Today’s Outlook :
• US MARKET : Wall Street closed higher on Wednesday despite choppy trading. Positive sentiment was driven by lower-than-expected U.S. producer inflation (PPI) data and gains across nearly all of the Magnificent Seven stocks, which offset weakness in semiconductor shares and elevated U.S.-Iran tensions. The S&P 500 rose 0.4% to 7,571.01, the NASDAQ Composite gained 0.6% to 26,269.23, and the Dow Jones Industrial Average advanced 0.3% to 52,658.52.
Economic data showed producer inflation moderated in June after consumer inflation also came in below expectations a day earlier. This prompted investors to scale back expectations for further Fed rate hikes. Market participants also focused on a strong start to the corporate earningsseason, supporting the outlook for equities.
In the technology sector, enthusiasm for the AI theme remained intact despite continued profit-taking amid concerns over elevated AI spending and soaring memory chip prices. IBM remained in focus after its shares plunged 25% following the company’s disclosure that customers were shifting IT spending from software to data center infrastructure. Meanwhile, ASML initially surged nearly 8% after reporting strong earnings but eventually closed slightly lower.
Fed Chair Kevin Warsh said AI could push chip prices higher and influence inflation over the next 12 months, although its implications for monetary policy will continue to be assessed.
Data showed U.S. PPI fell 0.3% MoM in June, marking the first monthly decline since August 2025, while core PPI rose 0.2%, both beating expectations. On an annual basis, headline PPI increased 5.5% and core PPI rose 4.7%, also below forecasts. Although inflation risks have resurfaced due to the U.S.-Iran conflict, the June data gives the Fed room to avoid rushing into another rate hike. The probability of a rate increase at the end-of-month meeting has now fallen to around 10%.
• EUROPEAN MARKET : European stocks traded in a holding pattern on Wednesday as strong earnings from ASML offset negative sentiment stemming from the selloff in U.S. technology stocks following IBM’s sharp decline. The STOXX 600 edged up 0.1%. Germany’s DAX fell 0.5%, France’s CAC 40 gained 0.2%, while London’s FTSE 100 slipped 0.1%.
ASML, Europe’s largest technology company, rose 3.3% after reporting second-quarter net sales above expectations. Strong demand for AI chips prompted the company to raise its full-year guidance, supporting sentiment in the technology sector.
• ASIAN MARKET: Most Asian stock markets closed higher on Wednesday after softerthan-expected U.S. inflation data reduced expectations of a near-term Federal Reserve rate hike, although Middle East tensions limited broader gains.
Japan’s Nikkei 225 rose 1% and the broader TOPIX gained 0.5%. South Korea’s KOSPI surged about 7%, driven by a rally in semiconductor stocks. SK Hynix jumped nearly 13% following gains in its U.S.-listed shares, while Samsung Electronics climbed around 8% amid reports the company wasreviewing plans for a U.S. listing.
In China, the Shanghai Composite and CSI 300 each slipped 0.3%, while Hong Kong’s Hang Seng gained 1.5%. Data showed China’s economy grew 4.3% YoY in the second quarter, slowing from 5.0% in the first quarter and missing expectations of 4.5%. June industrial output and retail sales exceeded forecasts, but fixed-asset investment and the property sector remained weak.
• COMMODITIES : Oil prices rose about 1% on Wednesday after the U.S. intensified its attacks on Iran and reports emerged that Washington was considering expanding military operations, including deploying ground forces near the Strait of Hormuz. The renewed escalation lifted the geopolitical risk premium, with oil prices surging nearly 13% this week.
September Brent crude futures rose 1% to USD85.58 per barrel, while August West Texas Intermediate (WTI) crude gained 1.3% to USD80.38 per barrel.
The U.S. military launched two rounds of strikes against Iran on Wednesday, targeting military capabilities used to threaten shipping through the Strait of Hormuz. According to U.S. Central Command (CENTCOM), Iran has attacked seven commercial vessels over the past week, leaving nearly a dozen civilian crew members dead, missing, or injured.
• INDONESIA : The JCI closed slightly higher on Wednesday, continuing to test the key 6,000 support level, and ended the session at 6,041.97.
From a technical perspective, our view remains unchanged. The 6,000 area remains the key confirmation level for restoring bullish momentum. As long as the JCI is unable to hold above this level, the index is expected to continue moving sideways with the potential to retest the 5,300–5,400 support area should selling pressure intensify. Conversely, if the JCI manages to break above and sustain its position above 6,000, the opportunity for further gainstoward 6,100–6,240 will reopen. For today, continue to monitor the 6,000 level closely to see whether the JCI can maintain its position above it.
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