Supreme Court Strikes Down Global Tariffs; Markets Rally as Uncertainty Lifts

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🇺🇸 U.S. Stocks – Weekly Wrap

Market Overview

For the week ended 20 Feb 2026, U.S. equities finished the holiday-shortened week higher, capped by a powerful Friday rally after the U.S. Supreme Court struck down the administration’s sweeping global tariffs imposed under IEEPA authority. Earlier in the week, rising tensions between the U.S. and Iran pushed oil prices higher and kept volatility elevated.

The Nasdaq Composite (COMP) led gains, rising 1.51% and snapping its recent losing streak. The S&P 500 (SPX) advanced 1.07%, while the Dow Jones Industrial Average (DJI) lagged but still added 0.25% as prior “old economy” leaders consolidated earlier gains. On Friday alone, the S&P 500 climbed about 0.7% to close near 6,910 as investors welcomed the removal of a major policy overhang.

Despite mixed economic data and firmer inflation readings, the resolution of tariff uncertainty provided a timely catalyst, helping markets look past recent volatility tied to AI disruption fears and moderating growth signals.

(Refer to the major indices’ weekly performance tables below.)

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Major Indices – Weekly Performance

• Nasdaq Composite: +1.51% – strongest gainer, led by a rebound in technology.
• S&P 500: +1.07% – moved back toward recent highs.
• Dow Jones: +0.25% – lagged as industrials and value stocks digested earlier strength.

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Key Highlights for the Week and Outlook

1️⃣ Supreme Court overturns global IEEPA tariffs

On 20 Feb, the Supreme Court ruled 6–3 that the administration exceeded its authority in imposing sweeping global tariffs under the International Emergency Economic Powers Act (IEEPA). The ruling removes a significant legal and policy overhang that had contributed to market volatility for more than a year.

Tariff revenues collected under the IEEPA framework are estimated at roughly USD 175 billion — around 0.6% of U.S. GDP. While the macro impact is limited, sector-level implications and corporate margin effects had weighed heavily on sentiment.

2️⃣ Administration responds with temporary tariffs

In response, the White House invoked Section 122 of the Trade Act of 1974, initially imposing a 10% global tariff for up to 150 days. Within 24 hours, this was raised to 15% — the maximum allowed under Section 122 — signalling an effort to maintain trade pressure while longer-term investigations under Sections 301 and 232 proceed.

Markets ultimately focused on the temporary and capped nature of these measures, which helped risk assets stabilise.

3️⃣ Fed minutes show division; inflation remains sticky

January FOMC minutes revealed a divided committee. Some policymakers remain open to rate cuts later in 2026 if inflation cools further, while others highlighted upside risks from tight labour conditions and persistent services inflation.

Core PCE readings around 0.3–0.4% month-on-month and roughly 3.0% year-on-year reinforce the Fed’s cautious stance. Headline PCE near 2.9% suggests easing is more likely around mid-year at the earliest.

4️⃣ Growth slows but remains consistent with soft landing

Q4 2025 real GDP slowed to the low-1% annualised range after a strong 4–5% pace in Q3. The deceleration reflected softer consumer spending, weaker exports, and slower government outlays.

However, forward-looking surveys remain in expansion territory, and corporate guidance broadly supports continued double-digit earnings growth in 2026. Current data align more with a soft landing than a sharp downturn.

5️⃣ Housing mixed; business confidence stabilises

Housing indicators were mixed. Builder sentiment and pending sales softened, while housing starts and permits surprised to the upside. Broader business confidence has stabilised, with improved clarity around tariffs and rates supporting capital expenditure plans.

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S&P 500 Sectors in Focus

Seven of 11 sectors finished higher as the tariff ruling triggered a broad-based relief rally.

Outperformers:
• Communication Services (XLC) – strength in internet platforms and select AI-linked names.
• Industrials (XLI) – benefited from reduced trade war risk and solid manufacturing data.
• Financials (XLF) – supported by a slightly steeper yield curve and improved macro visibility.

Laggards:
• Consumer Staples (XLP) – underperformed as investors rotated out of defensives.
• Materials (XLB) – saw profit-taking in commodity-linked names.
• Health Care (XLV) – mixed performance amid stock-specific developments.

