Wall Street delivered a split performance Thursday as a surge in defence stocks, fueled by President Donald Trump's proposal for a $1.5 trillion military budget, was offset by a retreat in major technology names.

Providing his morning commentary, Devarsh Vakil, Head of Prime Research at HDFC Securities, noted that while global cues are providing a mild lift, the focus remains on the "delicate balance" between shifting U.S. fiscal policies and institutional challenges.

The Dow Jones Industrial Average rebounded from its previous session's decline to finish higher, but the tech-heavy Nasdaq snapped a three-day winning streak. High-flying artificial intelligence stocks led the downturn; Nvidia fell 2.2%, Broadcom dropped 3.2%, and Microsoft shed 1.1%. The S&P 500 technology index slid 1.5%, leaving it down nearly 1% for the young year as investors questioned the sustainability of premium valuations.

In contrast, defence giants Northrop Grumman and Lockheed Martin saw gains of up to 8% during the session before moderating. The rally follows the White House's call for a massive defence spending boost to modernise the U.S. military for 2026's shifting global security landscape.

In the commodities sector, a potential "mega-merger" emerged as Glencore and Rio Tinto confirmed preliminary discussions for a buyout. If successful, the all-share deal would create a mining titan with a combined market value of approximately $207 billion, specialising in copper and iron ore.

The automotive sector saw a major shift as General Motors announced a $6 billion impairment charge to scale back its electric vehicle (EV) investments. The company cited cooling consumer demand and a pivot in federal policy under the Trump administration, which has moved to end Biden-era EV tax incentives.

Traders remained cautious overall ahead of Friday's highly anticipated monthly jobs report from the Labour Department. Additionally, the U.S. Supreme Court is expected to rule as early as today on the president’s use of the International Emergency Economic Powers Act (IEEPA) to implement universal tariffs. A ruling upholding the 10% baseline duties would support "onshoring" initiatives but risks stoking inflation, while a strike-down could lower corporate input costs at the expense of government revenue.

Indian markets suffered their fourth consecutive losing session on Thursday, with the Nifty 50 plunging 263 points to close at 25,876.

The sell-off was broad-based, with the Metal, Oil & Gas, and PSU Bank sectors leading the decline. Technically, the Nifty breached its 50-day exponential moving average and fell below its previous swing low. Analysts identified the 25,700 level as the next crucial support, while the 26,000–26,050 range is expected to act as immediate resistance.

In contrast to the heavy sell-off on Thursday, the Indian markets opened on a guarded but slightly positive note this Friday, January 9, 2026. While global trade anxieties and persistent foreign institutional investor (FII) selling continue to act as a drag, the domestic benchmarks managed to stage a modest recovery in early trade.