S&P 500 takes relief from 2-day losses as US Fed’s Powell ends rate hike worries; GIFT Nifty gains

The US markets showed optimism on May 2 after two days of losses as Federal Reserve chairman Jerome Powell ruled out the possibility of rate hikes, ending the uncertainty gripping the markets. On Wednesday, Powell also put investors at ease from the worries of quantitative tightening, by announcing slower balance sheet reduction.

Owing to the positive cues, the S&P 500 was up 0.17 percent at 5,026.65, and the Nasdaq Composite edged 0.36 percent higher to 15,661.32. The Dow Jones Industrial Average also traded positive, up 0.26 percent at 38,000.68.

The indices traded higher despite the weak performances of earnings reports. This came as the Federal Reserve’s decision to keep interest rates unchanged, which stayed in line with the market expectations, pulled the markets into green.

The GIFT Nifty was marginally up 0.08 percent at 22,802.00.

European markets traded mixed over wavering foreign investment inflows. The FTSE was up 0.62 percent at 8,171.86 while the DAX traded flat-to-negative at 17,924.78. The CAC was also down 0.68 percent at 7,930.99.

Earlier during the day, the Asian markets traded mixed. The Nikkei ended flat-to-negative at 38,236.07, dragged by the Marine transport, Glass and Steel sectors. On the other hand, the Hang Seng moved 2.50 percent higher to 18,207.13 as tech stocks rallied.

The Indian indices also traded positive owing to strong global cues. The Nifty ended 0.19 percent higher at 22,648.20 and the Sensex was up 0.17 percent at 74,611.11.

DIIs net purchased Rs 1,352.44 crores while the FIIs/FPIs net sold Rs 964.47 crores.

Crude traded mixed ahead of OPEC meeting, WTI Crude was down 0.13 percent at $78.90 while the Brent traded 0.08 percent higher at $83.51.