US markets are little changed ahead of PCE data, chip stocks drag, S&P 500 trades flat-to-negative; GIFT Nifty up

Global Markets Outlook

The US markets traded flat on June 27 as chipmaker and semiconductor stocks dragged. Major stocks such as Nvidia and Micron Technology tumbled up to 7 percent. At 9:30pm IST, the S&P 500 traded flat-to-negative at 5,475. However, the Nasdaq Composite edged 0.16 percent higher at 17,833 and the Dow Jones Industrial Average was up 0.21 percent at 39,211.

Investors now await the US Personal Consumption Expenditure (PCE) Index data for May which will be released this Friday. As per the Dow Jones estimates, the Fed’s preferred measure of inflation is expected to rise 0.1 percent month-over-month and 2.6 percent year-on-year.

The GIFT Nifty edged 0.15 percent higher to 24,171 after the Indian markets’ rally earlier during the day.

Indian indices extended their bullish run for another day owing to massive foreign portfolio investments flowing in and the strong performance of major IT stocks. Nifty crossed the 24,000 mark for the first time. The index reached a fresh all-time high of 24,087.45 during intraday trade and ended 0.74 percent higher at 24,044.50. Sensex created a new record high of 79,396.03 during intraday trade and ended 0.72 percent higher at 79,243.18.

FPIs/FIIs massively net bought Rs 7,658.77 crores in Indian equities and DIIs net sold Rs 3,605.93 crores.

The European markets declined on Thursday amid inflation worries. FTSE fell 0.55 percent to 8,179.68 and CAC dragged over 1 percent to 7,530.72. However, the DAX traded 0.30 percent higher at 18,210.55.

Earlier during the day, the Asian indices also ended lower. Nikkei fell 0.82 percent to 39,341.54 and the Hang Seng tumbled 2.06 percent to 17,716.47.

Crude continued to rise, up 0.33 percent at $81.17. Brent also edged 0.49 percent higher to $85.67.