US markets extended losses as rising oil prices and a sharp sell-off in tech stocks weighed on sentiment , overshadowing dovish signals from the Federal Reserve. Key Market Moves S&P 500 fell 0.4% to 6,343.72 Nasdaq dropped 0.7% to 20,794.64 Dow Jones rose 0.1% to 45,216.14 Key takeaway: Tech weakness and oil-driven inflation fears are dragging the broader market lower. What’s Driving the Sell-Off? 1. Oil Prices Surge Again Crude oil jumped over 5% to around US$105 Driven by ongoing US–Iran–Israel conflict Higher oil = higher inflation risk = pressure on equities 2. Tech Stocks Lead the Decline Heavy losses in AI, chip, and data-related names: Applied Digital : -13.5% AXT Inc : -13% Micron Technology : -9.9% Arm Holdings : -5% Intel : -4.5% Super Micro Computer : -4.1% AI and semiconductor stocks are facing profit-taking and valuation concerns 3. Fed Comments Not Enough to Lift Sentiment Jerome Powell signaled no immediate rate hikes despite rising energy pri...
KUALA LUMPUR (Oct 3): The FBM KLCI closed down 1.85 points or 0.1% in tandem with the fall in Asian share markets.
At 5pm, the KLCI closed at 1,796.3 points. Across Asia, Japan’s Nikkei 225 declined 0.66% while Hong Kong’s Hang Seng was down 0.13%.
“The FBM KLCI closed down slightly today from yesterday's closing price in tandem with the negative performance of regional peers,” Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com.
Reuters reported that Asian shares slipped on Wednesday as oil prices near four-year highs at above US$85 a barrel threatened to roil emerging economies, while the euro rebounded from six-week lows on reports Italy will reduce its Budget deficit more quickly than expected.
It was reported that the Indian rupee opened at a record low on Wednesday and further weakening of Indonesia's embattled rupiah prompted central bank intervention as an overnight spike in oil prices weighed heavily on the currencies. The rupee and the rupiah are highly exposed to fluctuations in oil prices, because Indonesia and India import most of their oil requirements.
Source: The Edge
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