KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
US equities faltered in late trading Wednesday after Nvidia’s revenue outlook fell short of lofty investor expectations, cooling enthusiasm around the artificial intelligence (AI) trade that has propelled markets to record highs.
Nvidia Fails to Clear a High Bar
Q3 Guidance: Nvidia projected ~US$54 billion in revenue, in line with consensus but below bullish market whispers.
China Factor: Forecast excluded data center revenue from China, leaving uncertainty over geopolitical headwinds.
Market Reaction: Shares slid 2.5% after hours, dragging down tech peers despite an announced US$60 billion buyback.
Context: Nvidia has added ~US$2 trillion in market value since April, making results a bellwether for the AI-driven rally.
Market Moves
The S&P 500 ETF (US$660 billion AUM) dipped after briefly touching a fresh record earlier in the session.
S&P 500 closed up just 0.2%, highlighting investor caution ahead of Nvidia’s numbers.
Treasuries: Short-dated yields fell further on bets of Federal Reserve rate cuts; the 30-year yield held flat.
Policy Overhang: Fed in Focus
Political pressure on the Fed added to uncertainty:
President Donald Trump confirmed the firing of Fed Governor Lisa Cook, citing mortgage-fraud allegations.
Kevin Hassett, Trump’s top economic adviser, said Cook should go on leave while litigation proceeds.
Investors remain on edge over Trump’s broader push to reshape Fed leadership, adding a political dimension to rate expectations.
Investor Takeaways
AI Rally Stretched: Nvidia’s stumble shows that even strong guidance may not be enough when valuations imply perfection.
Fed Dynamics: Markets continue to price near-term easing, but political intervention risks weigh on sentiment.
Next Watchpoints: Investor focus will shift to broader AI supply chain earnings (chipmakers, cloud providers) and Fed’s September meeting.
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