![MARKET PULSE AM JULY 23, 2025 [WATCH]](/_next/image?url=https%3A%2F%2Fassets.nst.com.my%2Fimages%2Farticles%2FHQ2409093682bursa_1753239636.jpg&w=3840&q=100)
MARKET PULSE AM JULY 23, 2025 [WATCH]
Bursa Malaysia's 30-stock index opened higher due to the improving sentiment across the region.
The market sentiment is expected to remain on a positive tone, supported by optimism ahead of Tesla and Alphabet's earnings.
The FBM KLCI is expected to remain within a range of between 1,520 and 1,530.
In the cryptocurrency market, Bitcoin rose to RM501,442.
Ethereum showed a positive trend, rising to RM15,658, while Solana traded at RM853.
That's it for Market Pulse.
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The Star
an hour ago
- The Star
S&P 500 and Nasdaq notch record closes, lifted by Alphabet
A street sign for Wall Street is seen outside the New York Stock Exchange in Manhattan, New York City THE S&P 500 and the Nasdaq notched record high closes on Thursday as robust results from Google parent Alphabet fueled optimism about other heavyweight artificial intelligence stocks, while Tesla slumped after the electric vehicle maker's results disappointed investors. Alphabet rose 1% as the search giant's results boosted confidence that heavy investment in a race to dominate AI technology is paying off. Shares of Microsoft, Nvidia and Amazon each climbed 1% or more. The U.S.-Japan trade deal and recent signs of progress in talks with the European Union also fueled Wall Street's gains. "Investors are feeling optimistic about trade negotiations, about the economy, the trend in inflation, as well as the better-than-expected Q2 earnings reports," said Sam Stovall, chief investment strategist at CFRA Research. Tesla tumbled 8.2% after CEO Elon Musk warned of a "few rough quarters" as the U.S. government cuts support for electric vehicle makers. The stock has fallen around 25% so far in 2025. UnitedHealth fell 4.8% after the insurer revealed it was cooperating with a Department of Justice probe into its Medicare practices, following reports of both criminal and civil investigations. IBM dropped almost 8% after its second-quarter results fell flat with investors, hampered by disappointing sales in its core software division. Honeywell fell 6.2% despite topping Wall Street's expectations and raising its annual outlook. The S&P 500 crept up 0.07% to end the session at 6,363.35 points. The Nasdaq gained 0.18% to 21,057.96 points, while the Dow Jones Industrial Average declined 0.70% to 44,693.91 points. Volume on U.S. exchanges was relatively heavy, with 19.9 billion shares traded, compared to an average of 17.8 billion shares over the previous 20 sessions. Eight of the 11 S&P 500 sector indexes declined, led lower by consumer discretionary, down 1.23%, followed by a 0.75% loss in materials. American Airlines tumbled nearly 10% after the carrier forecast a big third-quarter loss, hurt by sluggish domestic travel demand. U.S. President Donald Trump's global trade war has created the biggest uncertainty for the airline industry since the COVID-19 pandemic. Markets were also monitoring Trump's planned visit to the Federal Reserve's headquarters on Thursday, following months of the president criticizing Fed Chair Jerome Powell for interest rates that Trump views as too high. With the Fed widely expected to hold rates steady at next week's meeting, traders see a 60% chance of a September rate cut, according to CME's FedWatch tool. A U.S. Labor Department report showed jobless claims last week fell to 217,000 - well below estimates - signaling continued resilience in the job market. U.S. business activity gained momentum in July, but companies hiked prices on goods and services, fueling economists' predictions of faster inflation in the months ahead, largely driven by rising import tariffs. Declining stocks outnumbered rising ones within the S&P 500 by a 1.3-to-one ratio. The S&P 500 posted 46 new highs and 6 new lows; the Nasdaq recorded 81 new highs and 44 new lows. - Reuters

The Star
an hour ago
- The Star
S&P 500 and Nasdaq notch record closes
NEW York: The S&P 500 and the Nasdaq notched record high closes on Thursday as robust results from Google parent Alphabet fuelled optimism about other heavyweight artificial intelligence stocks, while Tesla slumped after the electric vehicle maker's results disappointed investors. Alphabet rose 1% as the search giant's results boosted confidence that heavy investment in a race to dominate AI technology is paying off. Shares of Microsoft, Nvidia and Amazon each climbed 1% or more. The US-Japan trade deal and recent signs of progress in talks with the European Union also fuelled Wall Street's gains. "Investors are feeling optimistic about trade negotiations, about the economy, the trend in inflation, as well as the better-than-expected Q2 earnings reports," said Sam Stovall, chief investment strategist at CFRA Research. Tesla tumbled 8.2% after CEO Elon Musk warned of a "few rough quarters" as the US government cuts support for electric vehicle makers. The stock has fallen around 25% so far in 2025. UnitedHealth fell 4.8% after the insurer revealed it was cooperating with a Department of Justice probe into its Medicare practices, following reports of both criminal and civil investigations. IBM dropped almost 8% after its second-quarter results fell flat with investors, hampered by disappointing sales in its core software division. Honeywell fell 6.2% despite topping Wall Street's expectations and raising its annual outlook. The S&P 500 crept up 0.07% to end the session at 6,363.35 points. The Nasdaq gained 0.18% to 21,057.96 points, while the Dow Jones Industrial Average declined 0.70% to 44,693.91 points. Volume on US exchanges was relatively heavy, with 19.9 billion shares traded, compared to an average of 17.8 billion