(Refer to the SPX sector ETF weekly performance table below.)

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Technical Snapshot – Major U.S. Indices

• S&P 500 (SPX): Rebounded toward the top of its recent trading range, closing near 6,910 and not far from all-time highs. Friday’s strong move reinforces near-term support.

• Nasdaq Composite (COMP): Reclaimed key short-term moving averages but remains below early-year peaks as investors remain selective in high-multiple tech and AI names.

• Dow Jones (DJI): Consolidating just below 50,000 after reclaiming that psychological level, as value and industrial stocks digest prior gains.

📊 Weekly charts:
• DJI weekly chart
• SPX weekly chart
• Nasdaq weekly chart

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🇨🇳 China / 🇭🇰 Hong Kong Markets

Market Overview

Mainland markets were closed for Chinese New Year holidays beginning 16 February and will reopen on 24 February. Hong Kong operated a half-day session before closing for the holiday and resumed trading on Friday, with the Hang Seng Index slipping 0.58% in thin trade.

• CSI 300:  (holiday closure)
• Shanghai Composite:  (holiday closure)
• Hang Seng Index: −0.58%

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Key Highlights – China & Hong Kong

1️⃣ IMF: Shift toward consumption essential

The IMF projects China’s economy to grow around 4.5% in 2026, below the 5% pace in 2025. It emphasised the need to transition from investment- and export-driven growth toward a more consumption-led model, supported by stronger domestic demand and structural reforms.

2️⃣ Telecom VAT increase

China raised VAT on telecommunications services from 6% to 9%, potentially weighing on major operators’ margins unless offset by pricing or cost adjustments.

3️⃣ U.S. military-linked list confusion

U.S. authorities briefly added major Chinese firms to a military-linked entity list before retracting the update. Adding names such as Alibaba Group, BYD, Baidu and TP Link Technologies before withdrawing the additions minutes later without a clear explanation. Alibaba and Baidu publicly rejected the designation and stressed that they are commercial, not military, companies. While largely symbolic, the episode highlights persistent geopolitical friction and headline risk for China-linked equities.

(Refer to the Hang Seng Index constituents’ weekly performance table below.)

📊 Weekly charts:

• SSE weekly chart
• HSI weekly chart

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🇸🇬 Singapore Market – Weekly Wrap

Market Overview

The Straits Times Index (STI) extended its winning streak to nine consecutive weeks, gaining about 1.6% and closing firmly above the psychological 5,000 level. Sustained buying in banks and blue-chip industrials continues to underpin momentum.

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Market Leaders

Outperformers:
• YZJ Shipbuilding (BS6): +8.75% – strong rebound on robust order books.
• Genting Singapore (G13): +5.19% – supported by resilient tourism and gaming demand.
• OCBC (O39): +2.89% – strong capital ratios and dividend appeal.

Banks:
• DBS (D05): +1.63%-– recovered part of the prior week’s pullback and remained a key driver of index levels.

• UOB (U11): +0.34%-posted a modest gain, reflecting steady earnings and asset‑quality trends.

• OCBC (O39): +2.89%– outperformed its local peers on the week, contributing significantly to the STI’s move above 5,000.

(Refer to the STI weekly performance table below.)

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Technical Snapshot – STI

The STI remains in a strong primary uptrend, firmly above 5,000 after nine straight weekly advances. Short-term indicators are overbought, suggesting risk of consolidation. However, pullbacks toward breakout levels are likely to attract buyers focused on quality banks, industrials, and defensive yield plays.

📊 Weekly chart:
• STI weekly chart

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Source: Some content and data are excerpted from publicly available market reports. Please comment to claim copyright ownership of any material, and it will be removed if necessary.

Stocks Decline Amid AI Disruption Concerns

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🇺🇸 U.S. Stocks – Weekly Wrap

Market Overview
For the week ended 13 Feb 2026, U.S. equities finished lower as concerns around artificial intelligence disruption and heavy tech positioning weighed on sentiment. The technology‑heavy Nasdaq Composite(COMP) fell about 2.1%, marking the weakest performance among the major indexes, while the S&P 500(SPX) and Dow Jones Industrial Average(DJI) declined roughly 1.4% and 1.2% respectively over the five‑day period.

