US markets came under pressure again as stronger-than-expected jobs data revived fears of higher interest rates. President Donald Trump’s fresh threat of halting trade with countries running trade surpluses against the US has added another layer of uncertainty.
The escalation of tensions in West Asia is also worrying investors, with fears that a prolonged conflict could push up crude oil prices. Asian markets were mostly higher this morning, while US futures traded lower. Indian markets are likely to open on a weak note.
Gift Nifty, which trades in the derivatives segment at GIFT City, closed at 24,010 on Friday night and slipped to 23,960 this morning, signalling a weak opening for Indian equities.
A stronger-than-expected US jobs report for August has revived concerns over interest rates. Against expectations of 53,000 new jobs, the US economy added 1,62,000 jobs. The unemployment rate stood at just 4.1 percent.
The data indicates that the US economy remains resilient, giving the Federal Reserve room to keep interest rates higher. If the inflation data due this Friday shows consumer price inflation above 3.5 percent, market expectations of a 0.25 percentage point rate hike could strengthen. The CME FedWatch tool puts the probability of a rate hike at 58.4 percent.
Meanwhile, Trump has issued an unusual threat to stop trade with countries that run trade surpluses against the US unless they lower interest rates. The threat, which is unrelated to the Federal Reserve’s monetary policy, has added to uncertainty over how the central bank and financial markets will respond.
India, China, the European Union and Japan are among the major trading partners running trade surpluses with the US. It remains unclear how the proposed trade restrictions would be implemented.
US average diesel prices have also climbed to a record $5.85 a gallon, adding to public concerns over the Iran conflict and Trump’s policies.
The increased possibility of higher interest rates weighed on US markets on Friday. Crude oil prices edged higher, while US Treasury yields rose.
The Dow Jones Industrial Average fell 271.86 points, or 0.51 percent, to close at 53,414.25. The S&P 500 declined 29.11 points, or 0.38 percent, to 7,718.60, while the Nasdaq Composite dropped 77.07 points, or 0.29 percent, to 26,506.99.
For the week, the Dow fell 0.3 percent, while the S&P 500 and Nasdaq gained 0.1 percent and 0.4 percent, respectively.
Tesla unveiled its Cybercab, a vehicle without a steering wheel or pedals, on Friday. The market reaction was negative, with Tesla shares falling 6 percent.
US futures were also lower this morning. Dow futures were down 162 points, or 0.30 percent, while S&P 500 futures fell 6 points, or 0.08 percent. Nasdaq futures declined 10 points, or 0.03 percent.
Asian markets were mostly higher this morning. Japan’s Nikkei rose 2.15 percent, while Australia gained 0.30 percent. South Korea’s KOSPI surged 3 percent.
Taiwan’s benchmark index gained 1.35 percent and Shanghai rose 0.40 percent. Hong Kong’s Hang Seng was marginally lower.
European markets, except Germany, ended lower on Friday. The German market gained 1.66 percent over the week, helped by developments around Volkswagen’s restructuring. A 10 percent rise in new-car sales supported the UK market’s weekly gain.
Indian equities ended slightly higher on Friday after falling for four consecutive sessions. While the benchmark indices gained, mid cap stocks remained under pressure. The market recorded a weekly decline for the fourth consecutive week.
Foreign investors remained heavy sellers, recording net sales of ₹3,111.94 crore in the cash market on Friday. Domestic funds, meanwhile, were net buyers to the tune of ₹8,930.12 crore.
Foreign investors, who had invested ₹20,200 crore in July and ₹30,919 crore in August, withdrew ₹7,443 crore from Indian equities during the first week of September.
The Sensex gained 362.57 points, or 0.48 percent, to close at 76,515.43. The Nifty 50 rose 24.25 points, or 0.10 percent, to 23,897.70. Bank Nifty declined 10.95 points, or 0.02 percent, to 57,369.65.
The Nifty Midcap 100 fell 156.15 points, or 0.25 percent, to 63,079.05, while the Nifty Smallcap 100 gained 44.70 points, or 0.22 percent, to 20,095.45.
Market breadth was positive. On the BSE, 2,388 stocks advanced against 1,991 declines. On the NSE, 2,004 stocks gained while 1,503 fell.
The pre-market trading session on the BSE and NSE will also see a minor change from today, aimed at aligning it with the closing auction session. Market and limit orders can be placed until 9.05 am. After that, only limit orders will be accepted between 9.05 am and 9.10 am. The system will close the limit-order session between 9.08 am and 9.10 am.
Gold prices fell as rate-hike fears returned. Gold declined 1 percent on Friday to close at $4,431.10 an ounce. It slipped to $4,389 this morning before recovering above $4,400.
In Keralam, 22-carat gold rose ₹960 per sovereign on Friday to ₹1,14,880. It fell ₹1,360 on Saturday to ₹1,13,520.
Silver closed at $66.30 an ounce on Friday and slipped to $65.90 this morning. Platinum was at $1,797, palladium at $1,380 and rhodium at $8,925.
Rubber prices continued to rise in international markets. RSS 1 in Bangkok climbed to $280.70 per quintal and RSS 3 to $277.20. In Keralam, rubber prices declined to ₹27,200 per quintal.
The International Rubber Study Group expects global natural rubber production at 15.28 million tonnes in the current year, against consumption of 15.36 million tonnes.
Industrial metals also gained on Friday. Copper rose 0.08 percent to $14,370.85 a tonne and aluminium gained 0.18 percent to $3,292.50. Lead, zinc, tin and nickel also advanced.
Cocoa gained 0.23 percent to close at $6,188 a tonne. Production in Ivory Coast and Ghana is expected to decline 20 percent and 13 percent, respectively, in the 2026-27 season. However, Ivory Coast’s exports rose 19 percent in August, while inventories on the ICE exchange also increased.
Arabica coffee gained 0.08 percent to $2.956 a pound, while palm oil rose 0.51 percent to 4,929 Malaysian ringgit a tonne.
The US dollar index rose to 99.18 on Friday before slipping to 99.13 this morning.
The euro weakened to $1.1615 and the pound to $1.3516. The Japanese yen weakened to 155.94 against the dollar, while the Chinese yuan stood at 6.71 to the dollar.
The yield on 10-year US Treasury bonds climbed sharply to 4.784 percent.
The rupee ended Friday largely unchanged after some volatility, with the dollar closing at ₹94.49. The dollar was also trading at ₹94.49 in the overseas forward market this morning.
The Chinese yuan was at ₹14.07 and the euro at ₹109.74.
Crude oil prices edged higher over the weekend. Brent crude closed at $96.28 a barrel and rose to $96.68 this morning. WTI crude was at $91.96.
Cryptocurrencies remained volatile over the weekend. Bitcoin slipped below $79,900, while Ether rose above $2,500 and Solana above $105.
Sensex 76,515.43 +0.48%
Nifty 50 23,897.70 +0.10%
Bank Nifty 57,369.65 -0.02%
Nifty Midcap 100 63,079.05 -0.25%
Nifty Smallcap 100 20,095.45 +0.22%
Dow Jones 53,414.25 -0.51%
S&P 500 7,718.60 -0.38%
Nasdaq 26,506.99 -0.29%
Dollar ₹94.49 ₹0.00
Gold (ounce) $4,431.10 -$43.10
Gold (sovereign) ₹1,14,880 +₹960
Saturday ₹1,13,520 -₹1,360
Brent crude $96.28 -0.76%
