Opening Bell - 12 / 01 / 2026

Opening Bell - Morning Commentary

Wall Street Hits All-Time Highs as Weak Jobs Data Fuels Rate Cut Optimism, Indian Markets Tumble on Trump Tariff Threat.

US stocks advanced in the first full trading week of 2026, with investors largely ignoring geopolitical tensions and pushing major indexes to all-time highs.

Rotation from mega-caps to cyclicals broadened market participation, while focus on President Trump's tariff policies and the Fed's rate path supported industrials and small caps.

The S&P 500 rose 1.6% last week, the Dow Jones Industrial Average surged 2.3%, and the Nasdaq Composite climbed 1.9%.

The weaker-than-expected jobs report fuelled optimism about potential rate cuts, lifting Wall Street broadly.

December nonfarm payrolls added 50,000 jobs, below the expected 60,000-70,000 and down from November's revised 56,000.

Unemployment fell to 4.4% from 4.5%, signalling a low-hiring, low-firing environment.

Housing stocks surged after President Trump announced $200 billion in mortgage bond purchases to lower rates.

Indian stock markets suffered their worst weekly loss in over three months, driven by profit-booking and global tariff concerns.

President Trump's threat of 500% tariffs on nations purchasing Russian oil rattled emerging markets, triggering risk-off sentiment and a rotation out of cyclicals.

With no domestic catalysts, investors booked profits after recent highs.

The S&P BSE Sensex dropped 2.55%, and the Nifty 50 fell 2.45% to 25,683, while the Sensex shed over 2,100 points.

A decisive break below the 100-day EMA at 25,619 could accelerate selling toward the next major support at 25,318 (November 2025 swing low).

Any recovery attempts will likely face stiff resistance in the 25,950- 26,000 zone.

Investors now await upcoming IT sector earnings and US inflation data for the next directional triggers.