Sensex, Nifty Seen Lower Amid US Tariff Uncertainty

(RTTNews) - Indian shares are likely to open lower on Friday as investors watch the judicial developments surrounding U.S. President Donald Trump's "reciprocal" tariffs and weigh the outlook for Fed policy.

Trump called Federal Reserve Chair Jerome Powell to the White House on Thursday and told the central bank chief he was making a "mistake" by not lowering interest rates. "Powell did not discuss his expectations for monetary policy, except to stress that the path of policy will depend entirely on incoming economic information and what that means for the outlook," the Fed said in a statement after the meeting.

Benchmark indexes Sensex and Nifty ended slightly higher on Thursday, after having struggled for direction till late afternoon trade. The rupee declined 10 paise to close at 85.48 against the greenback. Asian markets were mostly lower this morning, with Japan and Hong Kong leading regional losses amid signs that trade headwinds will not subside anytime soon.

Even if tariffs are defanged, analysts say that Trump will have other options to pursue the trade war.

The dollar softened and was poised for its fifth straight monthly decline due to trade and fiscal worries.

The Japanese yen attracted buyers for the second straight day as data showed inflation in Tokyo rose the most in two years.

Gold dipped toward $3,300 per ounce ahead of key U.S. inflation data that could influence the Fed's rate trajectory.

Oil prices traded lower and were set for a weekly drop as markets braced for a potential OPEC+ output hike.

U.S. stocks fluctuated before closing moderately higher overnight as strong Nvidia earnings and easing bond yields after a strong note auction offset legal uncertainty surrounding President Trump's reciprocal tariffs.

An appeals court reinstated Trump's "Liberation Day" tariffs after a trade court blocked them, ruling he overreached his authority.

Earlier, the White House threatened to take the case to the Supreme Court on Friday if its appeal was not granted.

In economic releases, weekly jobless claims rose, corporate profits fell sharply in the first quarter, pending home sales dropped by most since 2022 and revised GDP figures confirmed first contraction since 2022 and showed slowdown in consumer spending growth, reinforcing bets the Federal Reserve will lower interest rates twice by early 2026.

The Dow edged up by 0.3 percent while the tech-heavy Nasdaq Composite and the S&P 500 both added around 0.4 percent.

European stocks reversed course to end lower on Thursday due to ongoing uncertainty over U.S. tariffs.

The pan European STOXX 600 dropped 0.2 percent. The German DAX dipped 0.4 percent while France's CAC 40 and the U.K.'s FTSE 100 both slid by 0.1 percent.