The US stock market closed mixed at the end of last week, totaling S&P 500’s moves to fell by 0.3% (but gained 6% YTD) during the week. DJIA edged down 0.1%, and Nasdaq gained 0.6% (surged 13% YTD). The volatile trading session was triggered by the market’s reaction to this week’s series of economic data that still showed relatively high inflation, a solid labor market, and strong purchasing power; implying that the Fed still has a reason to raise interest rates. Goldman Sachs & Bank of America even predicted three more rate hikes this year at 25bps each. Market participants are starting to consider that the Fed Funds Rate may peak at 5.3% in July.

The Indonesian stock market will rely on domestic sentiment at the beginning of this week, especially from GOTO, a large market capitalization stock that made it to  the FTSE index. This positive catalyst is expected to push JCI through Resistance 6955-6965, which is crucial for the journey toward the psychological level of 7000. NHKSI RESEARCH advises Indonesian capital market investors/traders to pay attention to the resistance levels of their respective stock portfolios and Average Up if those levels are broken.

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