Today’s Outlook :
• US MARKET : U.S. stocks ended mixed on Tuesday, supported by continued declines in oil prices and several positive corporate earnings reports, although semiconductor stocks weakened to their lowest levels in more than two months.
The S&P 500 rose 0.3% to 7,431.43, the Dow Jones gained 1.0% to 52,747.53, while the Nasdaq Composite fell 0.2% to 24,876.91 after declining as much as 1.4%.
AI sector sentiment weakened after Nvidia shares fell 5% following reports that the company was in discussions to contribute around USD250 billion to an OpenAI data center project. The news raised concerns over massive AI spending and investment models in the sector.
The pressure extended to Asian markets, with South Korea’s KOSPI plunging more than 10%. Shares of Samsung Electronics and SK Hynix fell 13.4% and 14.7%, respectively, while Japan’s Nikkei 225 declined 4% with Kioxia dropping 18.3%. Competition from China also continued to weigh on the global chip sector.
In the U.S., memory and semiconductor stocks were the main decliners. The Philadelphia Semiconductor Index fell 4.5%, while the S&P 500 technology sector declined 1.2%. On the other hand, Apple shares rose 0.9% and briefly recorded a market capitalization above USD5 trillion for the first time.
Market participants are now awaiting the Fed’s interest rate decision, which is expected to keep rates unchanged. Investors will also closely monitor Fed Chair Kevin Warsh’s comments regarding the inflation outlook and future monetary policy direction amid uncertainty from Middle East developments and oil price volatility.
• EUROPEAN MARKET : European stocks closed higher on Tuesday, supported by solid consumer sector earnings reports despite rising geopolitical tensions. The STOXX 600 rose 0.4%, Germany’s DAX gained 0.5%, France’s CAC 40 increased 0.6%, and the U.K.’s FTSE 100 advanced 0.8%.
Market sentiment was briefly pressured after President Donald Trump warned that the U.S. could strike Iranian infrastructure, including the underground Pickaxe Mountain facility, if Tehran fails to reach a diplomatic agreement with Washington.
• ASIAN MARKET: Asian stocks plunged on Tuesday, led by South Korea and Japan, as rising concerns over massive AI investments triggered selling pressure in global semiconductor stocks.
South Korea’s KOSPI dropped 10%, while Japan’s Nikkei 225 fell as much as 4.4% and the TOPIX declined 2.7%. Shares of SK Hynix and Samsung Electronics fell as much as 13% and 12%, respectively, while Kioxia, Tokyo Electron, Disco, Nikon, and Murata in Japan declined more than 9%.
Sentiment deteriorated after reports stated that Nvidia’s AI funding commitments had exceeded USD750 billion, raising concerns over the scale of AI spending. Meanwhile, China’s progress in producing domestic DUV lithography machines also heightened concerns over increasing competition in the semiconductor industry.
In China, the Hang Seng closed flat, while the Shanghai Composite fell 1.2% and the CSI 300 declined 2.6%. Chinese technology stocks were relatively more resilient, supported by optimism over the growth of the domestic semiconductor industry.
• COMMODITIES : Oil prices rose more than 3% on Wednesday, driven by declining U.S. crude inventories and a recovery following losses caused by easing U.S.-Iran tensions. Brent rose 3.2% to USD86.80 per barrel, while WTI gained 3.4% to USD81.95 per barrel. OPEC+ is also expected to halt production increases for three months starting in October after completing the planned return of previously cut production.
• INDONESIA : The JCI closed down 0.89% at 6,130.59 on Tuesday. IHSG remains in a ranging phase and continues to consolidate, with the expected trading range between 6,000–6,200–6,400. Market participants are still adopting a wait-and-see approach while awaiting clarity on the successor to Perry Warjiyo as Bank Indonesia Governor.
Amid limited new positive catalysts, IHSG’s movement is expected to remain influenced by domestic developments, particularly regarding Bank Indonesia’s leadership, as well as volatile global market sentiment.
For today’s session, the 6,200 level remains a key short-term resistance area to monitor. As long as IHSG fails to break and hold above this level, the index may continue its consolidation phase, with 6,000 serving as the main support level.
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