US Markets Hit Records on Rate Cut Bets, Hopes on India-US Trade Talks Boost Sentiment.

Mumbai, 10 September 2025: U.S. indices reached record closing highs on Tuesday, driven by expectations for Federal Reserve rate cuts following a sharp downward revision to U.S. job data. This labour market weakness reinforced bets for a 25-basis-point cut at next week’s Fed meeting.

After directionless early trading, stocks climbed throughout the session, extending Monday’s gains to new records. The Labour Department will publish producer price inflation data on Wednesday and consumer price inflation on Thursday. While Friday’s weak jobs report boosted confidence in rate cuts, inflation figures could determine the Fed’s aggressiveness in lowering rates.

Economists expect August producer price growth to remain unchanged at 3.3% annually. Consumer price inflation is forecast to accelerate to 2.9% from July’s 2.7%, while core consumer prices excluding food and energy should hold at 3.1%.

CME Group’s FedWatch Tool shows a 91.8% probability of a quarter-point cut and an 8.2% chance of a half-point reduction.

Oracle surged 26% in after-hours trading on AI-driven cloud revenue optimism, offsetting earlier earnings disappointment. Apple fell 1.5% after unveiling new iPhones, as investors questioned whether sustained demand could be maintained amid concerns about global tariffs and market saturation.

Oil prices rose 1.35% to $63.10 per barrel for WTI on heightened geopolitical risk following an Israeli airstrike in Qatar and persistent US sanctions on Russia. Energy companies like Chevron and Exxon Mobil led S&P sector gains on renewed supply disruption concerns.

Gold traded near $3,626 per ounce, up 44% year-over-year, briefly touching record highs as safe-haven demand surged. The rally stems from anticipated rate cuts, central bank purchases, and ongoing geopolitical turbulence.

Nifty continued its upward journey yesterday, rising for the fifth consecutive session and closing at a two-week high. By closing above 24791, Nifty managed to reclaim its level above 50 DEMA. The index has now decisively surpassed its 5, 10, 20, and 50-day DMAs, which is a bullish signal on short-term charts. However, a level above 25000 is likely to bring back the much-awaited momentum in the uptrend. Short-term support for the Nifty has shifted up to 24750.

Prospects of advancing trade negotiations between India and the USA, as indicated by recent interactions between Donald Trump and PM Modi on X/Twitter, will enthuse the bulls.

Indian markets are expected to open higher on the back of promising developments in bilateral trade discussions and strong overnight global cues.

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