Opening Bell - Morning Commentary

Nasdaq Pulls Back Sharply as Nvidia Slumps, but Dow Inches Higher.

The benchmark S&P 500 and European equities finished lower as investors digested another blowout quarter from Nvidia — the world's most valuable company — yet remained uneasy about its valuation even as the chipmaker forecast first-quarter revenue of $78 billion.

The retreat on Wall Street was driven largely by a negative reaction to Nvidia's earnings, with the AI chipmaker tumbling 5.5%. Despite reporting better-than-expected fiscal fourth-quarter results and issuing upbeat guidance, Nvidia failed to satisfy elevated investor expectations, dragging semiconductor stocks lower and souring broader market sentiment.

The Dow's modest gain was cushioned by a sharp rise in Salesforce shares, which surged 4% after the customer relationship software maker reported better-than-expected fourth-quarter results.

Diminishing case for an early easing

The path for Federal Reserve chair nominee Kevin Warsh to deliver the swift rate cuts President Donald Trump has called for appears to be narrowing. Emerging economic resilience — rising CEO confidence, investor positioning around a hawkish shift among Fed policymakers — is complicating the case for early easing.

The IMF reinforced this view on Wednesday, noting that with U.S. growth expected to reach 2.4% this year from 2.2% last year, unemployment hovering near 4%, and inflation declining gradually, the Fed would have "only modest scope to lower the policy rate over the coming year" — likely just a single quarter-percentage-point cut.

Tech heavy asian indices fell in tandem with the NASDAQ

A global equity index retreated after touching a record high on Thursday, as lofty technology valuations weighed on sentiment following Nvidia's results.

In currency markets, the US Dollar Index recovered to 97.9, with the greenback gaining 0.5% against the British pound amid speculation of a March Bank of England rate cut

Tech-heavy indices in Japan and South Korea fell in tandem with the Nasdaq, reflecting deepening concerns about the sustainability of the AI-driven rally.

Nifty spent yesterday's session within a narrow 170-point range throughout the day, with low volatility, barring a couple of intraday swings.

Nifty remained directionless, with no momentum on either side. A band of 25650-25700 would remain an immediate hurdle, while 25250-25350 could offer support for Nifty in the short term. A breakout from this range could finally provide the catalyst for a sustained move.

Indian markets are poised to open subdued on softer global cues.