Today’s Outlook :
• US MARKET : Wall Street ended mostly lower on Thursday, although the major indices closed well above their session lows. Market sentiment was pressured by a sharp post-earnings drop in Microsoft shares, which dragged down the software services sector. The S&P 500 slipped 0.2% to 6,963.76 after falling more than 1.5% earlier in the session. The NASDAQ Composite declined 0.7% to 23,685.12, having slid around 2.5% earlier. Meanwhile, the Dow Jones Industrial Average edged up 0.1% to 49,071.56.
Three members of the Magnificent Seven reported earnings after Wednesday’s close, with mixed market reactions. Meta shares surged after the Facebook parent forecast first-quarter revenue above market expectations, reflecting resilient advertising demand and improving returns from artificial intelligence investments. Meta also said capital expenditures could jump to as much as USD 135 billion this year, far above Wall Street estimates and nearly double the 2025 total, reinforcing AI as a key earnings theme. In contrast, Microsoft shares plunged sharply, despite increased AI spending, amid concerns over slightly slower growth in its Azure cloud business compared with the previous quarter.
• EUROPEAN MARKET : European stocks traded mixed on Thursday as investors digested a wave of quarterly earnings from major European companies following the Fed’s decision to keep interest rates unchanged. Germany’s DAX slumped 2.1%, while France’s CAC 40 gained and the U.K.’s FTSE 100 rose slightly by 0.1%.
• ASIAN MARKET : Most Asian stock markets took a breather on Thursday as technology shares corrected after recent rallies, with investors assessing mixed results from U.S. tech giants and the Fed’s rate decision. Asian tech stocks, which had surged on expectations of strong AI-related demand, retreated from recent highs. South Korea’s KOSPI fell 0.3% after briefly hitting a new record, as Samsung Electronics and SK Hynix initially rose on strong earnings and outlooks before retreating on profit-taking. In China, the CSI 300 and Shanghai Composite indices were largely flat.
• COMMODITIES : Oil prices climbed about 3% to a five-month high on Thursday amid concerns over potential global supply disruptions if the U.S. attacks Iran, one of OPEC’s largest producers. Brent crude rose USD 2.31 (+3.4%) to USD 70.71 per barrel, while WTI gained USD 2.21 (+3.5%) to USD 65.42 per barrel. The rally pushed both benchmarks into technically overbought territory, with Brent at its highest since July 31 and WTI since September 26.
U.S. President Donald Trump is reportedly weighing options against Iran, including limited strikes on security forces and leadership to spark protests, according to multiple sources. However, Israeli and Arab officials said air power alone would not be enough to topple Tehran’s regime. In Iran, security forces have carried out mass arrests to deter further protests. Two U.S. sources said Trump wants to create conditions for “regime change” following a harsh crackdown on nationwide protests earlier this month that killed thousands.
• INDONESIA : The Jakarta Composite Index (IHSG) closed down 1.06% at 8,232.2, forming a strong hammer candle, despite a trading halt during the first session. Several big-cap stocks, including conglomerates and banks, rebounded strongly following regulatory measures to address market concerns after MSCI announced no Indonesian inclusions for the January 2026 rebalancing due to ongoing issues over the definition of real free float (with KSEI-classified corporate holdings deemed non-free float). Despite the strong hammer pattern and the highest trading volume on record, any further pullback could be used as an opportunity to re-accumulate highly liquid stocks, particularly gold-based commodity names amid record-high gold prices, as well as other commodities, especially metals. For narrative-driven trading in smaller-liquidity stocks, accumulation opportunities may arise in general insurance companies and KBMI 1 banks, supported by capital-increase catalysts. Investors are advised to remain cautious by applying tight stop-loss and trailing-stop strategies amid heightened volatility.
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