In contrast, value and “old‑economy” segments continued to show relative strength. The Russell 1000 Value Index outperformed its growth counterpart for a seventh consecutive week, extending its year‑to‑date lead to around 11 percentage points, as investors stayed rotated into cyclicals and defensives. The S&P MidCap 400 held up best among the major benchmarks, reinforcing the ongoing broadening of market leadership beyond mega‑cap tech. This week’s price action still points to rotation and repricing rather than a material deterioration in underlying economic fundamentals.​

(Refer to the major indices’ weekly performance tables below.)

Major Indices – Weekly Performance

• Nasdaq Composite: −2.10%
• S&P 500: −1.39%
• Dow Jones: −1.23%
• S&P MidCap 400: −0.66%
• Russell 1000 Value vs Growth: +11.0% YTD outperformance

Leadership continues to tilt toward value, cyclicals and selective mid‑cap exposure.

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Key Highlights for the Week and Outlook

1️⃣ Retail sales stall
Recent retail‑sales data for late 2025 and early 2026 showed flat headline spending and a slight decline in key control‑group components, suggesting consumers are pausing after robust activity through most of 2025. Upcoming tax refunds, real‑wage gains from falling inflation and still‑healthy employment should help support household incomes into 2026, even if the pace of spending normalises.

2️⃣ Labor market surprises to the upside
January payrolls rose by 130k — the strongest monthly gain in over a year. The unemployment rate declined to 4.3%. Private payroll growth also improved when excluding federal job cuts, suggesting early signs of thawing after a weak 2025 hiring environment.

3️⃣ Rate cut expectations pushed back
Stronger‑than‑expected jobs data and still‑resilient activity led markets to scale back the number and timing of Fed rate cuts priced for 2026. Futures now reflect a higher probability that the Fed keeps its policy rate unchanged through mid‑year, reinforcing a shift in narrative from urgency to patience as officials emphasise a data‑dependent approach.

4️⃣ Inflation cools gradually
Headline CPI slowed to 2.4% year-on-year, helped by declining energy prices. Core CPI rose 0.3% month-on-month and remains slightly elevated. Shelter inflation is now showing clearer signs of moderation, which should help bring overall inflation closer to target over time.

5️⃣ AI disruption fears trigger tech repricing
While technology earnings and revenue growth remain solid, investors are reassessing valuations amid aggressive AI‑related capital‑expenditure plans and potential competitive disruption within and across key platforms. Recent weakness in leading AI beneficiaries and high‑multiple software names appears driven more by valuation compression and position unwinds than by any meaningful deterioration in their near‑term earnings outlooks.

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S&P 500 Sectors in Focus

Six of 11 S&P 500 sectors finished higher on the week, with defensive and “old‑economy” pockets outperforming. Utilities (XLU) and Materials (XLB) led gains, while Financials (XLF), Consumer Discretionary (XLY) and Technology (XLK) lagged alongside the broader pullback in growth and rate‑sensitive names.

Outperformers:

• Utilities (XLU) – benefited from defensive inflows as volatility picked up.​
• Materials (XLB) – supported by stabilising commodity prices and global industrial demand.
• Energy (XLE) – helped by firm crude prices and solid cash‑flow generation.

Laggards:

• Financials (XLF) – weighed by shifting rate‑cut expectations and a flatter curve.
• Consumer Discretionary (XLY) – pressured by concerns about slower discretionary spending and higher‑beta exposure.
• Technology (XLK) – underperformed amid AI repricing, valuation compression and profit‑taking in mega‑cap leaders.

(Refer to the SPX sector ETF weekly performance table below.)

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Technical Snapshot – Major U.S. Indices

• S&P 500 (SPX): Remains in an eight‑week consolidation range, with this week’s decline taking prices back toward the lower end of that band near recent support levels.
• Nasdaq Composite (COMP): Came under heavier selling pressure, slipping to its lowest level in roughly 12 weeks as large‑cap tech and AI names corrected.
• Dow Jones Industrial Average (DJI): Extended its prior breakout to new record intraday highs early in the week but subsequently pulled back below the closely watched 50,000 mark as profit‑taking set in.

