Today’s Outlook :
• US MARKET : Wall Street movements were driven by a rally in chipmaker stocks after industry giant Advanced Micro Devices (AMD) posted strong first-quarter earnings and provided a positive outlook for the industry. Demand for servers and data center infrastructure fueled by the AI trend became the main driver of its performance.
This pushed the tech-based NASDAQ Composite to lead gains on Wednesday, rising 2% to a new record high of 25,838.94 points. Meanwhile, S&P 500 jumped 1.5% to an all-time high of 7,365.03 points, while the Dow Jones Industrial Average rose 1.2% to 49,910.59 points. AMD shares themselves surged nearly 19% on Wednesday, while the Philadelphia Semiconductor Index jumped 4.5% to a new record high.
Wall Street indexes recorded a series of new highs throughout the week, mainly driven by signs of easing tensions between the U.S. and Iran. Media reports stated that the White House believes it is getting closer to reaching a deal with Iran to end the war, with both parties expected to continue more detailed negotiations regarding Tehran’s nuclear activities. Separately, President Donald Trump also expressed an optimistic tone regarding the potential end of the war with Iran.
Earlier this week, Trump temporarily halted military operations aimed at reopening commercial shipping lanes in the Strait of Hormuz. Oil prices then fell sharply on the sentiment, while risk assets rallied.
• EUROPEAN MARKET :European stocks surged on Wednesday as investors monitored growing hopes that a peace deal between the U.S. and Iran was getting closer. The pan-European Stoxx Europe 600 soared 2.2%, while Germany’s DAX rose 2.1%, France’s CAC 40 gained 2.9%, and the UK’s FTSE 100 advanced 2.2%. U.S. President Donald Trump stated that the Strait of Hormuz would be “open to all parties” if Iran agreed to U.S. demands. The statement strengthened market optimism that a deal to end the Middle East conflict was getting closer to reality.
• ASIAN MARKET : Asian stocks rose on Wednesday, driven by growing hopes of easing tensions in the U.S.-Iran war. Meanwhile, an AI-driven rally in technology stocks pushed the South Korean market to a new record high.
Asian markets generally moved positively, with Chinese shares reopening higher after a long holiday, while Australian stocks recovered after previously recording a series of declines due to the hawkish stance of the central bank.
Japanese markets were closed that day. In Asia, the CSI 300 and Shanghai Composite Index each rose more than 1% as trading resumed after the long holiday. Strongerthan-expected April private PMI data—which showed increased activity in the services sector—also supported sentiment. Meanwhile, Hong Kong’s Hang Seng Index rose 0.9%, supported by gains in technology shares.
South Korea’s KOSPI was the best-performing market in Asia, surging nearly 7% to a record high of 7,411.62 points. The gains were mainly driven by a rally in chipmaker stocks after AMD posted strong earnings and provided an optimistic industry outlook.
• COMMODITIES: U.S. crude oil prices rose about USD 1 in early Thursday trading, rebounding from the sharp decline the previous day as investors assessed the prospects of a peace agreement in the Middle East.
West Texas Intermediate (WTI) crude rose 80 cents, or 0.8%, to USD 95.88 per barrel as of 22:23 GMT, after briefly touching USD 96.33 earlier in the session. Previously, the benchmark contract had plunged around 7% on Wednesday amid optimism that the Middle East war could soon end, following reports that the U.S. and Iran were nearing an initial peace agreement.
Iran said on Wednesday that it was reviewing a U.S. peace proposal which, according to sources, would formally end the war but had yet to resolve key U.S. demands for Iran to halt its nuclear program and reopen the Strait of Hormuz. An Iranian Foreign Ministry spokesperson quoted by ISNA stated that Tehran would soon deliver its official response. U.S. President Donald Trump said he believed Iran wanted a peace agreement
• INDONESIA : The JCI managed to strengthen again by 0.5% in the green zone to 7,092.47. The market will next test the 7,200 resistance level, and the JCI still appears capable of further gains supported by conglomerate stocks. However, given that conditions remain unconducive, it is better to focus on scalping for now, although the market still has the opportunity to move higher following Wall Street’s euphoria and easing U.S.-Iran tensions.
Investors should remain cautious of selling pressure from big banks. Although valuations are attractive, selling pressure remains substantial amid Indonesia’s macroeconomic contraction. Meanwhile, despite commodities still facing negative sentiment from potential windfall taxes, continued strength in commodities could provide buy-on-weakness opportunities.
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