Market Commentary - Foreign Markets
US equities rebound with good gains As on : 07-Aug-24  11:17

US stock indices edged higher on Tuesday after a rout in global markets on Monday. The S&P 500 and the Nasdaq added 1% each and the Dow Jones rose 0.76% as investors took a pause from recession fears. Major indices had lost more than 2.5 per cent on Monday in a move seen as a reflection of worries about a US economic recession. All the sectors ended in the green, with real estate and technology leading the gains. Among mega caps, Nvidia rose 4.3% after losing 6.4% in Monday's session, Microsoft gained 1.1%, Meta advanced 3.8% and Tesla added 0.9%.

Investors' sentiments were lifted by dovish comments from the Federal Reserve policymakers. They pushed back against the notion that weaker-than-expected July jobs data means that the US economy is slipping into recession. They also warned that interest rate cuts will be needed to avoid such an outcome.

US benchmark treasury yields climbed to 3.9% while dollar index recovered above 103 mark. Caution surrounding the Middle Eastern conflict between Iran and Israel is also backing the dollar gains. Investors are awaiting incoming data from Fed to assess its narrative going forward.

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