Strengthening U.S. dollar could sustain interest in the Technology sector

The market rally may continue, following Wall Street’s positive momentum. With the U.S. election over, attention shifts to the Federal Reserve’s November 7 rate decision, with a 97.5% chance of a 25bps cut expected.

Technology sector

The strengthening U.S. dollar could sustain interest in the Technology sector amid expectations that tariffs may push U.S. inflation higher and limit further rate cuts.

The FBM KLCI gained 0.8%, boosted by increased risk appetite following Bank Negara Malaysia’s decision to keep the Overnight Policy Rate steady at 3% and Donald Trump’s claimed victory in the U.S. election, which strengthened the U.S. dollar. Technology (+6.2%), Construction (+2.7%), and Healthcare (+2.2%) sectors led gains, while Energy (-0.1%) was the top laggard.

Global Markets Review

U.S. stocks surged, with all three indices hitting record highs on Trump’s election win, viewed as favorable for domestic business. European markets fell, pressured by utility shares on fears Trump might stop new offshore wind project approvals. Asian markets were mixed; Japan’s Nikkei 225 rose 2.6%, while Chinese stocks declined over tariff concerns. —- Apex

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