Opening Bell - Morning Commentary

Tech Selloff Deepens as Nvidia Results Loom

US stocks closed sharply lower on Monday, with the S&P 500 and Nasdaq falling below key technical levels for the first time since late April.

The selloff intensified throughout the session, dragging major indices to one-month lows as valuation concerns resurfaced ahead of Nvidia's earnings.

The world's largest company by market cap fell 1.9%, leading declines and acting as the biggest drag on both the Nasdaq and S&P 500. Wednesday's after-hours earnings report looms large — results and guidance could significantly impact markets amid growing concerns about the AI bubble.

Weakness spread across big tech, with Microsoft, Apple, and Amazon all declining as retail investors showed diminished appetite for buying dips.

Concerns over US consumer health and sector rotation pressures combined with tech valuation anxiety to drive broad-based weakness

Crude oil dropped 0.68% to below $60/barrel following the resumption of Russian exports at Novorossiysk. Oversupply concerns now overshadow geopolitical risks.

Gold retreated 1.8% to near $4,011/oz as reduced Fed rate cut expectations and dollar stabilisation outweighed central bank buying support.

Japan's Q3 GDP contracted 1.8%, its first decline in six quarters, though better than the expected 2.5% drop. US markets await delayed jobs data and key retail earnings later this week.

Japanese bond yields have climbed to 17-year highs, intensifying concerns about tightening global liquidity.

Nifty rose for the sixth consecutive session yesterday with a rise of 103 points to close at 26013, marking its highest close since October 29, 2025. This gain was supported by optimism over a potential U.S.-India trade deal, highlighted by a recent LPG import contract, and improved domestic risk sentiment following a strong election performance by the ruling party.

Nifty is marching towards the crucial resistance of 26100 with a gradual rise in bullish momentum. Above 26100, Nifty could extend the rally towards a fresh all-time high above 26277. On the lower side, 25800 could offer short-term support.

Indian markets are poised to open slightly subdued today on weak global cues.