Before Market Opens: 9 essential things to know at 9 am on May 29, 2024

The Nasdaq crossed 17,000 for the first time ever on Tuesday, boosted by gains in Nvidia, while the S&P 500 closed barely higher and the Dow ended lower as Treasury yields rose. Investors awaited U.S. inflation data this week that could sway expectations for Fed rate cuts. The Dow Jones Industrial Average fell 216.73 points, or 0.55%, to 38,852.86, the S&P 500 gained 1.32 points, or 0.02%, to 5,306.04 and the Nasdaq Composite gained 99.09 points, or 0.59%, to 17,019.88.

U.S. Treasury yields pushed to a near four-week peak on Wednesday, lifting their Asia-Pacific counterparts and the dollar while pressuring equities, as data sowed new doubts about the timing and extent of Federal Reserve rate cuts. Benchmark U.S. 10-year yields ticked as high as 4.556% in Tokyo trading hours, a level not seen since May 3, following poorly received two- and five-year Treasury auctions overnight. Equivalent Japanese yields hit the highest since December 2011 at 1.065%, while Australian yields jumped to a more than three-week top at 4.42%.

Regional stock markets were mostly lower on Wednesday, with the notable exception of mainland China. Japan’s Nikkei slipped 0.4%, Australia’s benchmark dropped more than 1%, while Hong Kong’s Hang Seng tumbled 1.2%. However, mainland blue chips gained 0.3%. MSCI’s broadest index of Asia-Pacific shares dropped 0.8%. U.S. S&P 500 futures pointed 0.2% lower following a flat finish on Tuesday for the cash index.

On Tuesday, the Indian stock market benchmark equity indices ended lower, extending the losing streak for the third consecutive session.

The Sensex declined 220.05 points, or 0.29%, to close at 75,170.45, while the Nifty 50 settled 44.30 points, or 0.19%, lower at 22,888.15.

At 8:15 am, Gift Nifty was trading 38 points or 0.17 percent lower at 22,826, indicating a negative opening for the Indian markets.

Oil prices rose on Wednesday on expectations major producers will maintain production cuts at a meeting this Sunday at the same time fuel consumption should begin rising with the start of the peak summer demand season. Brent crude futures for July delivery rose 27 cents, or 0.3%, to $84.49 a barrel at 0042 GMT. U.S. West Texas Intermediate futures for July climbed 35 cents, or 0.4%, to $80.18.

Gold prices eased on Wednesday, as traders pared bets of rate cuts by the U.S. Federal Reserve this year following remarks by some policymakers, while the market awaited key U.S. inflation data due later this week. Spot gold was down 0.1% at $2,357.70 per ounce, as of 0059 GMT, U.S. gold futures were up 0.1% at $2,358.30.

The Indian rupee will decline at open on Wednesday, tracking the broad decline on Asian peers amid a rise in U.S. Treasury yields. Non-deliverable forwards indicate the rupee will open at 83.20 to the U.S. dollar compared with 83.1775 in the previous session. On Tuesday, the rupee pared initial gains to settle 5 paise lower at 83.18 against the US dollar on Tuesday amid a negative trend in domestic equities and some dollar demand from importers.

Foreign institutional investors remained net buyers on May 28 as they bought Indian equities worth ₹65.57 crore, while domestic institutional investors continued their buying as they purchased equities worth ₹3,231.67 crore on the same day.

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Published: 29 May 2024, 08:40 AM IST