Today’s Outlook :
• US MARKET : Wall Street attempted a rebound on Wednesday following a sharp selloff in memory and semiconductor stocks the previous day, but failed to sustain gains as the technology sector remained under pressure ahead of earnings from Micron Technology, the world’s third-largest memory chipmaker.
Deeper losses were limited by weaker oil prices, which helped ease inflation concerns. This prompted investors to scale back expectations for further Federal Reserve rate hikes and increase purchases of U.S. government bonds, pushing Treasury yields lower.
The S&P 500 slipped 0.1% to 7,359.11, while the Nasdaq Composite fell 0.4% to 25,476.64. In contrast, the Dow Jones Industrial Average gained 0.4% to 51,850.87.
Market sentiment remained pressured by the global technology stock sell-off triggered by South Korea’s market decline a day earlier. Following the easing of geopolitical risks after the temporary U.S.–Iran peace agreement, investors have shifted their focus back to valuations and growth prospects in the AI and semiconductor sectors.
The S&P 500 Technology sector fell 0.6%, while the Philadelphia Semiconductor Index declined 0.2%. Micron shares slipped 0.4% ahead of its earnings release.
• EUROPEAN MARKET : European markets traded mixed on Wednesday amid weak sentiment driven by the global technology sell-off and concerns that high interest rates will remain in place for longer.
The STOXX 600 rose slightly by 0.08% to 635.16. France’s CAC 40 gained 0.5% and the UK’s FTSE 100 advanced 0.3%, while Germany’s DAX and Italy’s FTSE MIB each fell 0.7%
Investors have begun questioning lofty valuations and massive corporate spending on AI amid concerns that the Federal Reserve’s restrictive monetary policy could slow economic growth.
In Europe, the ECB is still expected to maintain high interest rates to control inflation. Meanwhile, UK markets are also facing political uncertainty following the resignation of Prime Minister Keir Starmer, alongside a slowing economy and the Bank of England’s decision to keep rates unchanged.
• ASIAN MARKET : Asian markets traded mixed on Wednesday. South Korea led regional gains as easing tensions in the Middle East improved risk appetite, although investors remained cautious about elevated valuations in technology and AI stocks.
South Korea’s KOSPI surged 3.3%, recovering part of the nearly 10% decline recorded in the previous session. Gains were led by technology and semiconductor stocks that had previously suffered heavy selling pressure.
In contrast, Japan’s Nikkei 225 fell 0.8% and TOPIX lost 0.7% after several Bank of Japan policymakers signaled support for further interest rate hikes, raising concerns over financing costs and corporate earnings.
Chinese markets closed modestly higher, with the CSI 300 rising 0.5%, the Shanghai Composite gaining 0.1%, and Hong Kong’s Hang Seng advancing 0.4%, supported by improving risk sentiment and expectations of additional policy stimulus.
Market sentiment was also supported by the normalization of tanker traffic through the Strait of Hormuz following the easing of the Iran–Israel conflict, reducing concerns over disruptions to global oil supplies.
• COMMODITIES : Oil prices extended their decline on Wednesday for a third consecutive session as concerns over disruptions to Middle East energy supplies eased amid improving U.S.–Iran relations and the gradual normalization of shipping activity through the Strait of Hormuz.
Brent crude fell 4% to USD 73.71 per barrel, while WTI dropped 4.4% to USD 69.98 per barrel, falling below the USD 70 level for the first time since early March.
Market sentiment was supported by increasing shipping activity through the Strait of Hormuz. Several supertankers that had previously been stranded were reported to have successfully exited the Persian Gulf carrying crude cargoes, while Qatar-linked LNG vessels have also resumed operations. This is viewed as an early sign of normalization in global energy flows and reduced supply disruption risks.
• INDONESIA : The JCI closed down 3.56% at 5,883.88 on Wednesday following MSCI’s announcement that if the progress of Indonesia’s market governance reforms is deemed insufficient, MSCI may initiate consultations regarding a potential reclassification of Indonesia from Emerging Market to Frontier Market status.
From a technical perspective, if the JCI fails to recover above the 6,000 level, there remains potential for further correction toward the 5,300–5,400 support range.
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