Markets diverged sharply on Friday as U.S. indices edged higher while India’s stock market saw a steep selloff. Dow futures rose modestly after President Trump played down tensions with Fed Chair Jerome Powell, while Nifty 50 dropped below 24,850 in a sharp correction.
U.S. markets today: Steady gains on earnings, trade optimism
Stock futures ticked up early Friday:
- Dow Futures (YM=F): +0.12%
- S&P 500 Futures (ES=F): +0.10%
- Nasdaq 100 Futures (NQ=F): +0.01%
Key drivers:
- President Trump visited the Federal Reserve Thursday, calming speculation over Jerome Powell’s job security.
- Trump said he “wasn’t considering” firing Powell and hopes the Fed will still cut interest rates.
- Intel beat earnings expectations but warned of layoffs, sparking volatility in after-hours trading.
- Google (GOOG) helped lift the S&P 500 to another record high Thursday on strong AI-driven results.
- Oil prices rose on trade optimism and economic recovery hopes, with Brent up 0.42%.
Global markets: India’s Sensex plunges, Nifty slips below 24,850
In stark contrast, India’s Sensex fell more than 700 points, and the Nifty 50 dropped below 24,850. Here are five factors behind the sell-off:
- Profit booking after Nifty hit all-time highs earlier this week
- Weak global cues, including cautious Fed signals and trade uncertainty
- Rising bond yields in India, pressuring equity valuations
- Heavy selling in banking and IT stocks
- FII outflows, as global investors rotate back to U.S. large caps
The correction comes despite strong earnings from Indian conglomerates, suggesting investor nervousness around broader economic signals.
What’s next: Key earnings and trade deadlines
Investors are watching several big events next week:
- Apple, Microsoft, Meta, and Amazon are set to report earnings
- August 1 trade deadline: Trump’s tariffs on EU goods loom, unless deals are reached
- Rate cut speculation: Markets are pricing in possible Fed action before fall
Quick takeaways
- U.S. markets remain stable as earnings boost sentiment despite political noise
- India faces a sharp pullback amid global risk rebalancing
- Oil, tech, and trade developments remain key catalysts going into next week