Global stock markets rebounded as easing U.S. Treasury yields improved global risk sentiment, according to thehindu.com. Benchmark indices in India saw strong upward movement, with the 30-share BSE Sensex jumping 504.32 points to 77,416.16 in early trade after a four-day decline. The 50-share NSE Nifty also rebounded, climbing 118.85 points to 24,198.55, following seven days of losses.
Global Markets Rebound as Microsoft Earnings and Easing Yields Lift Stocks
Fresh foreign fund inflows supported the optimism during initial trading. Foreign Institutional Investors bought equities worth ₹407.99 crore on Wednesday. All 30 Sensex firms traded in positive territory during early deals, with Eternal, Infosys, Tech Mahindra, Bajaj Finance, Tata Consultancy Services, and HCL Tech leading the winners. In Asian markets, South Korea’s Kospi rebounded 5.74%, while Japan’s Nikkei 225, Shanghai’s SSE Composite index, and Hong Kong’s Hang Seng index also traded higher.
Wall Street Recovers Following Strong Chip and Microsoft Rallies
On Wall Street, benchmark indices recovered most to all losses from a post-Fed policy sell-off as chip stocks snapped a multi-day losing streak, according to cnbctv18.com. The Dow Jones gained over 600 points, recovering more than half of its previous 1,100-point fall. The S&P 500 rose 1.7%, and the Nasdaq Composite rose 2.7%, with both tech-led indices recovering all of Wednesday’s losses. The Nasdaq 100 index surged nearly 3.5%.
Nearly every chip stock posted double-digit gains. Nvidia rose 2.5%, while peers AMD, Intel, and Micron gained between 11% and 18%. The SK Hynix ADR climbed 18% and Sandisk shares rose 26% overnight.
The chip rally was heavily buoyed by Microsoft, whose shares surged 15% to mark its best single-day gain since October 2008. The company added nearly $450 billion in market capitalization, setting a record for the largest single-day market cap addition in history and eclipsing Nvidia’s previous $440 billion addition.
Conversely, software stocks experienced a sell-off due to the rotation into chip names. Shares of Salesforce, Adobe, Accenture, and Cognizant fell between 4% and 6%, and the US-listed Infosys ADR dropped over 5%.
Macroeconomic Data and Yield Pressures
The market rally brushed aside macroeconomic data reported during the session. U.S. second-quarter GDP stood at 1.5%, falling short of estimates for 1.8% and dropping from 2.1% in the first quarter. Meanwhile, the Personal Consumption Expenditure inflation index rose 3.7% year-on-year in June in-line with expectations, and Core PCE rose 3.3% from last year, both remaining above the Federal Reserve’s 2% target.
Markets also bypassed elevated bond market conditions. The 10-year U.S. Treasury yield hovered near highs seen since 2025, and the 30-year yield remained at its highest level since 2007. However, Rajesh Palviya, Head of Research at Axis Direct, noted that U.S. indices halted a three-day losing streak after the U.S. Treasury announced plans to more than double long-dated debt buybacks, pulling the 10-year Treasury yield down to 4.65%.
Brent crude traded 0.20% higher at $91.87 per barrel. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, stated that the decline in U.S. bond yields indicates a positive potential construct for equity markets globally. Meanwhile, Ponmudi R, CEO of Enrich Money, cautioned that persistent geopolitical uncertainty in the Middle East is likely to keep investors watchful despite the constructive backdrop in overseas equities.
