KUALA LUMPUR, Jan 7 (Bernama) -- Bursa Malaysia’s benchmark index rebounded from earlier losses to close at its intraday high on Wednesday, gaining 0.27 per cent in late trading as buying interest returned to selected heavyweights. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 4.48 points to 1,676.83 from Tuesday’s close of 1,672.35. The benchmark index opened 0.88 of-a-point lower at 1,671.47 and subsequently hit a low of 1,665.94 during the mid-morning session before gaining momentum toward closing. On the broader market, losers led gainers by 565 to 512, while some 526 counters were unchanged, 1,046 untraded, and 10 suspended. Turnover improved to 2.73 billion units worth RM2.76 billion versus Tuesday’s 2.66 billion units worth RM2.76 billion. Dealers said that investors were cautious following geopolitical developments in Asia.
Market Comeback Hits a New Milestone
After months of volatility, the S&P 500 briefly surpassed its all-time high of 6,144.15 on Thursday — marking its first visit back to record territory since February. While it didn’t close above that level, it reflects a strong 23% rebound from the index’s April lows.
The Nasdaq Composite and Nasdaq-100 have also climbed back to record levels, powered by tech stocks that have surged over 30% since April 8. In contrast, the Dow Jones has lagged, rising only 14% and remaining 4% below its peak.
Why the Rally?
Several catalysts have helped:
Tariff tensions eased as President Trump softened his stance.
Cooling inflation in May’s CPI report.
Oil prices tumbled, lowering cost pressures.
Middle East tensions eased, reducing geopolitical fears.
These events combined to stabilize market sentiment and restore confidence.
MoneyMaster Take:
The rebound is real — markets have shaken off tariff fears and found support in improving macro data.
Tech is still leading the charge, but watch for rotation into lagging sectors if breadth improves.
Investors are waiting for the next big signal, and that could be tomorrow’s May PCE inflation report.
What’s Next for the Market?
Here are three major catalysts to watch:
🟡 May PCE Report (June 28):
A tame core PCE reading (expected at +0.1% MoM) could confirm inflation is easing, giving the Fed more room to cut rates — possibly as early as September.
🟡 Trump’s July 4 Bill Deadline & July 9 Tariff Talks:
Progress or delays on these two policy fronts could swing market sentiment sharply.
🟡 Q2 Earnings (Mid-July):
Investors will look for clarity on how companies managed through April-May tariff risk and consumer spending trends.
Smart Moves:
Stay diversified, but keep overweight positions in leading tech and AI.
Watch bond yields — falling yields + soft PCE = bullish equities.
Trim if extended, but don’t chase FOMO without checking key inflation and earnings signals.
Bottom Line:
The S&P 500’s comeback shows the market is ready to run — but it’s looking for fuel. Inflation data, tariff clarity, and earnings season will decide whether this rally turns into a breakout or stalls at resistance.
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