Before Market Opens: 9 things to know at 9 am on May 17, 2023

U.S. stocks closed lower on Tuesday and benchmark Treasury yields extended their rise as mixed economic data, weak corporate results and ongoing debt ceiling negotiations in Washington dampened investor risk appetite. While all three major U.S. stock indexes ended down, the tech-heavy Nasdaq's losses were held in check by momentum megacaps including Amazon.com, Alphabet Inc and Microsoft Corp. The Dow Jones Industrial Average fell 336.46 points, or 1.01%, to 33,012.14, the S&P 500 lost 26.38 points, or 0.64%, to 4,109.9 and the Nasdaq Composite dropped 22.16 points, or 0.18%, to 12,343.05.

Asia-Pacific markets are trading mixed as the region looks to economic data from several countries, including Japan and Australia. Japan’s Nikkei 225 was up 0.45 percent in early trade, while the Topix was up 0.11 percent, as the index maintained in levels at the highest since August 1990. South Korea’s Kospi traded close to the flatline on Wednesday, while the Kosdaq saw a 0.49 percent gain. In Hong Kong, futures for the Hang Seng index were at 19,884, lower than the HSI’s last close of 19,978.25.

At 8:20 am, the SGX Nifty was trading 45 points or 0.25 percent lower at 18,284, indicating a negative opening for the Indian markets. 

Benchmark equity indices ended lower on Tuesday after two days of rally, dragged down by index majors HDFC twins and Reliance Industries. The 30-share BSE Sensex declined 413.24 points or 0.66 percent to settle at 61,932.47 even after beginning the trade on a firm note. The NSE Nifty went lower by 112.35 points or 0.61 percent to end at 18,286.50.

Oil futures edged lower on Tuesday as weaker-than-expected economic data in China offset a forecast of higher global demand from the International Energy Agency (IEA). Brent crude futures last dropped 26 cents to $74.97 a barrel, while US West Texas Intermediate crude edged down 17 cents to $70.94. Both benchmarks rose more than 1 percent on Monday, reversing a three-session losing streak.

Treasury Secretary Janet Yellen on Tuesday warned that a US default on government debt would leave millions of Americans without income payments, potentially triggering a recession that destroys many American jobs and businesses. Yellen said the unprecedented economic and financial crisis would be exacerbated by possible disruptions to the federal government’s operations, including air traffic control, law enforcement, border security and national defense, and telecommunications systems.

Foreign institutional investors (FII) bought shares worth ₹1,406.86 crore, whereas domestic institutional investors (DII) sold shares worth ₹886.17 crore on May 16, provisional data from the National Stock Exchange showed.

The rupee gained 6 paise to close at 82.25 against the US dollar on Tuesday, as the American currency retreated from its elevated levels.

Gold fell below $2,000 on Tuesday after US economic data and hawkish remarks from Federal Reserve officials drove bets that interest rate cuts may be delayed, while traders kept an eye on the US debt-ceiling talks.Spot gold was down 1.47 percent at $1,990.89 per ounce, while US gold futures fell 1.38 percent to $1,994.70.