U.S. 10Y touches 5%, AI stocks tumble and oil stays above US$105 markets brace for tomorrow’s Fed decision Global markets enter Tuesday with three pressure points converging: U.S. borrowing costs briefly crossed 5%, oil remains above US$100, and the AI trade suffered a sharp reset overnight . The S&P 500, Dow and Nasdaq all closed lower Monday, while the Philadelphia semiconductor index plunged 5.9% . For Malaysian investors, there was one encouraging counterpoint: the FBM KLCI rebounded 0.66% to 1,698.01 , snapping four consecutive losing sessions despite the difficult global backdrop. 30-second market snapshot Market / Asset Latest 🇺🇸 S&P 500 7,619.98, -0.48% 🇺🇸 Dow Jones 52,421.20, -0.29% 🇺🇸 Nasdaq 26,186.41, -0.56% 🇲🇾 FBM KLCI 1,698.01, +0.66% 💵 USD/MYR ~4.04–4.05 🇺🇸 U.S. 10Y Treasury briefly >5%; ~4.98% later 🥇 Spot gold ~US$4,313/oz, -0.8% 🛢️ Brent US$105.68/bbl, +~1% ₿ Bitcoin ~US$79,150, +~2% Monday The dollar strengthened Mo...
Malaysia’s market opened with mixed signals as strong global sentiment contrasts with local profit-taking, while the IMF upgraded the country’s 2026 GDP outlook, reinforcing medium-term optimism.
Wall Street Gains on Easing Geopolitical Risks
US markets closed mostly higher as optimism grew that the US-Iran conflict may be nearing an end:
- S&P 500 +0.8%
- Nasdaq Composite +1.59%
- Dow Jones Industrial Average -0.15%
Technology stocks led gains, driven by continued AI enthusiasm and corporate developments:
- Tesla +7.6% on AI chip progress
- Oracle +4.2% on energy deal
Lower geopolitical risks are expected to ease oil prices and inflation pressures, supporting equities.
KLCI Slips on Profit-Taking in Heavyweights
The FTSE Bursa Malaysia KLCI edged 0.28% lower to 1,683.42, as gains were capped by profit-taking in financial and utility stocks.
- Top gainer: Axiata Group +3.72%
- Top loser: Petronas Chemicals -4.58%
Weakness was concentrated in energy and yield-sensitive sectors, partly due to softer crude oil prices.
IMF Raises Malaysia Growth Forecast
The International Monetary Fund (IMF) upgraded Malaysia’s 2026 GDP growth forecast to 4.7%, up from previous estimates.
- 2027 growth projected at 4.3%
- Reflects resilient domestic demand and economic fundamentals
This reinforces Malaysia’s position as a stable growth market in Southeast Asia, despite global uncertainties.
Ringgit Slightly Weaker
The USD/MYR pair traded at 3.955 (+0.1%), indicating mild currency pressure, likely reflecting external factors and capital flows.
Stocks to Watch: Strong Corporate Developments
- ITMAX System secured a RM603.5M AI surveillance contract, boosting growth visibility
- Infomina reported strong earnings (+7.5% YoY profit, +50% revenue)
- MGB won a RM34.8M Saudi project, supporting overseas expansion
- LBS Bina Group settled a RM43M dispute at RM7M, reducing legal overhang
- Tropicana Corp continued debt reduction efforts
- Tanjung Setia secured a RM359M construction contract
Investor Takeaways
- Global sentiment is improving, with easing geopolitical tensions supporting US equities.
- KLCI remains under pressure, due to profit-taking in heavyweights and energy stocks.
- IMF upgraded Malaysia’s GDP forecast to 4.7%, signaling strong economic resilience.
- Corporate earnings and contract wins continue to support selective stock opportunities.
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