MONEY MASTER

Asian trading opened cautiously after  mixed U.S. tech earnings  and a  Federal Reserve signal of a potential rate pause , while local equities found support from selective buying in blue chips. Overnight on Wall Street Global markets took a breather as  tech results sent mixed signals . Meta Platforms (–11.3%)  plunged after outlining higher AI spending and a one-time tax hit, despite beating profit forecasts. Microsoft (–2.9%)  slipped on investor concerns over rising AI capital expenditure. In contrast,  Amazon (+13% after hours)  surged after reporting its  fastest AWS growth in nearly three years , while  Apple (+2% after hours)  offered a  strong holiday quarter outlook . Major indices retreated: Nasdaq Composite:  23,581.14 (–1.57%) S&P 500:  6,822.34 (–0.99%) Dow Jones:  47,522.12 (–0.23%) A brief  U.S.–China trade thaw  provided some relief, with a  10% U.S. tariff cut  and  ...

  Beijing’s Tech Push Gains Momentum China’s tech giants Alibaba Group and Baidu Inc have begun deploying their own internally designed chips to train artificial intelligence (AI) models, marking a strategic shift away from heavy reliance on Nvidia processors, according to a report by  The Information . Alibaba and Baidu’s In-House Efforts Alibaba : Has used its self-designed chips since early 2025 to train smaller-scale AI models. Baidu : Is testing its Kunlun P800 chip to train updated versions of its flagship Ernie AI model. Both companies are still deploying Nvidia’s hardware for their most advanced AI projects, but the gradual shift underscores the effort to reduce vulnerability to US export restrictions. Why It Matters The move comes amid escalating US curbs on the export of advanced AI semiconductors to China, which have disrupted access to Nvidia’s latest processors. In response, Beijing has stepped up pressure on domestic firms to accelerate adoption of homegrown tech...

Magnificent Seven Face Growing Scrutiny After months of powering Wall Street’s gains, the  Magnificent Seven tech giants  — Amazon, Alphabet, Apple, Meta, Microsoft, Nvidia, and Tesla — are losing steam. Rising doubts about  AI’s near-term profitability , stretched valuations, and shifting capital into other sectors have raised concerns about how much further tech can run. Nvidia earnings ahead : Seen as a critical test for the sector’s momentum. Rotation in play : Energy, materials, and real estate all outperformed tech last week. Tech lagging despite Powell boost : Even with Powell’s dovish hints on rate cuts, the tech-heavy Nasdaq dropped 1.6% for the week. Why Investors Are Pulling Back Valuations stretched : Investors like Joshua Boyer are trimming holdings, citing overextended prices relative to earnings. Retail selling picks up : For the first time in two months, retail investors were  net sellers , focusing on names like Palantir, Alphabet, and Broadcom (JPMo...

Amazon’s stock options trading soared Thursday, jumping to over 794,700 contracts —more than double the previous day and well above its 20-day average. This surge landed Amazon among the top seven most active options, joining names like Tesla, Nvidia, and Alphabet. Why the sudden interest? Investors are eyeing  Amazon’s upcoming earnings report next week , which could reveal more about its  AI investments and future spending . What Analysts Are Watching According to Bloomberg Intelligence, Amazon’s earnings may meet expectations, but the spotlight will be on its capital spending. Analysts believe  Amazon will likely stay committed to big investments in Amazon Web Services (AWS) despite a potentially slower second half of the year. Its cloud rival, Alphabet (Google's parent company), recently  raised its 2025 capital spending to $85 billion , a signal that tech companies are ramping up infrastructure for AI and cloud services. Amazon Still a Powerhouse AWS holds about...

As the Q2 earnings season kicks off, all eyes are on  Big Tech , with Netflix set to report first on July 17. These earnings are poised to shape broader market sentiment amid ongoing economic uncertainty and aggressive U.S. tariff policies. Despite macro headwinds, the outlook for tech giants remains relatively strong — especially in  AI chips ,  cloud services , and  digital advertising . Key Standouts from Q2 Estimates (YoY Growth) Company Revenue Growth EPS Growth Nvidia (NVDA) +51.86% +38.66% Netflix (NFLX) +15.53% +44.80% Meta (META) +14.25% +13.68% Microsoft (MSFT) +14.02% +14.45% Alphabet (GOOGL) +10.73% +14.92% On the flip side: Tesla (TSLA)  is expected to report a  -12.04% revenue drop  and a  -20.52% EPS slump , weighed by weak EV sales. Apple (AAPL)  is also seeing soft momentum with  3.49% revenue growth , signaling slower iPhone shipments. AI Is the Center of Gravity Nvidia  remains the flagship AI play. Explosive dema...

The  February Consumer Price Index (CPI)  data released this Wednesday showed inflation cooling more than expected, offering a brief respite for markets that have been rattled by  trade tensions  and  valuation concerns . Here's an overview of how the data affected the market: Key CPI Data Highlights: Headline CPI  increased by  0.2% month-over-month , below the  0.3%  economists anticipated. Core CPI  (excluding food and energy) rose  0.3% , also missing forecasts. On an  annual basis , headline inflation eased to  2.8%  from  3.0%  in January, indicating that price pressures might be stabilizing. Market Response: The  Nasdaq Composite  jumped  over 1% , while the  S&P 500  added  0.8%  in early trading. The  Dow Jones Industrial Average , however, closed  down 0.2% , weighed down by  trade-exposed industrials . 10-year Treasury yields  fell by...

