News

Published: Apr 26, 2023
Updated: Apr 26, 2023

"Global Markets Brace for Impact as Recession Fears Fuel Investor Panic"

As the world reels from soft economic data and growing recession fears, investors are frantically searching for safe havens in a storm of stock market volatility. The US stock market plunged on Tuesday, with all three major indexes ending the day down 1% or more. Meanwhile, Treasury yields dropped and investors fled to gold in anticipation of upcoming economic data that could sway the Federal Reserve's policy decisions.

In India, the SGX Nifty opened lower by 32 points, or 0.18%, pointing to a negative opening for the market. However, trading in the more than 100-point range suggests the possibility of significant movement when the market opens later today. Here are some key triggers from the global market that could dictate the day's trading in India:

Asian Markets

Benchmark indexes from Japan dropped, and futures for Hong Kong equities traded lower following declines in US benchmarks. The S&P 500 slid 1.6% on Tuesday, and the Nasdaq 100 dropped 1.9%.

US Markets

The tech-laden Nasdaq plunged 2%, marking its biggest single-day slide since March 9. The S&P 500 and the Dow suffered their largest one-day percentage drops in a month.

First Republic Bank Shares Tumble 49%

First Republic Bank's stock nearly halved after it reported that customers withdrew more than $100 billion during the first quarter of the year.

Alphabet and Microsoft Earnings

Both Alphabet and Microsoft reported their earnings for the first quarter after the market closed on Tuesday. Microsoft's quarterly profit and sales topped projections, sending shares up more than 8% in late trading. Meanwhile, Alphabet's revenue and profit exceeded expectations, and the company announced a $70 billion stock buyback plan.

Gold and Crude

Gold prices gained as investors awaited upcoming economic data, adding 0.4% to $1,997.63 an ounce. Crude prices, however, plunged as economic worries and a strong dollar offset optimism over China demand expectations. U.S. crude and Brent both experienced significant drops.

Dollar Index and US Bond Yield

Bloomberg's dollar index was little changed after rallying on Tuesday, and the yield on the 10-year Treasury fell from 3.50% late Monday to 3.39%. The yield helps set rates for mortgages and other important loans.