📊 Weekly charts:

• DJI weekly chart
• SPX weekly chart
• Nasdaq weekly chart

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🇨🇳 China / 🇭🇰 Hong Kong Markets

Market Overview

China A‑shares ended the week modestly higher ahead of Chinese New Year holidays. The Shanghai Composite Index added 0.41%, while the blue‑chip CSI 300 Index rose 0.36%. In Hong Kong, the Hang Seng Index was little changed, eking out a gain of around 0.03% amid light pre‑holiday liquidity.

• CSI 300: +0.36%
• Shanghai Composite (SSE): +0.41%
• Hang Seng Index (HSI): +0.03%

Markets in mainland China will be closed for the CNY holidays from February 16 to February 23, resuming trading on February 24. Hong Kong will trade for a half day on February 16, before closing for the February 17 to February 19 holidays. 

Key Highlights – China & Hong Kong

1️⃣ Consumer inflation eases; producer deflation persists
China’s consumer price inflation moderated in January as the CPI rose 0.2% year‑on‑year, down from 0.8% in December, reflecting base effects from last year’s earlier holiday timing and a sharper drop in energy prices. Producer prices remained in deflation for a 40th consecutive month, with the PPI down 1.4% year‑on‑year, an improvement from a 1.9% decline in December, as global commodity prices firmed and policy efforts to address overcapacity began to gain traction. The backdrop underscores persistent disinflationary pressure in the absence of more forceful stimulus. 

2️⃣  Property market shows tentative stabilisation
Official data indicated early signs of stabilisation in parts of China’s property market, with the pace of price declines in the secondary market slowing. Resale home prices across 70 major cities fell about 0.5% month‑on‑month in January, the smallest drop in eight months, while new‑home prices slipped 0.4% from December, matching the prior month’s pace. Recent targeted easing measures and supportive credit policies appear to be cushioning the downturn but have yet to trigger a clear, broad‑based rebound.

3️⃣ Monetary easing into the holidays
The People’s Bank of China reaffirmed its intention to maintain a “moderately loose” policy stance in 2026 and signalled room for further reserve‑requirement‑ratio and interest‑rate cuts if needed. Ahead of Lunar New Year, the central bank injected additional liquidity into the banking system to meet seasonal cash demand and to ensure smooth functioning of money markets.

4️⃣ Hong Kong stocks rise; AI race intensifies

Hong Kong stocks opened the week firmer as some earlier risk‑off sentiment faded and investors took comfort from signs that producer‑price deflation is easing and construction‑material oversupply pressures are moderating. Mirroring trends in the U.S., competition within China’s AI ecosystem is intensifying, with players such as Zhipu AI and ByteDance reportedly accelerating the rollout of upgraded large‑language models ahead of widely anticipated releases from rivals like DeepSeek, underscoring a fast‑moving, highly competitive landscape.

Selected picks (MSSG):

• Kingdee International Software (268 HK): Navigating the next phase of SaaS adoption and profitability.
• Innovent Biologics (1801 HK): Supported by strategic drug partnerships, including collaborations with Eli Lilly.
• Nio Inc. (9866 HK): Recently achieved its first‑ever quarterly operating profit in 4Q25, helped by scale benefits and new model launches.

(Refer to the Hang Seng Index constituents’ weekly performance table below.)

📊 Weekly charts:

• SSE weekly chart
• HSI weekly chart

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🇸🇬 Singapore Market – Weekly Wrap

Market Overview
The Straits Times Index (STI) extended its winning streak to an eighth straight week, inching up about 0.07% and setting another record close. The index briefly traded above the 5,000 level for the first time on an intraday basis before ending the week at 4,937.78, as a late‑week pullback in heavyweight DBS trimmed gains. 

Market Leaders

Outperformers:

• YZJ Shipbuilding (BS6): +8.54% – rebounded after four weeks of declines, with its primary uptrend intact as order‑book visibility and sector sentiment remained supportive.
• Keppel (BN4): +8.33% – continued to benefit from optimism around energy, infrastructure and data‑centre‑related earnings streams.
• Hongkong Land (HKL / H78): +4.16% – gained on the back of value‑oriented buying and interest in quality commercial property names.

Banks:

• DBS (D05): −3.78% – fell on profit‑taking after a strong run, weighing on the headline index.
• UOB (U11): −0.08% – essentially flat, consolidating recent gains.
• OCBC (O39): −0.57% – drifted modestly lower in line with broader financial‑sector underperformance globally.