  Massive Tech Investments in the U.S. Major tech firms, including Apple, OpenAI, Meta, Microsoft, and Amazon, have committed over $1 trillion in U.S. investments. President Trump took credit for the pledges , though many plans were already in motion before his administration. Key Investment Announcements 1. Apple: $500 Billion Focus:  AI server production, supplier expansion, and new jobs. Jobs:  20,000. Locations:  Houston & Detroit. 2. OpenAI, SoftBank & Oracle (Stargate JV): Up to $500 Billion Focus:  AI infrastructure, massive data center projects. Jobs:  “Hundreds of thousands.” Initial Investment:  $100 billion. Location:  Texas (first project in Abilene). 3. SoftBank: $100 Billion Focus:  AI, semiconductors, and data centers. Jobs:  100,000. Key Investment Area:  Texas. 4. Meta: $65 Billion Focus:  AI computing, large-scale data centers. Location:  Louisiana. 5. Microsoft: $40+ Billion Focus:  AI and c...

Starting January 1 , major tech companies working with UK financial institutions will face stricter oversight under new regulations designed to mitigate risks posed by critical third-party suppliers . The Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) will gain powers to take action if service providers present risks to the financial system. These critical third parties will be required to co-operate with regulators during incidents, ensuring proper documentation of risk management and security protocols . Additionally, the FCA and PRA could demand section 166 reports from tech companies, similar to existing requirements for the finance sector, to assess internal processes. As banks increasingly outsource IT infrastructure to tech giants, potential disruptions pose significant risks to market stability. The recent CrowdStrike Holdings outage in July highlighted these concentration risks. Roughly 70% of banks and 80% of insurers rely on just two clou...

As Donald Trump returns to the White House, Silicon Valley prepares for a drastically altered relationship with the US government, with AI regulations, antitrust enforcement, and semiconductor policies taking center stage. On artificial intelligence (AI) , Trump has vowed to dismantle an executive order from President Biden that sets safety standards and privacy guidelines for AI development. He has criticized the policy as "dangerous" and restrictive, proposing a new approach rooted in "AI development rooted in free speech." This shift could alter the AI landscape, emphasizing rapid innovation over security, with expanded energy capacity potentially easing land and electricity permitting hurdles . The antitrust landscape is also likely to shift, with a friendlier stance toward mergers and acquisitions. Although Trump is expected to maintain lawsuits targeting Big Tech, changes in leadership at the Federal Trade Commission (FTC) and Justice Department might f...

ByteDance Ltd , the Chinese tech giant behind TikTok , is set to sign a US$10.8 billion (RM44.7 billion) corporate loan, marking the largest-ever dollar-denominated corporate facility in Asia , excluding Japan. The deal, funded by about 20 international and Chinese banks , exceeds the initial target of US$9.5 billion , highlighting continued lender confidence despite the company's challenges. The loan, coordinated by Citigroup , Goldman Sachs , and JPMorgan , has a three-year tenure, extendable to five years, with part of the proceeds used to refinance a previous US$5 billion facility raised in 2021. This financing comes as ByteDance navigates US scrutiny and competition in the AI race . Founded in 2012, ByteDance is leveraging its Douyin platform in China to expand into e-commerce , while TikTok continues its international growth, including plans to introduce its live shopping platform across more European markets. Additionally, the company's venture into generative AI ...

Huawei Technologies Co. is set to unveil new products at an event scheduled just hours after Apple Inc. introduces its iPhone 16 on September 9, setting the stage for a direct competition between the two tech giants. Richard Yu, the head of Huawei's consumer group, announced the September 10 event on Weibo, hinting at "an epoch-making product" that has been five years in the making. Key Takeaways: Innovative Product Unveilings : Huawei is expected to introduce the world's first commercial-ready smartphone that folds twice, a groundbreaking development in the foldable phone market. This new "trifold" device would feature a large, tablet-like screen that fits within the dimensions of a typical smartphone, signaling Huawei's continued innovation in foldable technology. Additionally, the company is preparing to launch a new Aito electric vehicle, though the final lineup of products could still change. Strategic Timing Against Apple : By scheduling its launch...

As the earnings season unfolds, US companies are under pressure to meet high investor expectations, especially in the technology sector. This anticipation is heightened for technology giants like Nvidia and Microsoft, which have buoyed recent stock market rallies. However, a slight dip in the S&P 500 and Nasdaq on Thursday, triggered by a softer-than-expected US inflation reading, saw investors shift focus to real estate, utilities, and small-cap companies. Key Takeaways: High Expectations for Tech Sector : S&P 500 companies are expected to report a 10.1% year-over-year increase in second-quarter earnings, driven largely by technology giants such as Nvidia and Microsoft. These companies have been pivotal in recent stock market rallies, thanks to strong revenue forecasts and the growing influence of artificial intelligence. Optimistic Earnings Season : Investors are optimistic heading into this earnings season, buoyed by positive earnings estimates from AI-driven companies. This...