On the night of April 29, a 34-year-old history was repeated in America, now why the huge fall in Gift Nifty.:On the night of April 29th, everything seemed normal on Wall Street, but as time progressed, the situation changed. On one hand, the Federal Reserve's decision surprised the market, while on the other, news related to the US-Iran war increased investors' concerns.

News Topical, Digital Desk : The night of April 29th began with the expectation that the US central bank, the Federal Reserve, would not present any major surprises... and that's exactly what happened. The Fed kept interest rates at 3.5% to 3.75%, as the market had previously assumed. But the real story lay within this decision. The Federal Open Market Committee (FOMC) voted 8-4, meaning four members disagreed with the decision. This was the first time since 1992 that such a significant disagreement had emerged, making it clear that there was disagreement within the Fed and uncertainty about future policy remained.

There were differing voices in the dissent. Stephen Miran called for a 0.25 percent reduction, while Neel Kashkari, Lorie Logan, and Beth Hammack objected to the inclusion of "easing bias" in the statement.
Meanwhile, Jerome Powell stated clearly that inflation remains high and that recent increases in global energy prices are contributing significantly to this.

He also indicated that he would remain as a Fed Governor even after his term as Chairman ends, a first since 1948.

This decision by the Fed sparked political rhetoric. Donald Trump attacked Powell, saying he wanted to remain at the Fed because he couldn't find a job elsewhere. Scott Bessent called this a violation of Fed rules. Meanwhile, the process of nominating Kevin Warsh as the new Fed Chair accelerated, and he was approved by the Senate Banking Committee, raising both expectations and uncertainty about further policy changes. But the real market anxiety lay elsewhere. News from the Middle East disturbed investors. The US refused to lift the blockade on the Strait of Hormuz and stated clearly that it would continue until a deal is reached with Iran. According to reports, the US military has prepared for a "short and powerful strike" on Iran. Iran also issued a stern warning that if pressure escalates, it will retaliate. This confrontation has created an atmosphere of fear in the markets.

These reports led to a sharp decline in the US stock market. The Dow Jones Industrial Average fell 280 points to close at 48,861. Meanwhile, the Nasdaq closed with a slight gain of 0.04 percent at 24,673. The S&P fell 0.04 percent to close at 7135.

Subsequently, on the morning of April 30, Asian markets also crashed due to concerns about rising crude oil prices. Japan's Nikkei fell 700 points. Consequently, the Nifty Nifty fell 150 points by 7 a.m.

Meanwhile, another significant development occurred when Vladimir Putin and Trump held a 90-minute conversation.

This conversation was described as friendly and business-like, and issues such as providing time for negotiations with Iran and a temporary ceasefire in Ukraine were discussed. While this raised hopes of easing tensions, the market remained unconvinced.

Crude fueled fears
The biggest impact of war tensions was seen on oil prices. Brent crude crossed $118 per barrel, while West Texas Intermediate hovered around $110. A

supply shortage of around 1 billion barrels is being anticipated, pushing prices higher. This surge in oil prices supported the energy sector, but pressure remained on the rest of the market.

On the other hand, the tech sector did provide some relief. Alphabet Inc., Microsoft, Meta Platforms, and Amazon performed well in terms of revenue and EPS for the March quarter.

However, there were some concerns, such as the impact of the war on Meta's user data, weak guidance from Microsoft, and lower-than-expected cloud demand for Alphabet.