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 (July 30): The FBM KLCI recouped earlier losses to close 7.67 points or 0.48% lower after tanking by some 25 points in reaction to Umno's departure from the Perikatan Nasional alliance.
At 5pm, the benchmark index ended at 1,603.75. It had opened at a high of 1,614.35 before falling below the 1,600 level to 1,584.95 at 4pm.
A total of 11.92 billion shares were traded for RM6.16 billion, led by 688 losers and 390 gainers.
Umno president Datuk Seri Dr Ahmad Zahid Hamidi earlier announced in a statement that the party would be leaving the informal Perikatan Nasional (PN) coalition and would instead strengthen its Muafakat Nasional (MN) pact with PAS, and the other component parties of Barisan Nasional (BN).
He added that Tan Sri Muhyiddin Yassin met with BN lawmakers at the Parliament yesterday afternoon and expressed Parti Pribumi Bersatu Malaysia's desire to join MN.
Ahmad Zahid said that Bersatu's wish to join the coalition will be discussed with PAS.
Malacca Securities Sdn Bhd's head of research Loui Low said despite the political developments that have caused the KLCI to dip, he still sees some good bargain-hunting opportunities going into next week.
"Even if there could be any political developments during the weekend, it's still a good opportunity to buy given that the next reporting season is coming up. Certain sectors like glove companies are expected to do well," he told theedgemarkets.com.
Dragging the index was banking giant Public Bank Bhd, which fell 54 sen or 3.08% to RM17 apiece after the government announced an extended loan moratorium on selected groups of people.
Some glove counters were also down today, with Top Glove Corp Bhd falling 26 sen or 0.99% to RM25.88 and Kossan Rubber Industries Bhd down by 32 sen or 1.79% to RM17.60.
Over in Asia, markets were mostly negative, reflecting fragile investor sentiment amid rising Sino-US tensions and surging coronavirus cases, said Reuters.
Japan's Nikkei 225 index closed 0.26% lower, though South Korea's Kospi index gained 0.17%. In China, the Hang Seng fell 0.69% while the Shanghai Composite Index dipped 0.23%.
Source: The Edge
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