Opening Bell - 12 / 03 / 25

Stock Market Updates

Opening Bell - Morning Commentary

Shifting Sands - Markets Navigate Trump's Tariff Flip-Flop and Ukraine Ceasefire Prospects

U.S. stocks declined Tuesday, extending the most significant selloff in months, as investors grappled with concerns about how the latest tariff threats might impact the global economy.

Markets experienced volatility amid contradictory tariff announcements, though progress toward a Ukraine-Russia ceasefire temporarily buoyed equities.

President Donald Trump abruptly reversed his position Tuesday afternoon, abandoning a plan announced just hours earlier to double tariffs on Canadian steel and aluminum to 50%. The reversal followed a Canadian official's own retreat from plans to impose a 25% surcharge on electricity exports.

The euro climbed to five-month highs Wednesday on news of Ukraine's willingness to accept a month-long ceasefire, while European stocks fluctuated wildly amid the back-and-forth U.S. tariff proposals and growing concerns about an American economic slowdown.

Reaching its highest level since October during New York trading at $1.0947, the euro held steady at $1.0913 during the Asian session. Meanwhile, Russia's ruble strengthened to a seven-month high overnight.

The S&P 500 recorded its most significant one-day drop since December 18, wiping out just over $1.3 trillion in market value, and a staggering $4 trillion from its recent peak. The tech-heavy Nasdaq confirmed a 10% correction late last week.

The Nifty index staged a remarkable recovery Wednesday, erasing steep early losses to finish in positive territory. After plunging to 22,314 in the opening minutes of trading, the benchmark index rallied over 200 points throughout the session, ultimately closing at 22,497—a gain of 37 points or 0.17%. The Nifty Midcap Index showed even greater resilience, rebounding from morning lows to close 0.67% higher.

This recovery from lower levels strengthens the possibility of forming a higher bottom in the short term. A move above 22,700 would confirm a bullish trend reversal for the Nifty, potentially propelling the index toward the 23,000 mark. Support has now shifted upward to approximately 22,300. Indian markets are likely to open mildly lower today on back of softer global cues.