A Heavy Week for Indonesia: Data Storms from China and the US Loom
The Composite Stock Price Index (IHSG) remained volatile in yesterday’s trading amid the dominance of global sentiment. The re-escalation of conflict in the Middle East, the International Monetary Fund’s (IMF) warning regarding rising global economic risks, and the prospect of higher interest rates persisting for longer continue to be a focus for market participants.
United States stock markets on Wall Street closed higher in the last trading session of the week. The S&P 500 index ended the day with a gain of 0.42% at 7,575.39, while the tech-heavy Nasdaq Composite climbed 0.29% to close at 26,281.61. The Dow Jones Industrial Average, comprising 30 stocks, rose 149.60 points, or 0.29%, to close at 52,637.01.
Nvidia supported the upward movement of the S&P 500, with a gain of around 4%. Meta Platforms was another bright spot in the technology sector, with its shares surging about 6%. With a gain of nearly 15% last week, Meta recorded its best weekly performance since early 2024. This occurred after Bank of America maintained its buy rating for the stock and stated that an internal memo reviewed by Reuters indicated Meta could potentially improve its artificial intelligence cost structure.
The S&P 500 recorded a gain of more than 1% last week. The Nasdaq also ended the period higher, recording a gain of more than 1%. Conversely, the Dow fell 0.5% last week.
South Korean chipmaker SK Hynix debuted on the US stock exchange on Friday, opening at $170 on the Nasdaq and last trading up about 13%. The company’s American Depository Receipts (ADR) price, which has soared this year due to high memory demand, was set at $149 each. Some traders worried that the new offering might compete for investor funds with US memory stocks like Micron Technology.
Ahead of Friday’s debut, South Korean stocks led gains in Asia-Pacific equity markets. The Kospi added 2.5% on Friday, while Japan’s Nikkei 225 closed 1.2% higher. The CSI 300 index in mainland China closed down 1.96%, dragged by the technology and industrial sectors. Elsewhere, the pan-European Stoxx 600 index closed just above the flat line.
Although chip stocks have faced some pressure recently, they have experienced a massive surge throughout this year. In 2026, Micron has soared more than 200%. Lam Research, Marvell Technology, and Intel have all more than doubled since the start of the year (year to date).
“There has been so much euphoria around the AI boom stretching back to the summer of 2023,” said Eric Parnell, chief market strategist at Great Valley Advisor Group. “We are clearly in a boom phase right now, but I have real concerns about a potential downturn in the second half of this year,” he added.
This movement came after US stocks strengthened on Thursday, helped by cooling oil prices after President Donald Trump said that Iran had called to make a deal. Qatar and Pakistan are trying to bring Washington and Tehran back to the negotiating table, officials from those countries told MS Now. A government official said both sides would continue technical talks even after airstrikes from both parties, MS Now reported on Thursday, adding that the US is committed to finding a solution to the Middle East conflict. Trump had stated earlier last week that the ceasefire between the US and Iran had ended.
It has been a good year so far for Bank of America’s diversified portfolio called 25/25/25/25, strategist Michael Hartnett said in a note on Thursday. The portfolio, consisting of equal parts US stocks, bonds, commodities, and cash, has an annual return of 16% since the start of the year, the best since 2021, he wrote. “Asset allocation diversification wins despite equity concentration; we are investing through long-term inflection points in commodities, emerging markets (EM), small-cap stocks, and (upcoming) consumer stocks,” Hartnett told CNBC International.
Entering this week’s trading, global and domestic market participants will focus their attention on a series of essential macroeconomic data releases. These data are projected to provide further indications regarding the direction of monetary policy from major central banks, the effectiveness of economic recovery measures, and the impact of the escalating geopolitical conflict in the Middle East on global commodity price stability.
Indicators to be released include trade performance, consumer and producer inflation, economic growth, and external debt positions. The following is a detailed schedule of economic data releases that market participants need to monitor this week.
War Developments
United States (US) and Iranian forces exchanged missile and drone attacks again on Sunday. Iran attacked US military facilities in several Gulf countries while simultaneously announcing the re-closure of the Strait of Hormuz, a waterway through which about 20% of the world’s oil and LNG trade passed before the war. Iranian attacks extended to Qatar and the United Arab Emirates (UAE), while the US retaliated with new strikes against Iranian military targets. US President Donald Trump said the military operations were successful. “We are pounding them,” he told Reuters.
Iranian media reported explosions in Bandar Abbas and Qeshm Island. Meanwhile, CENTCOM stated it had struck more than 300 Iranian military targets in the last three days to weaken Tehran’s ability to attack commercial ships in the Strait of Hormuz. Iran’s blockade of the Strait of Hormuz continues to trigger spikes in energy prices and heightens global inflation concerns. The tensions also threaten the stability of supply chains.