Opening Bell - Morning Commentary

S&P 500 and Nasdaq hit record closing highs on hopes of an extended U.S.- Iran ceasefire

U.S. equities extended their rally on Thursday, with both the S&P 500 and Nasdaq 100 closing at record highs for a third consecutive session. The gains were driven by improving geopolitical sentiment after reports indicated that the U.S. and Iran are close to finalizing a deal to temporarily halt their three-month conflict.

The S&P 500 advanced 0.6%, marking its sixth straight day of gains, led by strength in healthcare and technology stocks. The Nasdaq 100 outperformed, rising 0.8%, while the Dow Jones Industrial Average edged up 0.05%.

Dell Technologies delivered strong earnings beat post-market, with shares surging over 20% in extended trading. The company also issued an upbeat outlook, highlighting robust demand for AI-driven data center infrastructure, particularly its Nvidia-powered servers.

On the macro front, U.S. economic data presented a mixed picture. Inflation-adjusted consumer spending climbed 0.1% in April, in line with expectations. Core PCE prices in April rose 0.2% for the month and 3.3% for the year, against estimates of 0.3% and 3.3%, the Commerce Department reported Thursday.

U.S. initial jobless claims increased by 5,000 to a seasonally adjusted 215,000 for the week ending May 23, 2026, according to the U.S. Department of Labor. The US economy also grew at a slower-than-expected pace in the first quarter, with GDP expanding at an annual rate of 1.6%, short of economist forecasts for 2% growth and down from 2% in the prior quarter.

Energy markets saw a significant shift as benchmark U.S. crude prices dropped from nearly $93 to approximately $88 per barrel. The drop reflects easing supply concerns amid progress in U.S.-Iran ceasefire negotiations, which could help stabilize global energy markets.

Asian markets traded higher on Friday, tracking the positive global sentiment and optimism surrounding geopolitical developments.

On the domestic front, Wipro has announced an expanded partnership with ServiceNow to implement and scale agentic AI workflows across core enterprise functions. The collaboration aims to reduce manual coordination, improve operational visibility, and accelerate execution at enterprise scale. Wipro ADR surged over 18% yesterday on Wall Street.

Out of the Nifty pack, Asian Paints and IndiGo are scheduled to announce their quarterly and annual results today.

Indian markets ended Wednesday on a muted note. The Nifty 50 slipped marginally by 6 points to close at 23,907, extending its losing streak to a second session. Broader markets continued to outperform, with midcap and smallcap indices posting gains, supported by positive market breadth.

Indian markets are expected to open subdued as they are likely to absorb global cues of last two days. Technically, immediate support for the Nifty is seen at 23,800, aligned with the 20-day EMA and prior breakout zone, with a stronger base near 23,600. On the higher side, recent swing high of 24100 is likely to act as an immediate resistance.