Wall Street closed lower, with the Nasdaq down by more than 2%. Technology shares are sensitive to interest rates after a speech by the Fed Chair saying a 50 bps rate hike would be discussed at the May meeting. Some investors are skeptical that the Fed can control inflation without causing damage to the US economy. Meanwhile, the yield on the 10-year US Treasury held above the 2.90% level or returned to the psychological level of 3%.

The financial sector supported the strengthening of the stock market, with the JCI climbed 0.7% to 7,276 yesterday, as investors began to pay close attention to the release of the 1Q22 performance of the banking sector. Foreign investors recorded net buy of more than IDR 1 trillion, with top buys including the big four banking stocks. NHKSI Research projects JCI to move upward at the end of this week, in the range of 7,250-7,355. Meanwhile, investors are keeping a close eye on the Bloomberg survey for the FOMC meeting next May, which projects a 50 bps rate hike to 0.75%-1.00% (Vs. Prev. 0.25%-0.50%).

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