Today’s Outlook :
• US MARKET : Wall Street closed slightly lower on Friday, ending the week in negative territory as technology stocks remained under pressure. The S&P 500 fell 0.3% to 7,338.39, the Nasdaq slipped 0.2% to 25,297.62, and the Dow Jones declined 0.1% to 51,865.52. For the week, the S&P 500 lost 2.2%, the Nasdaq tumbled 4.6%, while the Dow still managed to gain 0.6%.
With Middle East tensions easing and oil prices continuing to decline, market focus shifted back to the AI sector. The S&P 500 Technology sector fell more than 5% during the week, weighed by concerns over AI stock valuations and developments in the memory chip market.
Pressure began after reports that SK Hynix was shifting its focus back to the DRAM market, triggering a selloff in chip stocks and dragging the KOSPI sharply lower. Although shares briefly recovered following plans for a USD 29.4 billion Nasdaq listing, both SK Hynix and Samsung Electronics fell again on Friday. In the U.S., Micron Technology’s post-earnings rally was offset by Apple’s sharp decline following product price hikes, as well as reports that OpenAI is considering delaying its IPO until 2027.
On the economic front, investors focused on May Core PCE inflation data. Core PCE rose 0.3% MoM and 3.4% YoY, in line with expectations and marking the highest annual reading since October 2023. Headline PCE also matched forecasts. Despite elevated inflation, markets trimmed expectations for further Fed rate hikes, as falling oil prices are expected to ease inflationary pressures going forward.
• EUROPEAN MARKET : European markets closed lower on Friday, reversing the previous session’s gains. Negative sentiment was driven by corporate price hikes, persistently elevated U.S. inflation, IPO delays, and rising geopolitical tensions in the Middle East, prompting investors to reduce exposure to risk assets.
The STOXX 600 fell 0.7%, pulling back from its previous record close. Germany’s DAX dropped 1.3%, France’s CAC 40 declined 0.6%, and the UK’s FTSE 100 fell 0.2%.
• ASIAN MARKET : Asian markets tumbled on Friday, led by South Korea, as the technology selloff intensified following Apple’s product price hikes and reports of a potential delay to OpenAI’s IPO, further weighing on AI-related sentiment.
South Korea’s KOSPI plunged more than 8% and triggered a circuit breaker for the second time this week. Samsung Electronics fell 7.4%, while SK Hynix dropped 8.7%, amid concerns over rising capital expenditure in the semiconductor industry. The KOSPI was on track for a weekly loss of nearly 10%.
In Japan, the Nikkei 225 declined more than 4% as technology stocks weakened. Meanwhile, Tokyo inflation data pointed to persistent price pressures, reinforcing expectations for additional interest rate hikes by the Bank of Japan.
Losses also spread across the region. Hong Kong’s Hang Seng fell 1.6%, China’s CSI 300 declined 2.4%, the Shanghai Composite lost 1.6%, while the MSCI Asia ex-Japan Index dropped nearly 2.9%.
• COMMODITIES : Oil prices declined during Asian trading on Friday and remained on track for a third consecutive weekly loss. Optimism surrounding the U.S.-Iran peace agreement and the normalization of shipping traffic through the Strait of Hormuz outweighed concerns after a cargo ship was attacked near Oman.
Brent crude fell 0.5% to USD 74.89 per barrel, while WTI slipped 0.5% to USD 71.58 per barrel. For the week, both Brent and WTI were set to decline by around 7%, extending losses following last week’s interim U.S.-Iran peace agreement.
• INDONESIA : The JCI closed 1.72% lower on Friday at 5,896.13. Market participants remained largely in a wait-and-see mode, with sentiment staying fragile amid Indonesia’s current conditions.
From a technical perspective, if the JCI fails to move back above the 6,000 level, the index could retest the 5,300–5,400 support area. Conversely, a break above 6,000 would open the way for further upside toward 6,100 and 6,240.
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