Investors await Fed decision

U.S. equities closed mixed overnight as investors balanced easing geopolitical tensions with concerns over semiconductor weakness. The Dow Jones Industrial Average rose 0.51%, while the S&P 500 edged up 0.02%. The Nasdaq Composite slipped 0.18%, dragged lower by chipmakers including ASML (-6%), AMD, Teradyne, and Micron Technology. Analysts cited intensifying competition from Chinese semiconductor firms and uncertainty over AI-related spending as key headwinds.

Fed decision

Oil markets saw a sharp correction, with Brent crude plunging 11.16% after the U.S. and Iran paused hostilities, easing fears of supply disruptions. European equities gained, with the FTSE 100 up 0.42% and STOXX Europe 600 marginally higher (+0.02%), supported by improved sentiment. Asian markets also advanced, led by Shanghai (+1.15%), KOSPI (+0.97%), Hang Seng (+0.98%), and Nikkei (+0.50%).

Looking ahead, investors await the U.S. Federal Reserve’s FOMC decision on Thursday (MYT). While rates are expected to remain unchanged, markets will scrutinize policy guidance amid lingering inflation concerns. U.S. Core PCE inflation data and earnings from Microsoft, Meta, Apple, and Amazon will provide further clarity on corporate spending and AI capital expenditure. – APEX

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