Market Overview: U.S. Equities Decline Amid Geopolitical Tensions
U.S. equities experienced a downturn on Thursday, primarily influenced by stagnation in U.S.–Iran negotiations and disappointing earnings reports within the software sector, particularly from ServiceNow and IBM.
The S&P 500 and the Dow Jones Industrial Average saw a dip of approximately 0.4%, following recent peaks, while the Nasdaq also faced pressure.
Trump’s Directive: Navy Prepared to Respond
In a decisive move, Donald Trump advised the Navy to act swiftly and lethally against any vessels laying mines in critical maritime zones. He emphasized, via a post on Truth Social, that there should be no delay in retaliatory measures.
Financial Market Indicators
U.S. Treasury Yields
Currently, the yield on the 10-year U.S. Treasury note stands at 4.330%, reflecting an increase of 0.008. This rise is largely attributed to escalating oil prices stemming from rising tensions with Iran, thereby intensifying inflationary concerns and pressuring bond markets.
Applied Digital: Major Lease Acquisition
Applied Digital has triumphantly secured a 15-year lease with a prominent U.S. hyperscale company, committing to a capacity of 300 MW at its Delta Forge 1 AI campus.
Valued at around $7.5 billion, this agreement propels the company’s total contracted lease revenue to exceed $23 billion while enhancing income security through investment-grade clients.
Local Economic Conditions
Currency Exchange Rates
The USD/MYR currency pair has risen to 3.9718, reflecting an increase of 0.0193 as the Malaysian ringgit continues to weaken.
This trend emerges amid cautious investor sentiment and a resurgence in the demand for the U.S. dollar.
Heightened geopolitical tensions, especially with Iran, have also contributed to a climate of risk aversion, complicating the strength of emerging market currencies despite optimistic domestic signals.
Sectoral Performance Insights
The KLCI index recorded notable gains, propelled primarily by strong performances in the Industrial Production sector (+2.19%) and Healthcare sector (+1.38%), indicative of burgeoning investor confidence.
Although the Financials and Energy sectors bolstered the index, the Plantation sector lingered in negative territory.
Overall, market sentiment remains tentatively optimistic, spurred by selective investments in cyclical sectors, amidst stable macroeconomic indicators and a burgeoning risk appetite.
Company Spotlight: Foodie Media Bhd
Foodie Media Bhd continued to attract attention on Thursday, surging by 13.24% to close at 0.385, reaching an intraday peak of 0.44.
This robust performance occurred despite a decline of 15.6% in net profit quarter-over-quarter to RM3.19 million for the second quarter of FY2026, although revenue ascended to RM13.19 million.
Margins remained robust at 56.6%, reflecting effective cost management, and the company declared its inaugural dividend, underscoring confidence in future growth amidst sustained demand in digital advertising.
MOOMOO’S Futures Market Insights
Precious Metals
Gold and silver prices faltered on Thursday, remaining below essential moving averages amid a protracted bearish trend since mid-April.
Gold prices hovered around $4,692, while silver experienced a 3% drop, retreating to approximately $75 as geopolitical tensions in the Middle East continued to stoke inflationary fears.
Crude Oil Dynamics
Oil prices rallied on Thursday, with Brent crude recapturing the $100 mark as the White House eagerly awaited Iran’s feedback on postponed diplomatic discussions.
Both Brent and WTI recorded gains near 1.3%, sustained by ongoing supply concerns linked to the standoff in the Strait of Hormuz. Market sentiment remained guarded following Donald Trump’s extension of a ceasefire, while Iran steadfastly refused negotiation overtures.
Cryptocurrency Trends
U.S.-listed spot Bitcoin ETFs notably saw an influx of capital, with seven consecutive days of inflows totaling approximately $1.9 billion, eclipsing the previous March record of $1.2 billion.
Specifically, Wednesday alone yielded $335.8 million in inflows. Collectively, these ETFs presently hold around 1.3 million Bitcoin, worth roughly $103 billion, with BlackRock’s iShares Bitcoin Trust leading the inflows and encompassing over 73%, translating to around $1.4 billion and holdings of 809,870 Bitcoin.
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