(Refer to the STI weekly performance table below.)

Technical Snapshot – STI
The STI remains in a strong primary uptrend, but after eight consecutive weekly advances the index is now short‑term overbought on several momentum measures. A period of pullback or sideways consolidation would be healthy at this stage, with any shallow dips toward prior breakout levels likely to attract buying interest from investors seeking exposure to Singapore’s bank, industrial and value leaders.

📊 Weekly chart:

• STI weekly chart

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Source: Some content and data are excerpted from publicly available market reports. Please comment to claim copyright ownership of any material, and it will be removed if necessary.

U.S. Stocks Rotated to “Old Economy” Stocks from Tech

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🇺🇸 U.S. Stocks – Weekly Wrap

Market Overview
For the week ended 6 Feb 2026, U.S. major indexes closed a volatile week mixed as leadership rotated sharply away from large‑cap technology toward value, cyclicals and smaller‑cap stocks. High‑growth tech names suffered their weakest weekly performance since November, while “old‑economy” sectors extended their year‑to‑date outperformance.

The Nasdaq Composite (COMP) was the weakest major index, while the S&P 500 (SPX) finished little changed on the week. In contrast, the Dow Jones Industrial Average (DJI), S&P MidCap 400 and Russell 2000 (RUT) posted solid gains, with the Russell 1000 Value Index outperforming its growth counterpart by more than 400 basis points and underscoring the strength of the ongoing rotation. Market action points to repricing and sector rotation rather than a deterioration in fundamentals, as investors reassess crowded mega‑cap growth exposure amid rising volatility.​

(Refer to the major indices’ weekly tables below.)

Major Indices – Weekly Performance

• Nasdaq Composite: −1.84%, worst performer amid broad tech sell‑off.
• S&P 500: Flat on the week, consolidating below recent highs.
• Dow Jones: Notched solid gains, supported by value and cyclical names.
• S&P MidCap 400: Registered a strong advance.
• Russell 2000: Extended its run of small‑cap leadership.

Overall, value stocks significantly outpaced growth, reinforcing the shift away from mega‑cap tech dominance.

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Key Highlights for the Week and Outlook

1️⃣ Rotation toward “old economy” sectors accelerates
As tech stocks sold off, investors rotated into traditional sectors such as energy, chemicals, transportation, consumer staples and regional banks, which are benefiting from more attractive valuations and improving earnings momentum. The DJI, a useful proxy for “old‑economy” leadership, crossed the 50,000 level for the first time in history on 6 Feb and closed above that milestone. President Trump publicly highlighted the achievement, framing the new high as a sign of U.S. market strength. Economists have been revising growth estimates higher and now generally expect U.S. GDP to expand by roughly 2.5% in 2026, reflecting a soft‑landing rather than a recession scenario.

2️⃣ Tech reprices, not collapses
Despite recent weakness, technology earnings remain robust, with sector profits still projected to grow at a strong double‑digit pace year‑on‑year in 2026. The recent sell‑off has been driven mainly by valuation compression rather than earnings deterioration, as investors reassess AI‑related disruption risks, lofty expectations and the surge in capital‑expenditure plans across mega‑cap platforms.

3️⃣ Cooling U.S. labor market becomes clearer
A heavy slate of labor data pointed to softer conditions. ADP private payrolls for January came in well below consensus, job openings declined to their lowest level since the early‑pandemic period, initial jobless claims edged higher, and announced layoffs rose versus a year earlier, all signalling a continued cooling in labor demand. The overall message is that the labour market is normalising from very tight levels rather than collapsing outright.

4️⃣ Manufacturing rebounds; services remain steady
U.S. manufacturing activity rebounded into expansion, with the ISM Manufacturing PMI rising to 52.6 in January 2026, its first reading above 50 in a year and the strongest since 2022, driven by a sharp improvement in new orders. At the same time, the ISM Services PMI registered 53.8 in January, unchanged from December, marking its 19th consecutive month in expansion territory and confirming steady momentum in the broader services economy.

