S&P 500, Nasdaq hit new highs as flat CPI fuels rate cut hopes; GIFT Nifty up

Global Markets Outlook

US markets rallied to record high levels on June 12 after the May CPI inflation came in tad below expectations at 3.3 percent year-on-year as against the 3.4 percent Reuters estimates. The CPI grew at the slowest pace in three years, with core prices up 3.4 percent year-on-year, as against the 3.5 percent prediction. Investors now await the Federal Reserve’s decision on interest rate cuts, to be released later today after the completion of the FOMC’s two-day policy meeting.

The benchmark S&P 500 hit a new record high of 5,446.28 during the day and surged 1.14 percent to 5,437 at 9:15pm IST. The Nasdaq Composite also created a new high of 17,677.57 and traded nearly 2 percent higher at 17,655. The Dow Jones Industrial Average was up 0.24 percent at 38,841.15.

The GIFT Nifty traded 0.37 percent higher at 23,455.50, after the Indian indices surged to new highs earlier during the day.

Indian indices saw an intraday rally on Wednesday ahead of the Fed decision. Nifty reached a new all-time high of 23,441.95 and ended a quarter percent higher at 23,323.55. The Sensex also traded positive, up 0.20 percent at 76,606.57.

The European indices edged higher owing to strong global cues with the FTSE up 0.83 percent at 8,215.48. The DAX surged 1.5 percent to 18,644.27 and the CAC ended nearly a percent higher at 7,864.70.

However, earlier during the day, the Asian indices traded negative. Nikkei ended 0.66 percent lower at 38,876.71 and the Hang Seng was down 1.31 percent at 17,937.84.

DIIs net purchased Rs 233.75 crores in Indian equities and the FIIs/FPIs broke their selling streak to net purchase Rs 426.63 crores.

Crude rose for a third day in a row, up 0.22 percent at $78.07. Brent also traded 0.28 percent higher at $82.15.