Why the Jakarta Composite Defied Wall Street's Sell-Off to Open Higher

JAKARTA, Investortrust.id — The Jakarta Composite Index (IHSG) kicked off Thursday trading on a surprisingly resilient note, climbing 18.18 points or 0.28% to open at 6,455.03 on Sept. 17, 2026.

The morning gain defied an overnight rout across global bourses sparked by the Federal Reserve's latest monetary tightening. At the opening bell, advancing shares led decliners by 171 to 120, while 343 counters held flat.

Emerging equity bourses typically retreat when the Fed hikes rates and pushes US Treasury yields higher. A higher open demonstrates pockets of domestic resilience and selective stock rotation, even as foreign institutional capital continues to pull back from risk-sensitive regional assets.

Fed Decision Triggers Wall Street Slump

The early morning bounce on the Indonesia Stock Exchange (BEI) stood in sharp contrast to Wall Street's performance. US equity benchmarks stumbled overnight after the Fed raised the Fed Funds Rate by 25 basis points to 3.75%–4.00% in a unanimous vote.

The Dow Jones Industrial Average slid 631.21 points, or 1.21%, to 51,461.90. The S&P 500 slipped 0.45%, while the tech-heavy Nasdaq Composite edged down 0.01%.

Sentiment soured after Fed Chair Kevin Warsh signaled that inflation remains far too sticky, pushing the 10-year US Treasury yield back above the psychologically vital 5% threshold. Most central bank officials penciled in at least one more rate hike before the close of 2026.

Gold Weakens as Dollar Firms

The gravitational pull of higher US interest rates quickly rippled across global safe-haven commodities. Spot gold prices retreated 1.2% to trade near $4,240.10 per ounce on Wednesday afternoon, pulling back from an intraday high of $4,365.57 per ounce.

The bullion slide reflected a strengthening US dollar and rising yields on sovereign debt, which increased the opportunity cost of holding non-yielding precious metals. Tai Wong, an independent metals trader, noted that Warsh's commentary was interpreted as aggressive and will likely support the dollar while keeping precious metals under short-term downward pressure.

Crypto Markets Absorb Severe Liquidations

Digital assets also faced intense turbulence surrounding the monetary decision and ongoing legislative hurdles. Over $455 million in leveraged crypto positions were wiped out in the 24 hours preceding the policy statement, aggravated by the US Senate's failure to pass the CLARITY Act.

Despite the headwinds and net outflows from spot exchange-traded funds, major tokens showed unexpected stability following the initial shock. Bitcoin managed to hold near the $76,000 mark after briefly dipping below $75,000, while Ethereum hovered around $2,400 and XRP stabilized near $1.28.

Technical Risks Loom Over Jakarta

Despite Thursday's firmer opening print, technical strategists urge caution across the domestic equity market. BRI Danareksa Sekuritas noted that the local benchmark index remains under broader structural pressure after closing down 24.30 points, or 0.38%, at 6,436 on Wednesday.

The brokerage pointed out that the IHSG remains vulnerable after breaking down below the 20-day moving average at 6,548 and exiting a rising wedge pattern, with a MACD bearish crossover indicating negative momentum is dominant. Unless the index manages to reclaim 6,585, it faces the risk of sliding to test primary support at 6,390, followed by secondary support at 6,220.

Selective Rotation into Domestic Equities Foreign investors dumped Rp 624.72 billion ($39.29 million) in local equities on Wednesday, led by heavy net sales in Bank Mandiri (BMRI), Bumi Resources (BUMI), and Bank Central Asia (BBCA). However, analysts highlighted selective buying opportunities in individual resource and industrial counters capable of outperforming the macro cycle.

State-backed brokerage BRI Danareksa issued buy recommendations for nickel producer PT Vale Indonesia Tbk (INCO) with a price target of Rp 4,930 to Rp 5,000 per share, mineral miner PT Bumi Resources Minerals Tbk (BRMS) targeting Rp 750 to Rp 790, and ethanol maker PT Indo Acidatama Tbk (SRSN) targeting Rp 4,050 to Rp 4,350.

Market participants continue to monitor the rupiah's exchange rate, foreign capital flows, and the upcoming policy moves of newly installed Finance Minister Suahasil Nazara as external risks reverberate across regional trading desks.