Stock Market Review: The First Half of 2026 — Record Highs in the USA Fuelled by the AI Boom and a Sleepy Bursa

As the first half of 2026 closes, the headline for global markets is simple: it was a blockbuster. The S&P 500 finished H1 up around 9.6% and the tech-heavy Nasdaq more than 12% — Wall Street's best first half since 2021. But the six months were anything but calm, and one market notably sat the party out: Bursa Malaysia. Here's the H1 2026 scorecard, and what it means for your money.

Wall Street's blockbuster first half

The engine was the AI and semiconductor boom. The S&P 500 pushed above 7,600 for the first time in early June as the chip trade ran hot, and the second quarter turned into the strongest three months for US stocks since 2020. Money piled into anything tied to AI compute and, increasingly, AI memory — the quiet bottleneck we unpacked in the Micron & SanDisk story.

The late-June wobble

It didn't end in a straight line. In early-to-mid June the AI trade cracked — the Nasdaq fell 4% on 4 June, its worst day in over a year — as valuations stretched and hawkish signals from the US Federal Reserve revived rate worries. Geopolitics added noise: a US–Iran flare-up rattled oil and risk appetite through the quarter. Even gold, a star performer for much of the half, cooled toward month-end after a strong run. We covered the equity side of this in the AI selloff piece.

Meanwhile, Bursa sat it out

For Malaysian investors, the most striking thing about H1 2026 is what didn't happen at home. The FBM KLCI ended June near 1,664 — broadly flat-to-lower on the half — drifting on thin domestic catalysts while Wall Street set records.

Why the gap? Bursa's index is heavy on banks, utilities and plantations and light on the mega-cap technology that drove the global rally; foreign flows were cautious; and lingering election (GE16) uncertainty kept some money on the sidelines. The bright spot was the semiconductor supply chain— the Penang “pick-and-shovel” names riding the same AI-memory boom. The takeaway writes itself: in H1 2026, a globally diversified portfolio comfortably beat a home-only one.

Gold and the ringgit

Gold was one of the half's quiet winners — a classic safe haven amid the geopolitical noise — trading around RM16,400 an ounce in late June before easing about 5% in the final week. You can track it on the live gold-price page. The ringgit, meanwhile, had a stretch of strength before giving some back — which quietly flatters the MYR value of the overseas gains and gold you already hold (more in the ringgit explainer).

What it means for a Malaysian investor going into H2

• Global exposure paid off. If your money sat only in Bursa, you largely missed the rally — a semiconductor ETF, a unit trust or an EPF external fund would have captured far more of it.
• Don't chase the top. After a ~10% half, US indices are priced for near-perfection. The late-June wobble is a warning, not background noise.
• Respect the cycle.The AI and chip trade powered H1 and it is deeply cyclical — size positions so a pullback doesn't hurt.
• Keep a safe-haven sleeve. Gold did its job in the first half; a small allocation smooths the ride when equities wobble.
• Know your real exposure. Add up the AI and US-tech weighting hiding inside your ETFs, unit trusts and EPF funds — concentration sneaks up on you.

The bottom line

H1 2026 rewarded investors who looked beyond Bursa — but it ended on a jittery note that sets up a more two-sided second half. The steady rules still win: diversify globally, respect the cycle, and keep some dry powder. See where the money is moving right now on today's trending US and Bursa stocks.

Sources & further reading

• CNBC — Wall Street closes out its best first half in five years
• Yahoo Finance — S&P 500, Dow and Nasdaq best first half since 2021
• KLSE Screener — Bursa Malaysia ends the half on a softer note
• Live Price of Gold — gold price in Malaysian ringgit