6 things that changed for the stock market overnight

Asian markets traded mostly lower and US stocks gained overnight while treasury yields rose on expectations that US inflation will remain high.

The domestic benchmark indices ended Wednesday’s volatile session marginally higher amid mixed global cues.

The Sensex closed 92.47 points, or 0.14%, higher at 66,023.24, while the Nifty 50 settled 28.45 points, or 0.14%, higher at 19,811.85.

“Overall, the market is likely to remain lacklustre and consolidate in a range in the absence of any major events, and start of holiday season,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.

Also Read: Buy or sell: Vaishali Parekh recommends three stocks to buy today — November 23

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded in a narrow range on Thursday after US stocks gained while Treasuries fell on data showing US consumers expect inflation to persist.

Japan’s markets are shut for a public holiday. South Korea’s Kospi rose 0.18%, while Kosdaq rose 0.16%.

Hong Kong’s Hang Seng index futures were lower at 17,692 compared with the HSI’s close of 17,734.6.

Australia’s S&P/ASX 200 fell 0.58%.

Meanwhile, Gift Nifty was trading around 19,891 levels as against Nifty futures’ previous close of 19,887, indicating a flat start for the Indian benchmark indices.

Also Read: Stocks to Watch: Honasa Consumer, Welspun Corp, InterGlobe Aviation, TVS Motor

Wall Street

US stock market indices ended higher on Wednesday amid optimism that the US Federal Reserve may not hike interest rates further and that the economy is still resilient.

The Dow Jones Industrial Average rallied 184.74 points, or 0.53%, to 35,273.03, while the S&P 500 rose 18.43 points, or 0.41%, to 4,556.62. The Nasdaq Composite ended 65.88 points, or 0.46%, higher at 14,265.86.

The yield on benchmark 10-year notes rose 1.3 basis points (bps) to 4.431%. The two-year’s yield, which reflects interest rate expectations, rose 5.1 bps to 4.934%. 

Among stocks, Nvidia share price declined 2.5% after the chip designer warned US export curbs could lead to a steep drop in sales in China while it forecast overall fourth-quarter revenue above Wall Street targets.

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Deere & Co shares fell 3.1% after the farm equipment maker forecast 2024 profit below analysts’ estimates.

The US stock market and bond markets will remain closed on Thursday for the Thanksgiving holiday.

US jobless claims

The number of Americans filing new claims for unemployment benefits fell more than expected last week. Initial claims for state unemployment benefits dropped 24,000 to a seasonally adjusted 209,000 for the week ended November 18. Economists polled by Reuters had forecast 226,000 claims for the latest week.

Though the weekly jobless claims report from the Labor Department also showed unemployment rolls declining for the first-time since mid-September, they remained near the highs for this year.

Nvidia shares drop

Nvidia share price dropped 2.46% to $487.16 on Wednesday after the company’s downbeat China sales outlook. The company had a day before reported revenue well above Wall Street expectations, but said it expects a steep drop in fourth-quarter sales in China – a key revenue generator – in the wake of new US rules.

Nvidia forecast adjusted gross margins of 75.5% for the fourth quarter, above analyst estimates of 72.64%. Nvidia forecast current-quarter revenue of $20 billion, plus or minus 2%.

Also Read: Dividend stocks: Amrutanjan Health Care, Premco Global, Procter & Gamble Health shares to trade ex-dividend today

Nvidia is set to take a hit from the vastly expanded US export controls on what the company can sell to China. Sales of the affected chips made up nearly a quarter of Nvidia’s datacenter sales in the past few quarters, Reuters reported.

“Export controls will have a negative effect on our China business, and we do not have good visibility into the magnitude of that impact even over the long term,” Chief Financial Officer Colette Kress said.

Oil prices plunge

Crude oil prices plunged 4% on Wednesday after the Organisation of Petroleum Exporting Countries and its allies (OPEC+) unexpectedly delayed the policy meeting planned for Sunday, raising questions about the future course of crude production cuts. 

Brent crude was trading 0.59% lower at $81.96 a barrel, while US West Texas Intermediate crude fell 0.56% to $76.67 a barrel.

Read here: Oil prices slump 4% after OPEC+ postpones output policy meeting to November 30; Brent drops to $79/bbl

US inflation expectations rises

US consumer inflation expectations rose for a second straight month in November, according to a survey released Wednesday that may create some worry for Federal Reserve policymakers.

American households see inflation accelerating to 4.5% over the next year, up from 4.2% in October and from 3.2% in September, the University of Michigan’s twice-monthly survey of consumer sentiment showed. That is the highest rate since April, Reuters reported.

(With inputs from Reuters)

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Updated: 23 Nov 2023, 07:17 AM IST

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