Before Market Opens: 9 essential things to know at 9 am on April 26, 2024

Wall Street stocks closed lower on Thursday as markets were stunned by data showing slower-than-expected U.S. economic growth and persistent inflation, coupled with a sell-off in large cap stocks triggered by disappointing results from Meta Platforms. Data on Thursday showed that the U.S. economy grew at its slowest pace in nearly two years in the first quarter while inflation accelerated, dampening hopes that the Federal Reserve would begin cutting interest rates this year. The Dow Jones Industrial Average fell 375.12 points, or 0.98%, to 38,085.80, the S&P 500 lost 23.21 points, or 0.46%, to 5,048.42 and the Nasdaq Composite lost 100.99 points, or 0.64%, to 15,611.76.

Asian shares rose cautiously on Friday as markets sobered up to the idea that U.S. rate cuts were most likely some time away, while the yen and Japanese government bonds struggled ahead of a closely watched policy decision by the Bank of Japan. The highlight of the Asia day was on the BOJ’s rate decision at the conclusion of its two-day monetary policy meeting, as well as Governor Kazuo Ueda’s news conference thereafter. In stocks, Japan’s Nikkei edged a marginal 0.02% higher. MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.27%, while Australia’s S&P/ASX 200 index fell more than 1%. Hong Kong’s Hang Seng Index gained 0.3%.

On Thursday, the Indian stock market benchmarks indices ended higher for the fifth consecutive session despite weak global cues. The Sensex rallied 486.50 points, or 0.66%, to close at 74,339.44, while the Nifty 50 settled 167.95 points, or 0.75%, higher at 22,570.35.

At 8:15 am, Gift Nifty was trading 13 points or 0.06 percent higher at 22,686, indicating a positive opening for the Indian markets.

Oil prices rose in early trade on Friday, as players took stock of the U.S. Treasury secretary’s comments that the country’s economy is likely in a stronger position than indicated by weak first-quarter data, coupled with supply concerns as conflict continues in the Middle East. Brent crude futures gained 34 cents, or 0.38%, to $89.35 a barrel at 1211 GMT, and U.S. West Texas Intermediate crude futures rose by 33 cents, or 0.39%, to $83.90 a barrel.

Gold prices edged lower on Friday and were set for a weekly decline as investor attention turned to key U.S. inflation data for cues on the Federal Reserve’s interest rate trajectory. Spot gold dipped 0.1% to $2,331.15 per ounce as of 0136 GMT. Prices are down nearly $100 from the all-time high of $2,431.29 scaled on April 12, fuelled by geopolitical turmoil. Bullion prices are down 2.5% so far for the week. U.S. gold futures were unchanged at $2,343.50 per ounce.

The US economy grew last quarter at the slowest pace in two years. The US gross domestic product (GDP) increased at a 1.6% annualized rate in January-March 2024, missing Wall Street expectations of a larger 2.4% rise seen in the quarter-under-review. The growth was also a slowdown from the 3.4% increase in the final three months of last year. Meanwhile, US inflation, as measured by the personal consumption expenditures (PCE) price index, came in at 3.7% in the first quarter, above expectations for a 3.4% increase and well above the US Federal Reserve’s 2% target.

The Indian rupee is expected to open little changed on Friday, despite a pick-up in U.S. inflation which spurred a rise in U.S. Treasury yields and further reduced the likelihood of imminent Federal Reserve rate cuts. Non-deliverable forwards indicate the rupee will open at 83.30-83.32 to the U.S. dollar, compared with its close of 82.3150 in the previous session. The 10-year U.S. yield rose to the highest since November and the 2-year yield topped 5% on Thursday after data showed that a measure of inflation rose more than expected.

Foreign institutional investors (FIIs) net sold ₹2,823.33 crore shares, while domestic institutional investors (DIIs) pumped in ₹6,167.56 crore on April 25, provisional data from the NSE showed.

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Published: 26 Apr 2024, 08:26 AM IST