Opening Bell - Morning Commentary

Wall Street Surges on Trump's Dovish Davos Turn

Wall Street surged on Wednesday, with the S&P 500 posting its largest one-day gain in two months after President Trump announced a framework agreement on Greenland and cancelled planned tariffs for February 1st on European nations.

Major indices rallied sharply: the Dow jumped 588 points (1.2%), while the S&P 500 and Nasdaq each rose 1.2%, reversing Tuesday's worst selloff since October. The rebound followed Trump's Davos remarks, ruling out military force against Greenland and scrapping threatened European tariffs.

Markets removed the tail risk of U.S.-NATO confrontation. The dollar strengthened while Treasury yields fell, with the 10-year note declining to 4.25%.

The European Union's legislative body halted work on the formal approval and implementation of the trade deal it reached last summer with President Donald Trump.

Gold retreated from its record high of $4,887 per ounce to around $4,840 as geopolitical tensions eased, though the precious metal remains up 8.59% month over month and 75.18% year over year. Silver dropped 1.6% as risk appetite returned to equities.

Netflix plunged in after-hours trading despite beating Q4 revenue and earnings expectations. Investors focused on slowing subscriber growth and weak forward guidance, overlooking the company's 325 million subscriber milestone. Netflix also announced it would pause buybacks to finance its acquisition of Warner Bros. Discovery.

The Indian Rupee fell 72 paise to a record low of 91.69 against the US Dollar yesterday—its steepest single-day decline in two months.

The currency faces pressure from aggressive foreign capital outflows and delays in a U.S. trade deal, while heightened geopolitical uncertainty continues to accelerate depreciation despite central bank interventions.

Nifty declined for a third consecutive session, dropping 75 points to close at 25,157. The index held above its 200-day SMA (25,124), with yesterday's low of 24,919 now serving as support. The 25,470-25,500 band will continue to act as strong resistance.

Indian equity markets are poised to open on a positive note, buoyed by robust global sentiment and growing optimism surrounding a potential India-US trade agreement.