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...
Key Takeaways
The Dow briefly hit a record high at 44,959.68, led by Home Depot’s 4.6% rally.
The Nasdaq fell 1%, pressured by Nvidia (-2.1%) and Microsoft (-1.4%).
Retail earnings in focus: Lowe’s, Walmart, Target due this week.
Fed Vice Chair Michelle Bowman, seen as a Powell successor, backs three rate cuts this year.
Markets expect two 25-basis-point cuts, with the first likely in September.
Sector rotation: real estate up 1.2%, tech and communications down more than 1.2%.
Movers: Intel +7.4% (SoftBank $2B injection), Palo Alto Networks +4.2% (strong guidance), Medtronic -3.8%(activist pressure).
Home Depot Boosts Dow While Tech Slips
The Dow Jones Industrial Average briefly touched an all-time high on Tuesday, driven by a surge in Home Depot shares. The home-improvement retailer gained 4.6% after reaffirming its annual forecast, even as it missed quarterly earnings estimates. Rival Lowe’s rose 1.9%, and attention now turns to Walmart and Target’s results later this week for clues on consumer spending resilience.
Meanwhile, the Nasdaq Composite slid 1% to its lowest level in a week, weighed down by declines in Nvidia and Microsoft, both of which had rallied strongly earlier this year. The S&P 500 also dipped, reflecting weakness in technology and communications sectors.
Fed Policy in Focus
Investors remain cautious ahead of the Federal Reserve’s Jackson Hole symposium (Aug. 21–23). Chair Jerome Powell’s remarks will be closely watched for direction on monetary policy.
Vice Chair for Supervision Michelle Bowman, a potential candidate to replace Powell when his term expires, is set to speak later in the day. Bowman has expressed support for at least three rate cuts this year, aligning with President Trump’s push for lower borrowing costs.
Futures markets, however, point to two quarter-point cuts in 2025, with the first expected in September, according to LSEG data.
Market Performance at Midday
At 11:42 a.m. ET:
Dow Jones: +47.86 points (+0.11%) at 44,959.68
S&P 500: -21.89 points (-0.34%) at 6,427.26
Nasdaq Composite: -216.62 points (-1.01%) at 21,413.16
Seven of the 11 S&P 500 sectors gained. Real estate led with a 1.2% increase on strong housing data, while technology and communications services each fell more than 1.2%.
Notable Movers
Intel surged 7.4% after securing a $2B capital injection from SoftBank, reaching its highest level since February.
Palo Alto Networks rose 4.2% after issuing upbeat fiscal 2026 revenue and profit forecasts.
Medtronic declined 3.8% after announcing two new board appointments under pressure from activist investor Elliott.
Broader Market Context
U.S. equities have rebounded strongly from April’s trade-driven lows, supported by robust earnings and expectations of policy easing. Still, markets are bracing for Powell’s Jackson Hole remarks, which could set the tone for monetary policy into the fall.
Market breadth was mixed: advancing issues outnumbered decliners 1.31-to-1 on the NYSE, while decliners led 1.51-to-1 on the Nasdaq. The S&P 500 posted 11 new 52-week highs and one new low, while the Nasdaq logged 48 new highs and 46 new lows.
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