5️⃣ Risk appetite cools; speculative assets pull back
Risk appetite softened across more speculative corners of the market. Bitcoin extended its pullback from recent highs, while gold and silver corrected meaningfully after becoming technically overextended, as firmer real yields and the perception that Fed rate cuts may be delayed weighed on non‑yielding and high‑beta assets. The retracement looks more like healthy profit‑taking than a structural shift in long‑term trends at this stage.

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S&P 500 Sectors in Focus

Eight of 11 S&P 500 sectors finished higher on the week, with leadership continuing to broaden beyond technology. Consumer Staples (XLP) and Industrials (XLI) led gains, while Tech (XLK), Consumer Discretionary (XLY) and Communication Services (XLC) — key parts of the growth complex — underperformed.

Outperformers:

• Consumer Staples (XLP) – supported by defensive inflows and resilient earnings.
• Industrials (XLI) – benefited from improving manufacturing data and infrastructure‑related demand.
• Materials (XLB) – helped by signs of an industrial upturn and earlier strength in selected commodities.

Laggards:

• Technology (XLK) – weighed by valuation compression and profit‑taking in AI leaders.
• Consumer Discretionary (XLY) – softened alongside higher‑beta growth names.
• Communication Services (XLC) – dragged down by weakness in internet and media platforms.

This rotation is helping normalise valuations and reduce concentration risk across portfolios. (Refer to the SPX sector ETF weekly performance table below.)

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Technical Snapshot – Major U.S. Indices

• S&P 500 (SPX): Consolidating just below record highs, with the primary uptrend intact despite increased sector churn.
• Nasdaq Composite (COMP): Under pressure in the near term as large‑cap tech digests prior gains, but still holding above key medium‑term support levels.
• Dow Jones Industrial Average (DJI): Extended its breakout to new all‑time highs and traded above the 50,000 mark for the first time, confirming relative strength in value and cyclical leadership.

📊 Weekly charts:

• DJI weekly chart
• SPX weekly chart
• Nasdaq weekly chart

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🇨🇳 China / 🇭🇰 Hong Kong Markets

Market Overview
Mainland A‑shares ended the week lower as volatility in commodity markets and weakness in technology stocks weighed on sentiment. The Shanghai Composite Index slipped 1.27%, while the blue‑chip CSI 300 Index fell 1.33%. In Hong Kong, the Hang Seng Index dropped about 3.0% as regional tech and growth names came under renewed selling pressure.

• CSI 300: −1.33%
• Shanghai Composite (SSE): −1.27%
• Hang Seng Index (HSI): −3.02%

Key Highlights – China & Hong Kong

1️⃣ Private PMI points to improving activity
A private survey compiled by S&P Global signalled a modest pickup in China’s economic activity in January. The RatingDog China General Services PMI rose to 52.3 in January 2026 from 52.0 in December, its highest reading in three months and above market expectations of 51.8, driven by faster growth in new business and a renewed rise in foreign sales. The associated RatingDog China General Manufacturing PMI increased to 50.3 in January from 50.1, marking a second consecutive month in expansion and the highest level since October, as export orders and output improved and hiring reached a three‑month high.

2️⃣ Official data highlight domestic softness
In contrast, official PMI data from China’s statistics bureau remained closer to or slightly below the 50 threshold, pointing to a more subdued domestic backdrop even as export‑oriented private firms show more resilience. This divergence reflects ongoing challenges in reviving household consumption and private investment. Economists surveyed by Bloomberg broadly expect the People’s Bank of China to deliver further monetary easing in 2026 to support activity.

3️⃣ Hong Kong under pressure amid tech sell‑off
Hong Kong equities fell in tandem with the global tech sell‑off, with the Hang Seng Index drifting lower throughout the week. Sentiment stayed cautious: Eastroc Beverage reportedly raised around HKD 10.1 billion in its Hong Kong listing and finished its first trading day roughly flat, suggesting a selective appetite for new issues. In contrast, Baidu outperformed after unveiling a USD 5 billion share‑buyback programme and a new dividend policy, underscoring a stronger focus on shareholder returns. Separately, BYD confirmed plans for a new India‑specific EV model, signalling an aggressive push to deepen overseas sales despite global trade headwinds.

