Today’s Outlook :
• US MARKET : Wall Street closed mixed on Tuesday after a volatile and generally weaker trading session, following President Donald Trump’s statement that the U.S. would respond to Iran’s attack that downed an American helicopter. Market sentiment was also pressured by the weakening rally in chip stocks, which dragged down the technology sector. Investors also monitored OpenAI’s confidential IPO filing and remained cautious ahead of the release of U.S. inflation data this week. The S&P 500 Index fell 0.3% to 7,385.48, the NASDAQ declined 1% to 25,678.82, while the Dow Jones rose 0.1% to 50,870.94.
The rally in chip stocks that had previously pushed Wall Street to record highs this year failed to sustain itself. The Philadelphia Semiconductor Index had dropped more than 10% last Friday, marking its worst daily decline in 2026, after strong U.S. labor data raised market expectations of a possible Federal Reserve interest rate hike. Although chip stocks recovered on Monday, the rebound was short-lived.
Aside from the decline in chip stocks, the artificial intelligence sector was also in focus after OpenAI confidentially filed for an IPO in the U.S., following its competitor Anthropic, which took a similar step more than a week earlier.
From an economic perspective, the market’s attention this week is focused on the May Consumer Price Index (CPI) data to be released on Wednesday and the Producer Price Index (PPI) data on Thursday. With the labor market remaining strong and inflation potentially rising due to higher oil prices caused by the Iran conflict, investors expect the Fed to maintain high interest rates or even raise them this year.
• EUROPEAN MARKET : European stock markets traded mixed on Tuesday as tensions in the Middle East eased, while investors prepared for the European Central Bank (ECB) interest rate decision scheduled to be announced this week. The Stoxx 600 Index fell 0.5%, Germany’s DAX declined 0.8%, and the UK’s FTSE 100 dropped 1.4%. Meanwhile, France’s CAC 40 gained 0.1%.
• ASIAN MARKET : Asian markets mostly moved higher on Tuesday, supported by a rebound in semiconductor and AI-related stocks, as well as easing tensions in the Middle East. South Korea’s KOSPI led gains by rising 3% as chip stocks recovered, with Samsung Electronics increasing 3.4% and SK Hynix surging 7.7% following its partnership with Nvidia. Sentiment was also supported by South Korea’s first-quarter economic growth of 1.8%, driven by strong semiconductor exports. Japan’s Nikkei 225 gained 0.9% and TOPIX rose 0.5% alongside the recovery in technology stocks.
In China, the CSI 300 and Shanghai Composite each increased 0.4% after May trade data showed a stronger-than-expected surplus, supported by a surge in exports and import demand for semiconductor and AI components.
• COMMODITIES : Oil prices rose around 1% on Wednesday after the U.S. military launched new strikes against Iran and data showed a decline in U.S. crude oil inventories for the eighth consecutive week Brent crude rose 0.9% to USD 92.29 per barrel, while WTI crude increased 0.8% to USD 88.97 per barrel, rebounding from their lowest levels in around seven weeks during the previous session. The price increase came amid renewed U.S.-Iran tensions following the attack on a U.S. Apache helicopter, which threatened the fragile ceasefire between the two countries. However, shipping traffic and oil exports through the Strait of Hormuz have started to recover amid ongoing diplomatic efforts. From the supply side, U.S. crude oil inventories declined for eight consecutive weeks, providing additional support to oil prices.
• INDONESIA : The JCI closed significantly higher at 5,746.65 on Tuesday, gaining 7.57%, supported by a rally in conglomerate and conventional large-cap stocks. The Indonesian government appears to have started responding to feedback from the capital market. A meeting involving the Vice Speaker of the House of Representatives (DPR RI), Danantara’s COO, and several CEOs of state-owned banks (Himbara) resulted in a planned buyback of fundamentally strong state-owned enterprise (SOE) stocks, particularly banking shares, which helped restore market confidence. The market is now awaiting the realization of the buyback plan. Bank Indonesia also made a surprising move by raising its benchmark interest rate by 25 basis points (bps) in an effort to stabilize the Rupiah exchange rate.
Furthermore, the newly announced increase in Pertamax fuel prices received a positive response from the market, as it signaled a more solid fiscal management approach to help reduce the state budget deficit (APBN). Despite yesterday’s rally being the second-largest in history after the post-COVID rally, investors still need to remain rational amid the ongoing pressure…
Download full report HERE.
