Asian markets rebounded on Thursday after fears surrounding artificial intelligence (AI) sparked a global sell-off earlier in the week. However, optimism remains fragile, with US futures still trading lower.
Recent earnings results from AI companies indicated steady business growth, helping calm investor nerves. Yet, the broader US economy continues to show mixed signals. McDonald’s reported a decline in footfall from lower-income customers, even as spending among the wealthy increased — a sign of uneven growth. Meanwhile, the ADP employment report, which suggested strong private-sector job growth, faced criticism for being overly optimistic. Adding to concerns, large bearish positions taken against major US stocks have raised questions about market stability.
Crude oil prices also continued to fall, reflecting weak demand — a worrying signal for global consumption. In the derivatives market, Gift Nifty closed at 25,785 on Wednesday night, briefly climbed to 25,799 on Thursday morning, and then slipped to 25,720, indicating a slightly positive but cautious start for Indian equities.
European stocks ended higher on Wednesday, tracking signals of recovery in the US markets. Denmark’s Novo Nordisk reported strong results but saw shares drop 4.5%, as it entered a bidding battle with Pfizer over a US pharmaceutical acquisition. Pfizer had initially offered $8.1 billion, while Novo Nordisk raised its bid to $10 billion. BMW, which reported earnings in line with expectations, jumped 6.9%.
After Tuesday’s AI-related panic, Wall Street regained some stability on Wednesday. Several AI companies posted strong quarterly results, boosting investor sentiment. Moron Technologies surged 9% on robust performance, while AMD, Oracle, and Broadcom also rebounded. AMD’s results were particularly strong, though Super Micro Devices and Arista Networks fell 11% and 9%, respectively. Nvidia and Microsoft edged lower, while Tesla gained 4.5% despite opposition from Norway’s sovereign wealth fund to Elon Musk’s proposed $1 trillion pay package.
A stronger-than-expected rise in US private-sector jobs weakened expectations of an interest rate cut. Meanwhile, the US Supreme Court began hearings on a tariff-related case, questioning the legality of certain duties imposed on imports. The move has raised hopes among importers that tariffs on goods from Canada and Mexico may be lifted, with a verdict expected around late December or early January.
The Dow Jones Industrial Average rose 225.76 points (0.48%) to close at 47,311. The S&P 500 gained 24.74 points (0.37%) to 6,796.29, and the Nasdaq Composite climbed 151.16 points (0.65%) to 23,499.80. US futures, however, remained in the red early Thursday, with Dow down 0.05%, S&P down 0.12%, and Nasdaq down 0.25%.
Asian markets opened on a stronger note, with Japan’s Nikkei up 1.4%, Hong Kong gaining 0.75%, and China’s main index rising 0.4%. South Korea’s Kospi also opened higher before trimming gains. Shares of Chinese driverless car firms WeRide and Pony.ai fell nearly 12% after listing in Hong Kong.
Indian equities avoided the global sell-off earlier in the week, partly due to the Wednesday market holiday. With US and European markets recovering, the Indian market opened Thursday on a positive note. Nifty, which had closed just below 25,600 on Tuesday, is expected to face resistance around 25,750–25,900, with support seen near 25,525 and 85,445 levels.
Mehlli Mistry’s decision to voluntarily step down from Tata Trusts has brought relief to Tata Sons and the Tata Group, potentially ending a prolonged legal and governance dispute. Noel Tata is now expected to take a more active role in guiding the group’s future.
Indian Hotels Company reported a strong performance in the September quarter, with revenue up 12% and net profit rising 15% (excluding one-time income of ₹307 crore). Operating profit rose 16%, with margins improving to 30.8%.
India’s weight in the MSCI index was raised from 15.5% to 15.6% by Morgan Stanley, with Paytm, Fortis Healthcare, GE Vernova, and Siemens Energy added to the list, while Tata Elxsi and Concor were removed. This change is expected to attract over $140 million in fresh inflows.
Brokerages lowered Hindalco’s target price after subsidiary Novelis reported weak results, with sales down and operating profit falling from $462 million to $422 million. In contrast, CSB Bank posted a 15.8% rise in quarterly net profit, driven by 25% growth in deposits and 29% growth in advances.
Gold prices rebounded strongly on Wednesday as upbeat economic indicators in the US raised optimism about growth. Short covering by traders pushed prices higher, with gold closing at $3,980.20 per ounce before easing slightly to $3,970 on Thursday morning. In Kerala, 22-carat gold dropped ₹720 to ₹89,080 per sovereign. Silver also gained, closing at $48, while platinum, palladium, and rhodium traded at $1,560, $1,433, and $7,800, respectively.
Industrial metals showed mild fluctuations. Copper rose 0.02% to $10,602.65 per tonne, while aluminium slipped 0.02% to $2,854.32. Zinc, nickel, and tin declined, while lead edged higher. Rubber fell 1.64% to 168.20 cents per kg, cocoa dropped to $6,334.46 per tonne, while coffee jumped 2.79%. Palm oil prices fell 0.84%.
The dollar index eased slightly to 100.20 on Wednesday and further to 100.03 on Thursday morning. The euro strengthened to $1.1495, the pound rose to $1.305, while the yen weakened to 153.96 per dollar. The yield on 10-year US Treasury bonds rose to 4.151%.
In India, the rupee closed at ₹88.66 per dollar, aided by strong RBI intervention. China’s yuan remained steady at 7.13 against the dollar.
Crude oil prices continued their downward slide as excess supply weighed on markets. Brent fell 1.5% to close at $63.52 per barrel, trading slightly higher at $63.56 on Thursday morning. WTI crude hovered around $59.64, while Murban crude was at $65.7. Natural gas prices edged down to $4.26.
Cryptocurrencies posted mild gains after sharp recent losses. Bitcoin rose above $103,300, while Ethereum traded near $3,400. Solana climbed to $161, though most tokens remain 20–30% below their record highs.