Selected picks (MSSG):

• CK Hutchison (1 HK): Divestments progressing despite Panama‑related headwinds.
• BYD Co. (1211 HK): Subsidy cliff driving a temporary slowdown but long‑term EV growth story intact.
• Galaxy Entertainment (27 HK): Macau January gaming revenue far exceeded expectations, supporting earnings momentum.
• Pop Mart (9992 HK): Shares staging a strong recovery in 2026 on improving consumer and travel‑related demand.

(Refer to the Hang Seng Index constituents’ weekly performance table below.)

📊 Weekly charts:

• SSE weekly chart
• HSI weekly chart

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🇸🇬 Singapore Market – Weekly Wrap

Market Overview
The Straits Times Index (STI) notched another record this week, rising about 0.6% to close around 4,934, continuing its slow‑but‑steady climb higher every week so far this year. The index came within roughly 20 points of the 5,000 mark at its intra‑week high, keeping the psychological milestone firmly in sight.

Market Leaders

Outperformers:

• Keppel Corp (KEP): +6.5% – supported by optimism around energy, infrastructure and data‑centre‑related earnings.
• Singapore Airlines (SIA): +5.5% – buoyed by resilient travel demand and firm yields.
• Jardine Matheson (JMH): +4.0% – benefited from renewed interest in conglomerate and value names.

Banks:

• DBS: +0.2% – marginal gain as investors rotated more aggressively into cyclicals and industrials.
• UOB: +0.6% – modest outperformance among the local banks.
• OCBC: Flat – consolidating after prior strength.

(Refer to the STI weekly performance table below.)

Technical Snapshot – STI
The STI remains in a strong primary uptrend, with prices grinding higher along rising support as money continues to flow into banks, industrials and blue‑chip value names. Short‑term momentum is mildly overbought, but shallow intraday pullbacks have been met with buying interest, keeping the 5,000 level a realistic upside target in the near term.

📊 Weekly chart:

• STI weekly chart

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Source: Some content and data are excerpted from publicly available market reports. Please comment to claim copyright ownership of any material, and it will be removed if necessary.

 

Fed Rate Unchanged, Gold and Silver See Sharp Friday Sell-off

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🇺🇸 U.S. Stocks – Weekly Wrap

Market Overview (Week Ended 30 Jan 2026)

U.S. equities ended a mixed week as investors digested earnings releases and the Fed’s policy message. The S&P 500 (SPX) briefly traded above the 7,000 level before pulling back from its intraday high. Large-cap value stocks outperformed growth, while small- and mid-caps lagged despite the Russell 2000 holding near recent highs.

Precious metals saw a sharp reversal. Gold and silver pulled back aggressively from recent record highs, driven by profit-taking and a reassessment of near-term rate-cut expectations. Silver corrected more deeply due to its higher beta. Both metals, however, remain well above year-ago levels.

Bitcoin also had a soft week, retreating by low double-digit percentages across major exchanges as crypto markets consolidated after their recent surge.

(Refer to the major indices’ weekly and January 2026 monthly performance tables below.)

Jan 2026 major index performance:

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📊 Major Indices – Weekly Performance

• Russell 2000: Continued multi-week outperformance, holding close to record territory as momentum cooled

• S&P 500: Finished modestly higher but slipped back into consolidation after briefly tagging 7,000

• Nasdaq Composite: Drifted lower amid profit-taking in large-cap tech leaders

• Style & size trends: Large-cap value outpaced growth; small- and mid-caps lagged mega-caps

Overall market behavior remains constructive, with rotation rather than broad selling pressure.

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🔍 Key Highlights for the Week & Outlook

Fed pauses after consecutive cuts
The Federal Reserve kept the federal funds target range unchanged at 3.50%–3.75%, reinforcing a patient, data-dependent stance after three rate cuts late last year. Policymakers acknowledged solid growth and a stabilising labour market, while noting inflation remains above the 2% target.

Kevin Warsh nominated as next Fed Chair
Former Fed governor Kevin Warsh was nominated to succeed Jerome Powell. Markets see him as incrementally more dovish on rates, though policy direction remains anchored by the Fed’s committee-based structure. Any shift is expected to be gradual rather than abrupt.

