Trump's $1.5 trillion defense boost lifts industrials, all eyes on US Supreme Court decision

Wall Street ended mixed on Thursday as Nvidia and other technology stocks retreated, while defense companies rallied following President Donald Trump’s call for an expanded $1.5 trillion military budget.

Shares of Northrop Grumman and Lockheed Martin surged as much as 8% before paring gains.

The Dow reversed Wednesday’s decline to close higher, while the tech-heavy Nasdaq fell for the first time in four sessions.

Nvidia slid 2.2%, Broadcom declined 3.2%, and Microsoft dipped 1.1%. The S&P 500 technology index lost 1.5%, leaving it down approximately 1% year-to-date as investors grew increasingly cautious about AI-related stocks whose valuations have been elevated by outsized gains in recent years.

Glencore and Rio Tinto announced they are in preliminary buyout discussions that could create the world’s largest mining company with a combined market value of nearly $207 billion.

General Motors disclosed it would take a $6 billion charge to scale back certain electric-vehicle investments, becoming the latest automaker to retreat from EVs amid the Trump administration’s policy shifts and weakening demand.

The mixed performance came as traders appeared hesitant to make significant moves ahead of Friday’s release of the Labor Department’s closely watched monthly jobs report.

The US Supreme Court could rule as early as today on President Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose sweeping global tariffs,

including 10% baseline rates and higher reciprocal duties on key trading partners. A ruling striking down the tariffs could boost corporate profits by lowering input costs and easing trade frictions, though it might pressure government revenue, elevate Treasury yields, and trigger short-term equity volatility. Upholding the tariffs would support onshoring efforts but would also risk fuelling higher inflation and market uncertainty.

The Nifty extended its losing streak for a fourth consecutive session, falling 263 points to close at 25,876.

All sectoral indices closed deep in negative territory. The Metal, Oil & Gas, and PSU Bank sectors bore the brunt of the selling pressure, recording the day’s steepest losses.

The Nifty breached crucial support at its 50-day exponential moving average, currently at 25,911, and violated the previous swing low of 25,878 on the daily chart. The next meaningful support level appears near 25700, which coincides with the December 2025 swing low. On the upside, the 26,000–26,050 zone is expected to serve as strong resistance in the near term.

Indian markets are positioned to open modestly higher on positive global cues.

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Source: HDFC Securities Prime Research