Market Analysis Today
Apr 05 2024Market Action – Friday, April 5th 2024
# Wall Street had spent most of Thursday in positive territory thanks to strong gains in several mega-cap names. However, the main indexes took a nosedive in the final hour of the session as anxiety ramped up ahead of Friday`s release of the March nonfarm payroll report.
Gift Nifty in early action is treading water as all eyes will now be on the biggest catalysts of the day: RBI Policy decision to be wired at 10: AM.
GLOBAL UPDATE:
# GIFT Nifty 🇮🇳: (-77, 22570)
# Dow Future (+20, 38605)
# Nikkei (-784, 38984)
# Hang Seng (+63, 16787)
# Dow Jones (-530, 38597)
# Nasdaq (-228, 16049)
# Bovespa (+110, 127428).
WHAT EXACTLY HAPPENED AT WALL STREET IN OVERNIGHT TRADE:
# The trading theme also revolved around comments from Minneapolis Fed President Neel Kashkari who also poured cold water on the Wall Street’s morning momentum.
In an interview with Pensions and Investments Magazine, the central bank official wondered if it`s even necessary to cut interest rates with the economy as strong as it is. "If we continue to see inflation moving sideways, it would make me question whether we needed to do those rate cuts at all," Kashkari said.
# Earlier on Wednesday, Powell said "We do not expect that it will be appropriate to lower our policy rate until we have greater confidence that inflation is moving sustainably down toward 2%,"
And given how strong the economy remains and how far inflation has fallen, the Fed has time "to let the incoming data" guide its policy decisions, the chairman added. However, Powell did say that rate cuts will likely be appropriate "at some point this year."
# As for the main US indexes, Dow Jones Industrial Average finished the day down 1.4% at 38,596, the S&P 500 was 1.2% lower at 5,147, and the Nasdaq Composite had shed 1.4% to 16,049.
Securities in Ban For Trade Date 05-APR-2024:
1 HINDCOPPER
2 SAIL
3 ZEEL