Indian shares recover as Sensex rises 0.4%, Fed speech and closing-auction volatility eyed

India's BSE Sensex rose about 0.4% to 77,244 on Friday after two losing sessions, as investors monitored closing-auction volatility and awaited Federal Reserve Chair Kevin Warsh’s first Jackson Hole keynote since assuming leadership of the central bank for clues on inflation and rates. U.S. equity futures showed minimal morning movement, with Dow futures up about 58 points, or 0.1%, S&P 500 futures down 0.1% and Nasdaq 100 futures off 0.3% after Thursday’s technology surge driven by Nvidia’s long-term outlook and Salesforce’s strongest session since 2020; Marvell Technology plunged more than 8% in premarket trading after second-quarter results that only marginally beat estimates and left investors underwhelmed, with the stock already up 184% year-to-date. The benchmark 10-year Treasury yield hovered around 4.68% near multiyear peaks amid stubborn inflation above the Fed’s 2% goal, while UBS economist Jonathan Pingle said Warsh’s preference for dropping explicit forward guidance means the 10 a.m. ET remarks will likely offer little concrete signal on the federal funds rate. Money markets priced only a 33% chance of a September hike, the Cboe Volatility Index continued to slide just over 14, PayPal shares fell further after Advent and Stripe abandoned a takeover pursuit, and oil slipped as Venezuela considered an OPEC exit, with strong August foreign inflows still supporting Indian shares.

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