The Sensex and Nifty 50 are likely to open lower on Friday as investors turn cautious ahead of US Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole Economic Symposium, amid mixed overnight global market cues.

Asian markets traded mixed, while the US stock market closed lower overnight, with all three benchmark Wall Street indices posting losses.

However, on Thursday, the Indian stock market extended its rally for the sixth straight session, with both benchmark indices closing higher.

Domestic Market Recap

On Thursday, Indian indices closed in the green:

• Sensex surged by 142.87 points (0.17%) to close at 82,000.71
• Nifty 50 moved up by 33.20 points (0.13%) to settle at 25,083.75

Gift Nifty

Gift Nifty was trading near 25,095, around 27 points lower than the previous Nifty futures close, hinting at a lacklustre start for Indian markets.

Wall Street Performance

The US stock market closed lower on Thursday as investors grew cautious, fearing hawkish comments from Federal Reserve Chair Jerome Powell at the Jackson Hole Economic Policy Symposium.

• The Dow Jones Industrial Average slumped by 152.81 points (0.34%) to close at 44,785.50.
• S&P 500 down by 25.61 points (0.40%), ending at 6,370.17.
• The Nasdaq Composite was trading lower by 72.54 points (0.34%), finishing at 21,100.31.

Crude Oil Prices

• Brent crude slumped by 0.25% to $67.50/barrel
• US West Texas Intermediate (WTI) crude was trading 0.24% lower at $63.37/barrel

Gold Prices1

Gold prices remained steady on Friday as investors awaited Jerome Powell’s speech at the Jackson Hole symposium. Spot gold traded at $3,337.12 per ounce, while US gold futures for December delivery held flat at $3,380.30.

Overnight Major Global Events Driving Sentiment

1. US Existing Home Sales: US homebuyers unexpectedly boosted purchases in July, with existing home sales rising 2% to a seasonally adjusted annual rate of 4.01 million units, up from 3.93 million in June.
2. US PMI: US business activity gained momentum in August, driven by a rebound in manufacturing. S&P Global reported that its flash Composite PMI Output Index, which tracks both manufacturing and services, climbed to 55.4, which is the highest since December from 55.1 in July.
3. US Jobless Claims: More Americans filed for unemployment benefits last week, marking the sharpest increase in nearly three months. Initial jobless claims rose by 11,000 to a seasonally adjusted 235,000 for the week ending August 16, the biggest jump since late May.
4. Japan Inflation: Japan’s core inflation eased for the second consecutive month in July but remained above the Bank of Japan’s 2% target. The nationwide core consumer price index (CPI), excluding fresh food, increased 3.1% year-on-year, compared with a 3.3% rise in June.

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