US indices fall for fifth consecutive day

US Stocks fluctuated early in the session on Thursday before ending mostly lower over the course of the trading day. The S&P 500 declined for the fifth consecutive session.

Market weakness stemmed from mounting uncertainty ahead of Federal Reserve Chair Jerome Powell’s Jackson Hole speech on Friday, where his remarks could significantly influence September’s monetary policy direction.

Walmart’s disappointing earnings, which missed estimates while highlighting tariff-driven cost pressures, dragged the retailer down over 4% and weighed on consumer staples.

Major technology stocks including Nvidia, Meta, and Amazon continued their recent decline amid valuation concerns and regulatory scrutiny.

Economic headwinds intensified as S&P Global PMI data revealed rising business inflation driven by new tariffs and higher input costs, dampening expectations for aggressive Fed rate cuts and clouding consumer spending prospects.

Initial unemployment claims in US reinforced concerns, climbing to 235,000—well above the expected 225,000 and marking an 11,000 increase from the previous week’s 224,000. Despite finishing off their session lows, all major indices remained firmly in negative territory as investors adopted a cautious stance.

Nifty rose for the sixth consecutive session yesterday by rising 33 points or 0.13%, to close at 25083.  Nifty witnessed profit booking in the second half and saw a fall of 85 odd points from the day’s high to close near the day’s low. After a strong rally for three consecutive days, the broader market witnessed some profit booking as well at higher levels. Nifty is finding resistance near the 61.8% Fibonacci retracement (25160) of the fall seen from 25669 to 25337. A sustainable level above 25160 could push the Nifty towards the 76.4% retracement level of 25355. On the downside, 24852 would continue to serve as a support.

Indian markets are likely to open soft on the back of weak global cues.

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Source: HDFC Securities Prime Research