US Markets Hit Records as Fed Rate Cut Bets Intensify, Nifty Surges Past 25,000 Amid Currency Concerns

U.S. markets surged to fresh records Thursday as jobless claims spiked to a four-year high of 263,000, cementing expectations for Federal Reserve rate cuts despite August inflation accelerating to 2.9%.

The Dow breached 46,000 for the first time, while the S&P 500 and Nasdaq also hit new peaks as monetary easing optimism trumped growth concerns.

Nvidia, which gained on analyst upgrades citing sustained demand for AI infrastructure, and Warner Bros. Discovery soared 29% on rumours of a Paramount-Skydance acquisition. The surge came despite broader tech weakness, with Apple facing continued downgrades and selling pressure.

Markets now price in a 94.8% probability of a quarter- point Fed cut next week, with only 5.2% odds of a half-point reduction.

The dollar index weakened to 97.58 on rate cut bets, while crude oil fell nearly 2% on OPEC+ supply plans.

Gold hit an all-time high above $3,636 as investors sought inflation hedges.

Asian markets extended the rally today with Japan, South Korea, and Taiwan reaching record levels.

The rupee weakened to a historic low of 88.44 against the dollar, weighed by steep U.S. tariffs, persistent capital outflows, and heightened uncertainty among exporters and importers.

Infosys Ltd. announced on Thursday its first buyback in three years. The company will buy back shares worth Rs 18,000 crore- 10 cr shares at Rs. 1800 per share.

As expected, Nifty managed to surpass the 25000 hurdle and continued its upward journey for the seventh day in a row to close at its highest levels since 21 August.

Nifty finally managed to close above the downward sloping trend line resistance on the daily chart. Short-term trend of the Nifty remains bullish as it has been holding above 5, 20 and 50 DMAs. Immediate resistance for Nifty is seen at 25153, derived from the previous swing high.

On the lower side, a level around 24800 could offer immediate support.

Indian markets are poised to open strongly higher today, on the back of positive global cues.

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