Daily Market Report (25 July 2024)
- Wall Street finished sharply lower following a weak start to the megacap earnings season, leading to concerns that the artificial intelligence enthusiasm driving the bull market may be overhyped.
- The DJIA closed over 500 points lower, while the S&P 500 saw its worst day since December 2022 due to a major tech selloff, ending its best run without a 2% drop since the onset of the global financial crisis.
- The Nasdaq 100 experienced even more significant losses, declining by over 3.5%.
- In Hong Kong, stocks reached their lowest point in three months due to increasing concerns that corporate earnings may not meet expectations.
- The Hang Seng Index dropped 0.9% to close at 17,311.05, the lowest level since April.
- In the domestic market, the FBM KLCI fell in tandem with the regional sell-off.
- Nonetheless, we view this as a chance for investors to find bargains in lower-priced stocks.
- The index has maintained its position above all Exponential Moving Averages (EMA), indicating an increasing potential for upward movement for longer term.
- Consequently, we predict the benchmark index will range between 1,610 and 1,625 today.
