Stocks to Watch (2 July 2026): US Macro Data & the Semiconductor Supercycle - M+ Global's View
The local market is expected to keep its constructive tone today, supported by AI and semiconductor structural themes that remain firmly in place on Bursa Malaysia. Global investors, however, have their eyes on one thing tonight: a string of US macroeconomic data due for release, including non-farm payrolls, initial jobless claims, and the unemployment rate. These readings could set the direction of Federal Reserve (Fed) interest-rate policy for the months ahead.
This article summarises the M+ Global Market Update dated 2 July 2026, themed "Focusing On The Macroeconomic Data Tonight". Please note: all market views and the "stocks to watch" list below are the analysis and opinion of M+ Global, not a buy or sell recommendation from mahersaham.com. We share this summary purely as market reference and educational material.
Disclaimer: The information in this article is not investment advice. It is a summary of a third party's views (M+ Global) for educational purposes. Any buy or sell decision is your own responsibility. Please do your own research or consult a licensed financial adviser before investing.
Background: Why Tonight's US Macro Data Is the Focus
Through this week, several US economic indicators have painted a mixed picture. June's ADP employment data and the ISM Manufacturing PMI both came in weaker than expected. Under normal circumstances, these softer readings act as "inflation relief" - they signal a cooling economy, which can open room for the Fed to ease its interest-rate stance.
Yet the message from the Fed itself remains cautious. At a recent European Central Bank (ECB) forum, the Fed Chair stressed that inflation is still "too high". It is precisely this contradiction between cooling data and firm rhetoric that leaves investors hesitant. Until there is clarity on the direction of interest rates, many prefer to wait for confirmation from more comprehensive data - namely tonight's full employment report.
The non-farm payrolls data released by the US Bureau of Labor Statistics is among the most closely watched indicators in the world. A reading that is too strong can reinforce the "inflation is still hot" argument, while one that is too weak can trigger concerns of an economic slowdown. Both scenarios carry different implications for risk assets, including equities.
Wall Street Outlook: Trading Cautiously Ahead of Jobs Data
Given this uncertainty, M+ Global expects Wall Street to trade cautiously while awaiting tonight's economic data. Markets generally dislike uncertainty, and until the employment picture becomes clear, sustained one-way momentum is hard to build.
Beneath that cautious tone, a few specific developments stand out. M+ Global likes the pullback in Micron (MU) toward its 20-day exponential moving average (EMA20). Fundamentally, Micron is anchored by earnings that outperformed expectations, together with newly signed multi-year Strategic Customer Agreements that secure memory and storage supplies. Such agreements matter because they lock in demand in an environment where AI-driven demand is booming. We touched on Micron's momentum in Stocks to Watch 25 June 2026.
Another index development worth noting: Alphabet (Google's parent company) is set to be included in the Dow Jones Industrial Average (DJIA), replacing Verizon. Inclusion in a marquee index like the DJIA typically draws inflows from index funds, and it also marks the old index's continued shift toward growth-oriented technology companies.
Bursa Malaysia Outlook: A Weaker Ringgit & the Semiconductor Supercycle
For Bursa Malaysia, M+ Global expects sentiment to remain highly constructive for semiconductor counters. Two main drivers are cited: a weaker Ringgit environment and the ongoing semiconductor and AI supercycle. A weaker Ringgit generally benefits technology exporters because much of their revenue is in US dollars, while operating costs remain in Ringgit. You can read more on this effect in Ringgit Falling - What It Means for Bursa Malaysia Investors.
In M+ Global's view, counters that could benefit from this theme include FRONTKN, INARI, and THMY. Malaysia's semiconductor theme is not a new story - it is part of a structural cycle we discussed in 2026 Economic Outlook: Why Malaysia's Technology & Semiconductor Sector Is Set to Bite Again.
On the energy and AI infrastructure side, M+ Global views the strong-volume breakout in YTLPOWR as validation of the strength of the domestic AI theme. This theme is supported by YTL's Green Data Centre Park in Johor, YTL AI Labs, and the ILMU project. Data centre development in Malaysia is one of the largest structural drivers of the local market - we unpack it in RM185 Billion Into Malaysia - Who Wins From the Data Centre Boom?
A few additional catalysts are also mentioned. The official opening of the Vertiv plant in Johor and South Korea's USD1.2 trillion AI supply pledge are seen as supportive of the broader technology ecosystem. In addition, M+ Global suggests investors monitor 99SMART following recent share accumulation by the Employees Provident Fund (EPF). Moves by large institutions like the EPF often serve as confidence signals - you can better understand the role of these funds through the report on EPF investment income.
