US markets tumble as rate cut hopes get delayed, S&P 500 down 1%; GIFT Nifty falls

Global Markets Outlook

US markets fall as expectations for Fed rate cuts get delayed owing to higher than expected CPI data for the month of March. The S&P 500 tumbled 1 percent to 5,157.85 and the Nasdaq Composite declined 1.03 percent to 16,133.90. The Dow Jones Industrial Average also fell 1.20 percent to 38,418.40.

While markets tumbled, bonds surged. CPI rose 0.4 percent MoM for March, and stood at 3.5 percent YoY as against February’s 3.2 percent. This ended the hopes for rate cuts in June, dragging investor sentiment and the indices lower.

The GIFT Nifty gave in to the global pressures and fell 0.72 percent to 22,636.50.

European markets edged higher despite high US CPI inflation data, with the FTSE up 0.28 percent at 7,956.98. The DAX traded 0.10 percent higher at 18,094.06

while the CAC 0.08 declined percent to 8,042.90.

Earlier during the day, Nikkei fell 0.48 percent to 39,581.81, while the Hang Seng took to green and surged 1.85 percent to 17,139.17.

The Indian indices reached new highs ahead of US CPI data release on Wednesday. The Nifty ended 0.49 percent higher at 22,753.80 and the Sensex was up 0.47 percent at 75,038.15.

DIIs net purchased Rs 163.36 crores and FIIs/FPIs net purchased Rs 2,778.17 crores.

Crude performed mixed on Wednesday, WTI was marginally down at 85.19 while Brent traded 0.02 percent higher at 89.44.