Earnings season gains momentum
Q4 earnings have been broadly supportive. Several Magnificent 7 names beat expectations, though share-price reactions were mixed. Microsoft sold off on concerns over higher capex and slower cloud growth. S&P 500 earnings are tracking high-single- to low-double-digit YoY growth, led by technology and communication services.

Inflation cooling, but uneven
Core PCE inflation continued to moderate, supported by easing services inflation. However, goods inflation has shown some re-acceleration, partly linked to tariffs and supply frictions. This uneven progress supports the Fed’s cautious stance.

Government funding uncertainty lingers
Lawmakers are close to extending funding for most of the government, though a brief partial shutdown remains possible. Historically, short shutdowns tend to have temporary, not structural, economic impact.

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🧭 S&P 500 Sectors in Focus

Seven of 11 sectors closed higher for the week.

Outperformers

• Energy (XLE) – Supported by firmer crude prices and earnings sentiment

• Communication Services (XLC) – Lifted by strong mega-cap platform earnings

• Utilities (XLU) – Benefited from defensive demand and rate expectations

Laggards

• Health Care (XLV) – Weighed by stock-specific headlines and rotation

• Consumer Discretionary (XLY) – Profit-taking after an extended rally

• Materials (XLB) – Softened alongside the pullback in metals

(Refer to the SPX sector ETF weekly performance below.)

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📈 Technical Snapshot – Major U.S. Indices

• S&P 500 (SPX): Consolidating near all-time highs; primary uptrend intact

• Nasdaq (COMP): Sideways digestion after a strong run-up

• Dow Jones (DJI): Range-bound as investors rotate among value, cyclicals and defensives

📊 Weekly charts:

• DJI

• SPX

• Nasdaq

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🇨🇳 China / 🇭🇰 Hong Kong Markets

Market Overview

Mainland China equities ended the week little changed.

• CSI 300: +0.08%

• Shanghai Composite (SSE): −0.44%

• Hang Seng Index (HSI): +2.38%

Hong Kong outperformed on a rebound in property and selected China tech counters.

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🌏 Key Highlights – China & Hong Kong

Lower provincial growth targets for 2026
Thirteen of 20 Chinese provinces that released 2026 plans set lower GDP growth targets than last year. Several key coastal regions, including Guangdong and Zhejiang, trimmed targets by about half a percentage point or shifted to lower-bound ranges.

Hong Kong property steadies; China tech builds momentum
Hong Kong home prices recorded their first annual increase since 2021, supported by lower rates and limited new supply. Meanwhile, HKEx continues to strengthen its role as a fundraising hub for China tech, with several IPO candidates lining up.

Selected picks (MSSG)

• ANTA Sports (2020 HK) – Puma stake enhances global diversification

• Harbin Electric (1133 HK) – Export surge supports strong FY25 profit growth

• Alibaba Group (9988 HK) – Structural initiatives to sustain AI investment

• Zijin Mining (2899 HK) – Production growth accelerates amid metals rally

(Refer to the Hang Seng Index constituents’ weekly performance table below.)

📊 Weekly charts:

• SSE

• HSI

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🇸🇬 Singapore Market – Weekly Wrap

Market Overview

The Straits Times Index (STI) edged up 0.28% to around 4,905, marking a fresh all-time high and extending its winning streak to six consecutive weeks. The index briefly traded above 4,920 before consolidating.

Singapore equities outperformed many regional peers as investors leaned on the city‑state’s safe‑haven profile, a firm Singapore dollar and resilient earnings and dividend prospects. Heavyweight counters such as DBS, UOL and Jardine Matheson hovered near record highs, while selected tech and industrial plays like CSE Global attracted fresh institutional inflows.

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🏆 Market Leaders

Outperformers

• UOL: +5.24%

• ST Engineering: +4.70%

• Wilmar: +4.63%

Banks

• DBS: +0.94%

• UOB: −3.11%

• OCBC: −0.28%

(Refer to the STI weekly performance table below.)

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📉 Technical Snapshot – STI

The STI remains in a strong primary uptrend, consolidating just below record highs after a six-week advance. Momentum is overbought but constructive, with shallow pullbacks potentially offering opportunities in quality banks, property and industrial leaders.

📊 Weekly chart:

• STI

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Source: Some content and data are excerpted from publicly available market reports. Please comment to claim copyright ownership of any material, and it will be removed if necessary.