The US Federal Reserve delivered an unexpected jolt to global markets by cutting interest rates by 0.25% to a range of 3.75–4.00%. However, comments by Chair Jerome Powell that a further rate cut in December was unlikely sent equities tumbling. All eyes are now on the crucial meeting between US President Donald Trump and Chinese President Xi Jinping in South Korea, where trade talks could shape market sentiment.
If both leaders agree on a framework for a US–China trade deal and discuss lowering the current 55% tariffs on Chinese goods, global equities may find support. Trump also hinted that a trade agreement with India could materialise soon—good news for exporters of jewellery, textiles, and marine products.
In the tech world, Meta and Microsoft slipped in after-hours trading despite better-than-expected results, while Alphabet rallied on strong cloud and YouTube revenues. Following the Fed statement, gold fell but later recovered, though it failed to cross the $4,000 mark.
European stocks ended mixed, with the UK market gaining modestly. Mercedes-Benz shares rose 4.5% despite a 70% plunge in quarterly profit, while Spanish lender Santander gained 4.1% and Deutsche Bank advanced 5%. Adidas shares, however, dropped over 10% after warning of slowing US sales.
In the US, Powell’s comments erased earlier gains, dragging major indices lower. The Dow Jones fell 74.37 points (0.16%) to 47,632.00, the S&P 500 eased 0.30 points to 6,890.59, while the Nasdaq Composite climbed 130.98 points (0.55%) to 23,958.47 on Nvidia’s strong rally. Futures later rebounded slightly, with the Dow up 0.15%, the S&P 0.22%, and the Nasdaq 0.16%.
Asian markets opened mixed, with Japan and Hong Kong edging up while Australia remained weak. South Korea’s market soared after resolving a $50 billion investment dispute with the US, and Samsung’s 160% profit surge boosted sentiment.
Indian equities ended higher on Wednesday, with the Nifty crossing 26,000 for the first time in a year. The Sensex, however, closed just below 85,000. Gains were led by petroleum, metal, FMCG, pharma, IT, and realty sectors. Adani Group stocks surged up to 15% after strong results.
Trump’s remarks on a possible India–US trade pact lifted textile and seafood exporters, while SEBI’s draft regulations capping mutual fund fees weighed on asset management companies.
The Nifty rose 117.70 points (0.45%) to 26,053.20, the Sensex climbed 368.97 points (0.44%) to 84,997.13, and the Bank Nifty gained 171.15 points (0.29%) to 58,385.25. Broader markets were also firm, with midcaps up 0.64% and smallcaps up 0.43%.
Foreign investors sold shares worth ₹2,540 crore, while domestic funds bought ₹5,692 crore. Market sentiment remained cautiously optimistic, with support expected at 25,950–25,990 and resistance around 26,100–26,175.
SAIL’s quarterly profit stood at ₹419 crore, better than analysts’ estimates despite lower margins. NTPC Green Energy’s income jumped 22%, with profits more than doubling. HPCL reported a sharp decline in profit but still exceeded expectations.
Brigade Enterprises posted a 37% rise in net profit on strong realty demand, and PB Fintech reported a 165% surge in profit driven by insurance growth. L&T’s net profit rose 15.6%, below forecasts, but order inflows climbed 45%.
Meanwhile, Nvidia entered the $5 trillion market-cap club—the first company ever to do so. Founded by Taiwan-born Jensen Huang in 1993, Nvidia has risen twelvefold since the launch of ChatGPT in 2022, becoming the world’s most valuable listed company.
Gold prices remained volatile after Powell’s comments dampened hopes of another rate cut. Spot gold touched $4,031 an ounce before slipping to close at $3,931.10. Early Thursday trade saw prices fluctuate between $3,917.20 and $3,966.70.
In Kerala, 22-carat gold gained ₹1,160 per sovereign on Wednesday to close at ₹89,760. Silver rose to $47.85 an ounce, while platinum traded at $1,594, palladium at $1,396, and rhodium at $7,800.
Industrial metals surged midweek, with copper up 1.38% to $11,067.50 a tonne due to reduced mining output in Indonesia, Chile, the Dominican Republic, and Congo. Aluminium edged up to $2,889.96, while lead, zinc, tin, and nickel also gained. Rubber slipped 0.23% to 174.00 cents per kg, while cocoa rose 0.70% to $6,044.28 a tonne. Coffee gained 0.47%, tea was steady, and palm oil fell 1.46%.
The Fed’s policy stance strengthened the greenback. The dollar index closed 0.5% higher at 99.22 before easing to 99.04 in early trade. The euro slipped to $1.603, the pound to $1.3191, and the yen to 152.69 per dollar.
US 10-year Treasury yields rose to 4.076% as bond prices declined.
The Indian rupee appreciated slightly on Wednesday, closing 7 paise stronger at ₹88.20 per dollar. The Chinese yuan remained stable at 7.10 per dollar.
Crude oil edged higher, with Brent closing at $64.92 a barrel and WTI at $60.31. Natural gas gained 1%.
Cryptocurrencies extended losses following the Fed decision. Bitcoin fell below $110,700, Ether dropped under $3,930, and Solana slid beneath $195.
