Opening Bell - Morning Commentary

Wall-Street selloff - Biggest one-day drop in three months

All ​the three major Wall Street indexes ended Tuesday with their biggest one-day drops in three months, in a broad selloff triggered by concerns that fresh tariff threats from President Donald Trump against Europe could signal renewed market volatility.

U.S. stocks tumbled Tuesday as President Trump threatened tariffs on nations opposing Greenland's acquisition.

The Dow dropped 871 points or 1.8%, while the Nasdaq fell 2.4% and the S&P 500 declined 2.1%. All Magnificent Seven tech stocks lost at least 1.1%.

The dollar weakened and Treasury yields climbed to August highs.

Precious metals reached historic levels as safe-haven demand intensified amid trade tensions.

Gold exceeded $4,700 per ounce for the first time, gaining 2.9%, while silver surpassed $95 per ounce. Investors fled risk assets following Trump's escalating tariff rhetoric and renewed European trade conflict concerns, boosting safe haven flows.

The U.S. Dollar Index tumbled to 98.44, down nearly 1%, marking its largest decline since Trump's April Liberation Day tariff announcement. The dollar's weakness against major currencies reflected growing investor concerns about prolonged geopolitical uncertainty and potential retaliation from European allies.

Back home, the Nifty crashed 353 points (1.38%) to close at 25,232.50, while the BSE Sensex tumbled 1,066 points (1.28%) to 82,180.47, marking their lowest levels since mid-October 2025.

This represents the steepest single-day decline in last 9 months, as US President Donald Trump's renewed tariff threats over Greenland rattled global markets and triggered widespread selling pressure.

The index decisively breached the crucial swing low at 25,473 during the session and is now placed close to the 200-day EMA (25,160) and SMA (25,113), major technical supports.

A break below these 200 day average levels could trigger further selling toward the 24,800-24,900 support zone, while the 25,470-25,500 will interchange its role as resistance on any pullback attempts.