Jakarta. Indonesia Stock Exchange (IDX) saw its market capitalization fall by 2.23 percent this past week, dropping to Rp12,601 trillion from Rp12,888 trillion as of Nov. 1. The Jakarta Composite Index (JCI) also decreased by 2.46 percent, closing at 7,505.257, driven by global market turbulence and disappointing earnings from major tech companies Microsoft and Meta.

Analysts noted that the US presidential election on Nov. 5 has contributed to investor caution. "Investor sentiment was dampened not only by weak outlooks from major tech firms but also by key economic data, such as the PCE price index, which the Federal Reserve closely monitors as an inflation gauge,” NH Korindo Sekuritas stated in its November 1 report. The report highlighted a year-over-year slowdown in the index’s increase to 2.1 percent in September.

Additional data showed core PCE inflation rising by 2.7 percent, slightly above expectations. Initial jobless claims fell to 216,000 from 228,000, and personal spending rose by 0.5 percent in September, signaling a resilient US economy despite ongoing inflation pressures. 

These indicators have fueled speculation that the Fed will implement another 25 basis point rate cut in its November 17-18 meeting. However, there is also a possibility the Fed may pause rate cuts at its December 2024 meeting. 

The IDX's average daily transaction value also declined by 5.4 percent to Rp11.31 trillion, down from Rp11.96 trillion the previous week. Foreign investors recorded a net sell of Rp114.90 billion, though they maintain a net buy of Rp38.254 trillion year-to-date.

Meanwhile, Wall Street saw a slight recovery, with the S&P 500, Dow Jones, and Nasdaq all posting gains after a sharp drop the previous day.