25/07/2024
Dragged by the continued political uncertainty of the US presidential election, all major US stock indexes closed in the red on Tuesday (23rd). The financial reports released by Tesla and Google's parent company Alphabet after the market closed that day still failed to inspire investor confidence. Led by the decline in technology stocks, major US stock indexes all fell in early trading on Wednesday (24th), with the Dow Jones Industrial Average and the Nasdaq Index falling by more than 400 points at one point. As of 10:30 p.m. Malaysian time on the 24th, the Dow Jones Industrial Average fell 349.92 points (or 0.87%) to 40008.17 points; the Nasdaq Index fell 367.86 points (or 2.04%) to 17629.49 points; the S&P 500 Index fell 78.37 points (or 1.41%) to Reported at 5477.37 points.
Combined with the current global economic environment and the performance of Bursa's gap-down opening today, I believe no one will think that what I said before about Bursa's poor market effect is alarmist. The facts are in front of us. From the chart, the technical pattern shows signs of an "M" top. I believe that people who have learned technical chart analysis know what this means. It is likely to continue to test around 1596 during the week. I decided to continue to maintain Bursa's "wait-and-see" rating.
Because the new round of downturn is not only Bursa, but even the United States, as a global economic benchmark, can go downhill. Steve Clayton, head of Hargreaves Lansdown Equity Fund, admitted that "the mid-term earnings season has begun, and so far, investors are disappointed with what they have seen."
Emmanuel Cau, head of European equity strategy at Barclays, pointed out that mixed performance, weak economic activity data, and high political uncertainty have kept the market nervous, and investors have become more defensive in their portfolios.
