Opening Bell - 11 / 03 / 25

Stock Market Updates

Opening Bell - Morning Commentary

Wall Street Plunges as Recession Fears Intensify

U.S. stocks tumbled Monday amid ongoing tariff conflicts and growing concerns about a potential federal government shutdown, fueling worries that the U.S. economy might be heading toward a recession. Weaker consumer sentiment, slower consumer spending, and tariff risks continue to weigh on the growth outlook.

US stocks are also under pressure from a stronger Japanese yen and a spike in bond yields, as investors unwind yen carry trades on expectations of an upcoming interest rate hike in Japan.

The Federal Reserve Bank of Atlanta's GDPNow estimate for first-quarter real GDP growth declined last week to -2.4%, down from 2.3% in late February.

The S&P 500 had its biggest one-day drop since December 18 and Nasdaq slid 4.0%, its biggest single-day percentage drop since September 2022. The bellwether S&P 500 closed below its 200-day moving average, for the first time since November 2023.

Asian shares dropped for the third day in a row Tuesday as worries grow that tariffs and government changes could hurt growth in the U.S. economy.

The Indian rupee weakened, depreciating by 46 paise to settle at 87.33 against the US dollar. This decline was attributed to concerns surrounding global trade and the fall in equity markets.

Nifty ended its three-session winning streak yesterday and dropped 0.4% to close at 22460. Following last week's rebound, the mid and small-cap segments experienced significant profit-taking.

Support for Nifty is observed in the range of 22200-22245, while resistance is seen near 22700 for the short term.

Indian markets are expected to open approximately half a percent lower, which is a relatively modest decline given the significantly weaker global market conditions. The Indian markets experienced a sharp drop yesterday while most Asian markets gained ground, suggesting they may have already factored in some of the global market downturn yesterday ahead of time.