Key Developments Overnight: US-Iran Peace Tensions, Crude Oil Prices, and Their Impact on Indian Stock Market

Indian Stock Market Expected to Open on a Positive Note Friday

The Indian stock market benchmark indices, Sensex and Nifty 50, are anticipated to open with a positive tone on Friday, following gains in global markets. Investors are hopeful for a US-Iran peace deal to bring an end to the war in the Middle East. Asian markets have traded higher, while the US stock market gained overnight, with the Dow Jones posting a record closing high.

On Thursday, the Indian stock market closed lower, weighed down by profit booking in select index heavyweights. The Sensex declined 135.03 points, or 0.18%, to close at 75,183.36, while the Nifty 50 settled 4.30 points, or 0.02%, lower at 23,654.70. Experts continue to maintain a cautious stance on the index, recommending a stock-specific trading approach while maintaining balanced exposure on both the long and short sides.

Global Market Cues for Sensex Today

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Asian markets traded higher on Friday, following overnight gains on Wall Street, amid hopes of a US-Iran peace deal. Japan's Nikkei 225 rallied 1.36%, while the Topix rose 0.55%. South Korea's Kospi gained 0.52%, while the Kosdaq Index jumped over 3%. Hong Kong's Hang Seng index futures indicated a higher opening.

Wall Street Performance

The US stock market ended slightly higher amid hopes of progress in the US-Iran peace talks. The Dow Jones Industrial Average gained 276.31 points, or 0.55%, to 50,285.66, marking a record closing high. The S&P 500 rose 12.75 points, or 0.17%, to 7,445.72, and the Nasdaq Composite gained 22.74 points, or 0.09%, to 26,293.10.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Key Performers in the US Stock Market

Nvidia stock price fell 1.77%, while Amazon shares rallied 1.30%. Microsoft share price eased 0.47%, Apple stock price rose 0.91%, IBM shares jumped 12.4%, and Tesla stock price added 0.14%.

US-Iran Peace Talks

The US and Iran are engaged in indirect talks aimed at developing a framework for a possible agreement. The two sides are currently exchanging messages and draft texts. US Secretary of State Marco Rubio said there had been "some good signs" in talks with Iran, although Tehran's uranium stockpile and control over the Strait of Hormuz remained sticking points.

US Jobless Claims

The number of Americans filing claims for unemployment benefits fell last week. Initial claims for state unemployment benefits slipped 3,000 to a seasonally adjusted 209,000 for the week ended May 16. Economists polled by Reuters had forecast 210,000 claims for the latest week.

Japan Inflation

Japan's annual core inflation slowed to a four-year low in April. Japan's core consumer price index (CPI), which strips away the effect of volatile fresh food costs, rose 1.4% in April from a year earlier, much slower than a 1.8% rise in March and falling short of the median market forecast for a 1.7% gain.

US Treasury Yields

US Treasury yields fell following reports that the United States and Iran have neared a final draft of a peace deal. The yield on the benchmark 10-year Treasury note was down 0.8 basis points on the day at 4.575%. The 30-year Treasury bond's yield fell by roughly 2 bps to 5.096%. The two-year Treasury note yield rose 2.3 bps to 4.08%.

Gold and Crude Oil Prices

Gold prices fell and were on track for its second consecutive weekly loss. Spot gold price declined 0.2% to $4,534.29 per ounce. The metal was down about 0.1% for the week so far. US gold futures for June delivery fell 0.1% to $4,535.60. Crude oil prices rose as investors doubted the prospects of a breakthrough in the US-Iran peace talks. Brent crude futures rose 2.3% to $104.96 a barrel, and US West Texas Intermediate futures were up 1.8% at $98.08.

Dollar

The dollar held near a six-week top. The dollar was a touch higher and stood at 99.24 against a basket of currencies, its highest since April 7. The euro dipped 0.03% to $1.1613, while the pound was flat at $1.3431. The Japanese yen was 0.1% lower at 159.09 per dollar.