shares over the previous 20 sessions. Eight of the 11 S&P 500 sector indices declined, led lower by consumer discretionary, down 1.23%, followed by a 0.75% loss in materials. American Airlines tumbled nearly 10% after the carrier forecast a big third-quarter loss, hurt by sluggish domestic travel demand. US President Donald Trump's global trade war has created the biggest uncertainty for the airline industry since the Covid-19 pandemic. Markets were also monitoring Trump's planned visit to the Federal Reserve's headquarters on Thursday, following months of the president criticising Fed chair Jerome Powell for interest rates that Trump views as too high. With the Fed widely expected to hold rates steady at next week's meeting, traders see a 60% chance of a September rate cut, according to CME's FedWatch tool. A US Labor Department report showed jobless claims last week fell to 217,000 – well below estimates – signaling continued resilience in the job market. US business activity gained momentum in July, but companies hiked prices on goods and services, fueling economists' predictions of faster inflation in the months ahead, largely driven by rising import tariffs. Declining stocks outnumbered rising ones within the S&P 500 by a 1.3-to-one ratio. The S&P 500 posted 46 new highs and 6 new lows; the Nasdaq recorded 81 new highs and 44 new lows. — Reuters


The Star
an hour ago
- The Star
In earnings season, it's AI good, everything else, not so much
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They, along with automakers and giants like Coca-Cola, have indicated that some segments of the buying public have pulled in their spending as prices and interest rates remain high. The dichotomy is evident in IBM's results. Sales in Big Blue's "AI book of business" grew 25 percent in its most recent quarter to $7.5 billion, while its software segment fell short of expectations and the company sounded cautious about how much its consulting segment might grow this year. The equity market has accentuated the positive. News that the U.S. had struck a trade deal with Japan and was closing in on a deal with the European Union ahead of an Aug 1. deadline boosted broad S&P 500 notched another record this week and the Eurostoxx was just a few points shy of that mark. "The market is getting friendly with a view that tariffs ending up higher than they have ever been for 100 years will not have a negative impact on economic growth, because we haven't seen any negative impact on economic growth so far," said Van Luu, head of solutions strategy, fixed income and foreign exchange at Russell Investments. Whether companies continue to absorb that hit remains to be seen. So far, companies have reported over July 16-22 a combined full-year loss of as much as $7.8 billion, with automotive, aerospace and pharmaceutical sectors hurt the most by tariffs, according to a Reuters tariff tracker. U.S. averages have been buoyed by the so-called Magnificent Seven, a group of tech giants that has benefited heavily from spending plans on artificial intelligence, and currently accounts for more than 30% of the value of the S&P. "AI is one of the strongest areas of growth for the economy, and the market mirrors the economy," said Adam Sarhan, chief executive of 50 Park Investments. To be sure, the market's reaction may be in part because a larger-than-normal percentage of companies are clearing a lowered bar for estimates. At the beginning of April, the market expected 10.2% year-over-year S&P earnings growth, but by July, that number had dropped to 5.8%, according to LSEG data. With about 30% of constituents reporting results, the blended earnings growth rate sits at 7.7%. TECH GOES FULL SPEED AHEAD AI-focused businesses continued to print money in the most recent quarter. Nvidia supplier SK Hynix posted record quarterly profit, boosted by demand for artificial intelligence chips and customers stockpiling ahead of potential U.S. tariffs. Indian IT services provider Infosys raised the floor of its annual revenue forecast range to 1% to 3%, from flat to 3%, matching analyst expectations. "The tech community is going ahead full speed ahead... and banks are in a very strong position now," said Bill George, former chairman and CEO of Medtronic and executive education fellow at Harvard Business School. "Other companies will struggle to get growth." UNCERTAIN CONSUMER Consumer companies have been less upbeat. Nestle, the world's biggest packaged food maker, reported softer demand as it struggled to win thrifty shoppers to its big brands. U.S. airlines Southwest and American Airlines warned that Americans are travelling less, the latest signal that U.S. consumers are remaining cautious about their spending. Toymakers Mattel and Hasbro both said uncertainties around tariffs are acting as a headwind. Carmakers are among firms dealing with the most difficulty. The auto giants are resisting raising prices, eating the cost of tariffs that may cost them millions or billions of dollars. Levies on metals, copper and auto parts made it harder to navigate changing tariff policies. South Korea's Hyundai Motor on Thursday posted a 16% decline in second-quarter operating profit, saying U.S. tariffs cost it 828 billion won ($606.5 million) in the second quarter, with a bigger hit expected in the current quarter. General Motors still expects a $4 billion to $5 billion hit to its bottom line this year. On Wednesday, Tesla Chief Executive Elon Musk said U.S. government cuts in support for electric vehicle makers could lead to a "few rough quarters", as his firm reported its worst quarterly sales decline in over a decade. ($1 = 1,365 won) (Reporting by Reuters Newsroom; additional reporting by Nikhil Sharma, Naomi Rovnik; Writing by Anne Marie Roantree, Josephine Mason and David Gaffen; Editing by Nick Zieminski)