The Full "Stocks To Watch" List (M+ Global's View)
Beyond the themes above, M+ Global lists several stocks to watch across various sectors on Bursa Malaysia. Again, these are M+ Global's views, shared for reference only. Stocks marked with an asterisk (*) in M+ Global's original note indicate particular emphasis:
| Sector | Stocks to Watch (M+ Global) |
|---|---|
| Technology | 3REN*, CORAZA, ICENTS, QES, SKYECHIP* |
| Utility | YTL, YTLPOWR* |
| Solar | SLVEST* |
| Consumer | ECOSHOP* |
| Construction | CHEEDING |
The list shows M+ Global placing heavy focus on the technology supply chain (semiconductors, packaging, testing) alongside energy and solar sectors that support data centre electricity demand. There are also consumer and construction picks as complements. Investors can use this list as a starting point for their own research, not as an automatic buy signal. You can also track institutional fund flows through foreign fund flow data to read the market's direction.
What Can Investors Do in This Situation?
In a market driven by economic data such as tonight's US jobs report, a few basic principles always apply:
- Understand the source of the views. The stocks to watch above come from M+ Global. Before acting, check the charts, financial statements, and Shariah status (if relevant) of each stock yourself.
- Be careful with data reactions. Jobs data can surprise the market in either direction. A single reading does not determine a long-term trend, so avoid rushed decisions based on one headline or one number.
- Manage risk. Sentiment-driven themes such as the semiconductor supercycle or AI counter breakouts do not guarantee profit; they are just one view at one point in time. Do not chase stocks without a clear plan to enter and exit.
For investors who are just starting to trade Bursa and overseas stocks, you can refer to our guide on how to buy Bursa Malaysia shares using the Mplus Global app.
Frequently Asked Questions (FAQ)
1. Are the stocks in this article recommendations from mahersaham.com?
No. All market views and the "stocks to watch" list in this article are M+ Global's analysis. Mahersaham.com only summarises and explains those views for educational purposes, not as a buy or sell recommendation.
2. What is non-farm payrolls data and why does it matter?
Non-farm payrolls (NFP) is a monthly report measuring the number of new jobs in the US outside the agriculture sector. It is a key gauge of US economic health and often influences investor expectations of Fed interest-rate policy, which in turn moves equity, bond, and currency markets worldwide.
3. Why is a weaker Ringgit said to benefit semiconductor stocks?
Most Malaysian semiconductor companies are exporters that earn revenue in US dollars, while their operating costs are largely in Ringgit. When the Ringgit weakens against the dollar, revenue converted back into Ringgit becomes higher, which can improve profit margins.
4. What is the link between data centre projects and utility and solar stocks?
Data centres require large, stable electricity supply. This creates structural demand for utility companies (power generators) and solar energy firms that supply renewable power, making these sectors closely tied to the AI growth theme.
5. Are all the stocks in this list Shariah-compliant?
Not necessarily. Shariah status varies by counter and can change with the Securities Commission's periodic reviews. Please check each stock's latest Shariah status on the Securities Commission's official website before investing if this matters to you.
6. Where can I get M+ Global's market views daily?
We publish daily summaries like this periodically on the mahersaham.com blog. You can read earlier editions such as Stocks to Watch 30 June 2026 to follow how market themes develop from day to day.
Conclusion
In short, the M+ Global Market Update for 2 July 2026 places tonight's string of US macroeconomic data - particularly non-farm payrolls, jobless claims, and the unemployment rate - as the short-term sentiment driver, with Wall Street expected to trade cautiously. On Bursa Malaysia, structural themes such as the semiconductor supercycle, AI data centre networks, and a weaker Ringgit continue to support technology, utility, and solar counters. Nonetheless, reactions to data can shift quickly, so risk management remains the priority.
If you want to follow market themes like these and start building your own portfolio, the first step is to own a trading account that lets you access the markets.
You can open a CDS account to start investing, not only on Bursa Malaysia but also gaining access to overseas stocks such as the US and Hong Kong markets.
For those just getting started, grab our free stock market basics ebook as a step-by-step guide to understanding the market.
Further Reading
- Stocks to Watch 30 June 2026: Spotlight on Doha Talks & Liftech IPO Debut
- 2026 Economic Outlook: Why Malaysia's Technology & Semiconductor Sector Is Set to Bite Again
- RM185 Billion Into Malaysia - Who Wins From the Data Centre Boom?
- Ringgit Falling - What It Means for Bursa Malaysia Investors
- Foreign Fund Flow: How to Read Foreign Fund Flow Data to Predict Bursa's Direction