Oil breaks US$100, Wall Street retreats and bond yields rise, inflation is becoming the market’s biggest risk again Global markets are starting Thursday in a more defensive position. Brent crude has broken above US$100 a barrel , U.S. Treasury yields are pushing higher, and Wall Street fell for a third straight session as investors reassess whether central banks may need to keep tightening rather than easing. For Malaysian investors, the key chain today is increasingly clear: Oil → inflation → interest rates → bond yields → USD/MYR → Bursa valuations. 30-second market snapshot Market / Asset Latest 🇺🇸 S&P 500 7,636.36, -0.48% 🇺🇸 Dow Jones 52,380.66, -0.77% 🇺🇸 Nasdaq 26,253.34, -0.64% 🇲🇾 FBM KLCI 1,714.34, virtually flat 💵 USD/MYR ~4.06 🇺🇸 U.S. 10Y Treasury ~4.84% 🇺🇸 U.S. 2Y Treasury ~4.42% 🥇 Gold ~US$4,396/oz 🛢️ Brent crude US$101.21/bbl 🛢️ WTI crude US$96.05/bbl ₿ Bitcoin ~US$79,300 🇯🇵 Nikkei ~64,760, -0.6% this morning Brent jumped about 3.4% Wednesda...
Wall Street traders sent US stocks to new all-time highs on Wednesday, with the S&P 500 approaching 5,800 in anticipation of key inflation data. Meanwhile, Treasuries retreated, and the dollar extended its longest winning streak in over two years.
Tech stocks led the gains, with Apple Inc rising 1.7%, while Nvidia Corp paused its five-day rally. Tesla Inc slipped ahead of its Robotaxi launch, and Alphabet Inc dropped 1.5% as the US government considers a Google breakup in a historic antitrust case.
According to Solita Marcelli, CIO at UBS Global Wealth Management, recent volatility in tech stocks presents an attractive buying opportunity, particularly for investors focused on artificial intelligence (AI).
Despite some Fed officials preferring a smaller rate cut during the recent Federal Reserve meeting, S&P 500 rose 0.7%, Nasdaq 100 added 0.8%, and the Dow Jones Industrial Average climbed 1%. The yield on 10-year Treasuries increased by five basis points to 4.06%, and the Bloomberg Dollar Spot Index rose 0.4%, marking an eighth straight session of gains.
The upcoming Consumer Price Index (CPI) report is expected to show inflation moderation, with a 0.1% rise for September — the smallest gain in three months. Compared to the prior year, CPI is forecasted to increase by 2.3%, the slowest pace since early 2021.
Matthew Weller from Forex.com noted that while the Fed has shifted its focus from inflation to the labor market, CPI data may still drive market volatility, especially after the strong jobs report last week. According to a survey by 22V Research, 42% of investors expect the market reaction to CPI to be mixed, while 32% foresee a "risk-off" sentiment.
As the two-year bull market anniversary approaches, analysts like Ed Clissold at Ned Davis Research emphasize that for the rally to continue, inflation must ease, the economy must achieve a soft landing, and corporate earnings growth must remain robust. Meanwhile, billionaire investor Bill Gross suggests that while the market may not enter a bear phase, investors should prepare for lower but positive returns, advising a focus on defensive stocks.
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