics more closely before considering any further rate adjustments. Governor Sanjay Malhotra emphasised India’s resilience against global economic shocks while maintaining confidence in price stability and supporting sustainable growth in the coming quarters.

Nifty has been consolidating in a narrow range, indicating a lower-range consolidation. The index remains below key moving averages, maintaining a bearish bias.

Near-term support lies in the 23,000-23,100 band, while immediate resistance is placed at 23,557.