Global Market Cues: Wall Street Slumps on Inflation Heat, GIFT Nifty Hints at Soft Start for Indian Equities

Indian equity markets are bracing for a subdued opening, tracking mixed global cues as the GIFT Nifty trades lower by over 70 points. While Asian markets present a fragmented picture—with South Korean and Taiwanese indices holding ground while Japanese equities face downward pressure—investors worldwide are digesting a weak overnight session on Wall Street driven by hotter-than-expected inflation metrics.

Wall Street Pulls Back as Inflation Data Weighs on Sentiment

US stock markets finished Wednesday's session in the red as persistent inflation concerns pressured risk appetite. The Dow Jones Industrial Average shed 113.52 points (0.21%) to close at 53,463.88, the S&P 500 dipped marginally by 0.02% to 7,675.70, and the tech-heavy Nasdaq Composite slipped 0.08% to 26,130.20.

Despite the broader market pullback, US stock index futures rebounded into positive territory following stellar quarterly scorecards from tech behemoths Nvidia and Salesforce. Nvidia's fiscal second-quarter revenue crossed $96.22 billion against expectations of $92.17 billion, with adjusted EPS coming in at $2.22, sending its shares up nearly 4% on robust forward guidance. Salesforce also outperformed consensus expectations, providing a vital cushion for index futures.

Strait of Hormuz Tension and Commodity Dynamics

In the energy sector, crude oil prices remained relatively steady with Brent crude hovering near $88 per barrel and WTI holding above $82 per barrel. Geopolitical developments in West Asia remain in sharp focus; although reports indicated an agreement between Iran and Oman regarding revenue-sharing and transit routes across the Strait of Hormuz, tanker traffic continues to experience severe disruptions. Kpler shipping data highlighted that only five vessels navigated the strategic strait on Tuesday, well below the standard 10-day average of 15 ships.

Precious Metals Soften Ahead of Jackson Hole Symposium

Gold prices faced downward pressure as stronger inflation readings and shifting expectations regarding central bank interest rate trajectories reduced safe-haven demand. Spot gold dropped 1.3% to $4,595.93 per ounce, while US gold futures settled 0.9% lower at $4,653.30.

All eyes are now locked on the annual Jackson Hole Economic Policy Symposium

, which kicks off today. Market participants will closely scrutinize remarks from Federal Reserve Chairman Kevin Warsh for policy direction, alongside incoming US weekly jobless claims, trade balance figures, and corporate earnings reports from Marvell Technology, Dollar General, and Dollar Tree.