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...
Options Trading Shift
Advanced Micro Devices (AMD) overtook Tesla on Wednesday to become the second most actively traded stock option, trailing only Nvidia. Options volume for AMD reached 1.77 million contracts, surpassing Tesla’s 1.70 million, while Nvidia maintained the lead at 2.35 million. The spike came as AMD’s share price climbed to its highest in over a year, marking a second consecutive day of gains.
China Export Outlook Boosts Sentiment
The rally followed confirmation from former US President Donald Trump that both AMD and Nvidia will pay a 15% fee to the US government on chip sales to China. This announcement eased investor concerns over AMD’s China shipments, which had been clouded by export license reviews. Last week, AMD had cited “headwinds” affecting its Instinct MI308 shipments to the country, raising uncertainty about near-term revenue.
Analyst Projections Remain Strong
Even before factoring in resumed China sales, JPMorgan analysts led by Harlan Sur projected AMD would sell roughly $7 billion worth of MI3XX GPUs in 2025, up from their previous $6.5 billion forecast. The new export fee could allow shipments to proceed, potentially solidifying this bullish outlook.
Short-Dated Calls Dominate Activity
The heaviest trading was in call options with a $185 strike expiring this Friday. Volume in this contract jumped nearly eight-fold to 190,010 contracts—more than nine times existing open interest—as traders bet on the stock closing above the strike. AMD ended the session less than $0.60 below that level.
Caution Flags Remain
Despite the rally, Morningstar analyst Brian Colello maintained a “very high uncertainty” rating on AMD. He warned that the 15% export fee acts as a direct tax on gross margins and that the legal and structural details remain unresolved. Colello also noted that the global regulatory landscape for AI is unpredictable, and the long-term growth trajectory for the sector is still unclear.
With heightened options activity, an improved China sales outlook, and analyst optimism on GPU demand, AMD has drawn renewed investor interest—but regulatory and margin pressures remain key risks to watch.
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