Stock Market Under the Trump Administration: What is Driving Markets in 2026?

• US stocks declined as semiconductor shares experienced extended losses following a recent rally, dragging the Nasdaq lower. • Major chipmakers including Nvidia, AMD, Intel, and Broadcom led the market downturn, pushing indices toward a weekly loss.

• Major U.S. stock indexes declined on Friday, driven by a second consecutive day of losses in technology and AI-tied shares. • The downturn threatened the S&P 500's streak of 10 consecutive weekly gains as investors reacted to market volatility.

• Asian markets experienced a significant downturn on Friday, highlighted by South Korea’s Kospi index tumbling 5.7% and Japan's Nikkei 225 slipping 1.1%. • The slump was driven by a cooling AI-led rally, with major tech stocks like Samsung Electronics and SK Hynix falling approximately 6% and 8%, respectively.

• Indian stock markets traded cautiously on Thursday during the weekly expiry, with analysts noting a lack of clear direction for the Nifty index. • Major companies including Tata Steel, Tata Motors, ICICI Bank, Vedanta, and Maruti Suzuki are currently in focus due to regulatory developments and business updates.

• India's Union finance ministry predicts that the economic impacts of the West Asia conflict may persist until 2027, with trade levels only returning to pre-conflict norms by late 2026. • Despite the normalization of shipping in the Strait of Hormuz, the ministry reports that three months of conflict have led to elevated energy prices and significant supply-chain disruptions.

• The Australian Securities and Investments Commission (ASIC) admitted during Senate estimates that it holds eight active contracts with KPMG, including two initiated after an investigation into the firm began. • This revelation comes amid an ongoing audit scandal involving KPMG, raising questions about the regulator's decision to maintain professional ties with a company under scrutiny.

• India is shifting its technological focus from a long-standing dominance in software exports and IT services toward the hardware and electronics manufacturing sector. • While the country previously built its global identity on code and back-office operations, there is now a significant surge in foreign investment targeting components and fabrication.

• The Indian stock market traded higher on Friday, with both the Sensex and Nifty extending gains for a second consecutive session. • Market growth followed an announcement by RBI Governor Sanjay Malhotra that the Monetary Policy Committee (MPC) decided to keep the repo rate unchanged.

• The European Union may be entering a period of accelerated integration and policy action, mirroring previous shifts seen in the 1990s and during the pandemic. • This potential shift in EU financial market strategy poses a serious threat to the dominance of the City of London as a global financial hub.

• Indian equity markets are expected to open higher on June 5, with GIFT Nifty futures trading 36 points up at 23,549. • Key stocks in focus include ICICI Bank, Tata Steel, and Groww, alongside rate-sensitive sectors such as banking, auto, realty, and consumer durables.

• South Korean stocks plummeted 4% on Friday, driven by a sharp decline in tech heavyweights following a sell-off of AI-linked names on Wall Street. • The downturn extended across Asia-Pacific markets, with Hong Kong's Hang Seng index dropping 0.46% and the CSI 300 declining 0.29%.