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 (Jan 7): The FBM KLCI gained 13.28 points or 0.83% to close at 1,611.04 today, as the apparent easing of the Middle East geopolitical tension following the US' air strike in Iraq, supported global shares' rise.
Crude oil prices however fell, amid apparent easing of the geopolitical tension.
According to Rakuten Trade Sdn Bhd research vice president Vincent Lau, the KLCI's gain today was on account of investors tempering their expectations that the US' drone strike which killed top Iranian commander Qassem Soleimani on Friday, will become a full-blown war.
Reuters reported Asian shares rebounded on Tuesday, as investors' reassessed the risk of an all-out conflict between the US and Iran, while Wall Street battled back to the black, as tech stocks climbed.
It was reported that oil surrendered hefty gains, as some speculated Iran would be unlikely to strike against the US in a way that would disrupt supplies, and its own crude exports. It was reported that Brent crude fell as much as 1.5% to US$67.86 a barrel and was at US$68.39, down 52 cents at 0737 GMT.
In Malaysia, Lau told theedgemarkets.com: “Today’s (KLCI) performance is also in line with gains posted in other key regional markets. In addition, the price of oil has slightly dipped."
At 5pm today, the KLCI closed up after falling 13.62 points or 0.85% to 1,597.76 yesterday, as the US' air strike in Iraq dented global equity investor sentiment.
Across Bursa Malaysia, 2.99 billion shares worth RM1.8 billion were traded. A total of 441 counters registered gains, while 388 declined.
Top gainers included KLCI stocks PPB Group Bhd, Axiata Group Bhd and RHB Bank Bhd.
Most-active stocks included oil and gas-related Alam Maritim Resources Bhd and Sapura Energy Bhd.
Top-active stock Alam Maritim registered a volume of some 192 million shares. Its share price closed down 0.5 sen or 2.7% at 18 sen.
Source: The Edge
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