Today’s Outlook :
• US MARKET :
Wall Street recorded its worst day since October last year on Friday, pressured by weakness in technology and semiconductor stocks after U.S. employment data came in far stronger than expected, driving Treasury yields higher and boosting expectations for interest rate hikes. Middle East tensions also escalated after Hezbollah rejected the Israel-Lebanon ceasefire. The S&P 500 fell 2.6% to 7,384.59, the Dow Jones declined 1.4% to 50,866.78, while the Nasdaq plunged 4.2% to 25,709.43, marking its largest daily drop since April 2025.
U.S. nonfarm payrolls increased by 172,000 in May, well above expectations of 85,000, while the unemployment rate remained unchanged at 4.3%. The data reinforced the view that the labor market remains resilient and reduced the likelihood of near-term rate cuts. Market participants have even raised expectations for Fed rate hikes this year, pushing Treasury yields higher and strengthening the U.S. dollar
SPACEX: Investor demand for the SpaceX IPO reached approximately USD150 billion, or around twice its USD75 billion fundraising target. While such an oversubscription level would be considered moderate for a major IPO, demand is viewed as strong given that this could become the largest IPO in history. SpaceX is scheduled to set its final price on June 11 and begin trading on the Nasdaq the following day.
• EUROPEAN MARKET :European stocks closed slightly lower on Friday as investors reassessed uncertainty surrounding the Middle East conflict and the easing momentum of the artificial intelligence (AI)-driven rally. The Stoxx 600 fell 0.3%, Germany’s DAX lost 0.7%, France’s CAC 40 declined 0.3%, while the U.K.’s FTSE 100 edged up 0.1%. Market sentiment was also weighed down by rising Eurozone government bond yields, which posted their first weekly increase since May. Yields were supported by strong U.S. employment data that boosted expectations of a Fed rate hike later this year, amid ongoing uncertainty surrounding U.S.-Iran peace negotiations.
• ASIAN MARKET : Asian stocks mostly declined on Friday as investors took profits in technology shares and rotated into more economically sensitive sectors. Losses were concentrated in semiconductor and AI-related stocks.
South Korea’s KOSPI was the region’s worst performer, falling as much as 6%, driven by sharp declines in Samsung Electronics and SK Hynix, which at one point dropped more than 8%. Sentiment was further pressured after South Korea’s Labor Minister proposed that major technology companies share more AI-related profits with suppliers, subcontractors, and workers.
In Japan, the Nikkei 225 fell 1.6% amid weakness in technology and chip stocks. Markets were also weighed down by growing speculation that the Bank of Japan (BOJ) may raise interest rates this month, supported by stronger-than-expected April wage growth data. Elsewhere, Hong Kong’s Hang Seng fell 0.8% due to weakness in technology shares, while China’s CSI 300 and Shanghai Composite traded in a relatively narrow range.
• COMMODITIES : Oil prices rose by more than USD2 per barrel on Monday after Israel launched renewed strikes on Lebanon despite an existing ceasefire, dampening hopes for an end to the regional conflict and the reopening of the Strait of Hormuz.
WTI rose 2.32% to USD92.64 per barrel, while Brent gained 2.5% to USD95.42 per barrel. The increase erased most of Friday’s losses, which had been driven by optimism over easing tensions between the U.S. and Iran.
The latest strikes are seen as an additional obstacle to a U.S.-Iran peace agreement and the reopening of the Strait of Hormuz, a critical route for global oil and gas trade. Iran has also stated that a ceasefire in Lebanon is one of the conditionsfor reaching a peace deal with Washington.
• INDONESIA : The JCI closed lower on Friday at 5,594.77, declining 4.2%, mainly due to weakness in conglomerate and large-cap stocks. Market sentiment remains highly fragile, following a Bloomberg report carrying the theme of “Sell Indonesia”, which was also driven by concerns over Indonesia’s fiscal and macroeconomic conditions. Until there is greater clarity and certainty regarding the government’s macroeconomic and economic policy direction, the market is expected to remain in negative territory.
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