Today’s Outlook :
• US MARKET : Wall Street closed mostly higher on Thursday, supported by gains in the healthcare sector and improving sentiment surrounding the Middle East, which offset weakness in technology stocks. The S&P 500 rose 0.4% to 7,584.82, while the Dow Jones surged 1.7% to a record high of 51,562.30. The Nasdaq edged slightly lower to 26,830.96.
The AI-driven rally paused after Broadcom shares plunged 12.6% following its earnings report. Although revenue from its AI semiconductor business grew strongly, the company’s guidance fell short of the market’s elevated expectations. Broadcom’s decline also weighed on other semiconductor stocks, including Micron, Arm, AMD, and Qualcomm
On the macro front, the U.S. labor market continued to show solid recovery after slowing toward the end of last year. This gives the Fed more room to focus on controlling inflation amid rising oil prices. Investors are now awaiting Friday’s May nonfarm payrolls report as a key indicator of labor marketstrength.
• EUROPEAN MARKET : European stocks closed higher on Thursday as investors assessed the implications of the latest ceasefire agreement between Israel and Lebanon on efforts to end the more than three-month-long Iran war. The Stoxx 600 gained 0.5%, Germany’s DAX rose 0.5%, France’s CAC 40 jumped 1.2%, and the U.K.’s FTSE 100 advanced 0.3%.
In the technology sector, European semiconductor stocks such as STMicroelectronics and ASML came under pressure, tracking Broadcom’s decline in the U.S. While Broadcom reported a sharp increase in revenue driven by strong AI chip demand, its business outlook failed to satisfy some investors’ expectations.
• ASIAN MARKET :Asian stocks declined on Thursday as investors took profits in technology and semiconductor shares, while uncertainty surrounding a potential U.S.-Iran peace agreement kept market sentiment cautious. Japan’s Nikkei 225 fell 1.9% and the TOPIX lost 1.4% after BOJ Governor Kazuo Ueda said the central bank should consider the pros and cons of raising interest rates amid rising inflation risks. South Korea’s KOSPI also dropped as much as 2%, led by weakness in chipmakers such as Samsung Electronics and SK Hynix, which fell 2%-4% due to profit-taking after reaching record highs.
In China, the CSI 300 and Shanghai Composite slipped 0.2%-0.4%, although losses were limited by continued strength in semiconductor stocks, supported by optimism over AI development and expectations of an index reshuffle. Meanwhile, Hong Kong’s Hang Seng Index declined 1.2% due to weakness in technology shares.
In Indonesia, Parliament passed legislation that strengthens Bank Indonesia’s role in supporting economic growth while granting lawmakers greater authority to evaluate financial regulators and the central bank. The move raised investor concerns about potential political interference in Bank Indonesia’s independence, particularly amid President Prabowo Subianto’s ambition to achieve 8% economic growth. Finance Minister Purbaya Yudhi Sadewa stated that the new rules would expand BI’s mandate to help create an economic environment that supports real-sector growth and job creation.
• COMMODITIES :Oil prices fell on Thursday, snapping a three-day winning streak, after tensions in the Middle East eased slightly following a temporary ceasefire agreement between Israel and Lebanon. Brent crude declined 3.2% to USD 94.74 per barrel, while WTI fell 3.8% to USD 92.41 per barrel. The pullback came after both contracts had gained 6.3% and 9.9%, respectively, over the previous three sessions. Supply disruptions caused by the closure of the Strait of Hormuz remain a key concern for the market, having previously fueled a sharp rise in oil prices and global inflationary pressures. Nevertheless, oil prices have remained below USD 100 per barrel since late May. On the supply side, data from the Energy Information Administration showed that U.S. crude oil inventories fell by 8 million barrels in the week ended May 29, significantly larger than market expectations for a 4 million-barrel decline. In addition, U.S. Strategic Petroleum Reserve (SPR) inventories also fell by 8 million barrels, marking the sixth-largest drawdown since 1982.
• INDONESIA : The JCI closed lower on Thursday at 5,839.78, down 1.7%, pressured by weakness in conglomerate and large-cap stocks. During the first session, the index dropped to an intraday low of 5,644.23, breaking below the 5,800 support level. However, in the second session, sentiment improved as market participants reacted to rumors regarding the possible resignation of Purbaya Yudhi Sadewa. Although the rumor was later denied, the JCI rebounded and closed back above 5,800, forming a hammer candlestick pattern.
Investors are advised to remain cautious heading into the end of the trading week, given the extremely high market volatility and the market’s sensitivity to fiscal-related rumors that tend to trigger negative sentiment.
Download full report HERE.
