KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
As Wall Street tiptoes near record highs, investors are shifting their gaze—from political tension to the real test: corporate earnings.
With Big Tech lined up to report and early results exceeding expectations, the market’s rally now hinges on whether profits can deliver—or disappoint.
1. Earnings = Market's New Lifeline
Forget tariffs (for now). The real story is in the numbers.
So far, 85% of S&P 500 companies reporting have beaten earnings estimates, with banks leading the charge thanks to higher trading revenues and consumer strength.
Analyst Michael Arone sees Q2 earnings growth hitting 9%—almost double what was expected just weeks ago.
If results keep surprising to the upside, this could fuel the next leg up in the rally.
2. Tariffs Still Lurking in the Shadows
President Trump’s 10% global tariffs kicked in on April 5, and another hike looms on August 1.
But markets have mostly shrugged them off—so far.
Why? Because many now believe in the “TACO trade”:
“Trump Always Chickens Out”
Investors see the tariff threats as pressure tactics—not policy certainties.
3. The Fed Factor: Powell in the Hot Seat
A Bloomberg report claiming Trump might fire Fed Chair Powell caused a brief market panic. But Trump said he has “no plans” to remove him—for now.
Still, the drama hints at increasing political pressure on the Fed, just as inflation data and rate expectations get murky.
Markets are watching closely for signs of any shift in central bank independence.
4. The Big Week Ahead: Tech Titans Take the Stage
This week’s lineup could make or break the rally:
Tuesday: Coca-Cola (KO)
Wednesday: Alphabet (GOOGL), Tesla (TSLA), T-Mobile (TMUS), AT&T (T)
Thursday: Intel (INTC), Blackstone (BX), Deutsche Bank (DB), Nasdaq Inc. (NDAQ)
Expect attention on AI spending, cost pressures from tariffs, and guidance for the rest of 2025.
5. Can Earnings Cool Down August’s Seasonal Jitters?
Historically, August–September are the weakest months for U.S. stocks. Combine that with lingering trade and Fed uncertainty, and this rally isn’t in the clear just yet.
But as long as Big Tech doesn’t disappoint, and tariffs remain just noise, this earnings season could carry the market to new highs.
Final Take:
Earnings now hold the reins.
If companies deliver—and Trump’s tariff threats stay just that—investors may ride this momentum through the summer heat.
But one weak earnings surprise… and the rally could stumble.
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