Overnight Stock Market Movements: Key Developments 

The Indian stock market benchmark indices, BSE Sensex and Nifty 50, are likely to open lower on Wednesday as weakness in the overnight global markets, rising inflation concerns, and elevated bond yields dampened investor risk appetite amid the absence of a US–Iran peace deal.

Asian markets traded lower, while the US stock market closed in the red overnight, with all three major Wall Street indices declining as Treasury yields moved higher.

Moreover, on Tuesday, the Indian stock market ended lower due to continued concerns over the US–Iran conflict, elevated crude oil prices, and weakness in the Indian rupee.

Domestic Market Recap

On Tuesday, Indian indices closed red:

• Sensex slumped by 114.19 points (0.15%) to close at 75,200.85
• Nifty 50 moved down by 31.95 points (0.14%) to settle at 23,618.00

Gift Nifty

Gift Nifty was trading near 23,413, around 199 points lower than the previous Nifty futures close, hinting at a negative start for Indian markets.

Overnight Wall Street Performance

furthermore, the US stock market closed lower on Tuesday as rising Treasury yields fueled inflation concerns and investors remained cautious amid the absence of a peace agreement between the US and Iran.

• The Dow Jones Industrial Average slipped 322.24 points (0.65%) to close at 49,363.88.
• S&P 500 was down by 49.44 points (0.67%), ending at 7,353.61.
• The Nasdaq Composite was lower by 220.02 points (0.84%), finishing at 25,870.71.

Crude Oil Prices

• Brent crude slumped by 0.40% to $110.83/barrel
• US West Texas Intermediate (WTI) crude was trading 0.30% lower at $103.88/barrel

Overnight Major Global Events Driving Sentiment

1. US–Iran War: US President Donald Trump told lawmakers at the White House that the United States would “end the war very quickly” with Iran. Vice President JD Vance also assured that the conflict would not turn into a “forever war.”
2. US Treasury Yields: Yields on long-term US Treasury Bonds climbed to their highest levels in nearly two decades as rising inflation concerns strengthened expectations of further interest rate hikes. The 30-year Treasury bond yield jumped as much as seven basis points to 5.20%, a level last seen before the 2007 global financial crisis, and later traded around 5.18%.
3. Japanese Bond Yields: Japanese Government Bond yields remained close to multi-decade and record highs. The benchmark 10-year JGB yield slipped 0.5 basis points to 2.795% after touching a 29-year peak. The 40-year yield hit a record high of 4.395%, while the 20-year yield climbed to 3.8%, its highest level since August 1996. The two-year yield stood at 1.44%, the highest since May 1995, and the five-year yield held steady at 2.025% after reaching an all-time high.
4. China Interest Rates: China kept its benchmark lending rates unchanged for the 12th straight month in May, in line with market expectations. The one-year loan prime rate (LPR) remained at 3.00%, while the five-year LPR stayed at 3.50%.

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