Today’s Outlook :
• US MARKET : Wall Street snapped a nine-session winning streak on Wednesday as weakness in technology stocks and escalating tensions in the Middle East dampened hopes for a near-term U.S.-Iran peace agreement. The S&P 500 fell 0.7% to 7,555.82, the Nasdaq declined 0.9% to 26,853.98, and the Dow Jones Industrial Average dropped 1.2% to 50,688.43.
U.S.-Iran tensions intensified after the U.S. military disabled a tanker heading toward an Iranian port and claimed it had intercepted Iranian missile and drone attacks targeting Kuwait and Bahrain. In response, Iranian state media reported that its armed forces targeted the U.S. Fifth Fleet headquarters in Bahrain and a nearby U.S. military base. These developments reduced optimism over a potential peace deal, although U.S. President Donald Trump maintained that negotiations were still ongoing.
In the technology sector, the S&P 500 technology index declined, ending a four-day rally. Shares of Palo Alto Networks plunged 5.6% despite strong quarterly results. Meanwhile, semiconductor stocks continued to advance on AI optimism, supported in part by Alphabet’s plan to raise nearly USD 85 billion in capital.
On the economic front, ADP data showed the U.S. private sector added 122,000 jobs in May, the highest increase since January 2025. The data indicated that the labor market remains resilient, giving the Federal Reserve more room to focus on inflation amid rising oil prices linked to the Iran conflict.
• EUROPEAN MARKET : European stocks closed lower on Wednesday, while oil prices and government bond yields rose after fresh missile strikes weakened expectations of a near-term peace agreement involving Iran. The Stoxx 600 fell 0.7%, Germany’s DAX lost 1.2%, France’s CAC 40 declined 0.7%, and the U.K.’s FTSE 100 slipped 0.4%.
Rising bond yields also pressured equities. Markets are now pricing in more than a 50% probability that the European Central Bank will raise interest rates three times before the end of 2026 to address inflationary pressures stemming from higher energy prices. Germany’s 2-year government bond yield rose 3 basis points to 2.654%, while the 10-year yield increased 2.5 basis points to 3.0%. Yields also moved higher in France, Italy, and Spain.
• ASIAN MARKET :Asian stocks advanced on Wednesday, supported by gains in technology shares and continued optimism surrounding AI, allowing markets to largely look past the latest escalation in the U.S.-Iran conflict. Japan was the region’s top performer. The Nikkei 225 surged nearly 3% to a record high of 68,645.5, while the TOPIX reached an all-time high of 3,996.22. Sentiment was boosted by rallies in technology and industrial stocks, as well as expectations of further fiscal stimulus after the Japanese government approved a supplementary budget of ¥3.11 trillion to address rising living costs caused by the Iran war. In contrast, Hong Kong’s Hang Seng Index fell nearly 2% as investors took profits in technology stocks following strong gains in the previous session.
• COMMODITIES :Oil prices eased on Thursday after a ceasefire agreement between Israel and Lebanon raised hopes for a broader deal to end the U.S.-Israel conflict with Iran. In addition, the U.S. House of Representatives approved a resolution aimed at limiting President Donald Trump’s war powers. Brent crude fell 0.69% to USD 97.14 per barrel, while WTI crude declined 0.65% to USD 95.40 per barrel. The pullback came after both benchmarks had gained around 2% on Wednesday amid heightened Middle East tensions. On the supply side, data from the Energy Information Administration showed U.S. crude inventories fell by 8 million barrels to 433.7 million barrels in the week ended May 29, exceeding market expectations for a 4 million-barrel draw.
• INDONESIA : The JCI closed sharply lower on Wednesday, falling 4.11% to 5,941.11, pressured by declines in major conglomerate and large-cap stocks. Market sentiment was weighed down by concerns over reports of a potential downgrade to Indonesia’s bond rating, including rumors involving S&P Global Ratings, discussions surrounding the implementation of a gross-split scheme for nonoil-and-gas commodity companies, and continued weakness in the rupiah, which approached all-time-low levels. Technically, the key support level for the JCI is seen at 5,800. A break below that level could push the market into a significantly more bearish territory.
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