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.

Beyond the Headlines: Fundamentals Still in the Driver’s Seat

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🇺🇸 U.S. Stocks – Weekly Wrap

Market Overview

For the week ended Jan 23, U.S. major indices finished a volatile week lower, while small-cap and value stocks continued to outperform large-cap growth. Market action reflected healthy consolidation following recent record highs rather than a broad risk-off move. 

The Russell 2000 (RUT) held near its recent all-time highs, while the S&P 500 (SPX) and Nasdaq Composite (COMP) traded sideways as investors digested earnings results and fresh economic data. Leadership continued to broaden beyond mega-cap technology. 

Despite ongoing geopolitical headlines and policy uncertainty, U.S. equities remain supported by moderating inflation, resilient consumer demand and steady earnings growth. Market rotation toward cyclicals, value and smaller-cap stocks remains a defining feature early in 2026. 

Refer to the major indices’ weekly performance table below.

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Major Indices – Weekly Performance

For the week:

• Russell 2000: Continued to outperform, holding near record highs
• S&P 500: Consolidated after recent all-time highs
• Nasdaq Composite: Modest pullback amid profit-taking in large-cap tech
• Value stocks: Outperformed growth for a fourth consecutive week

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

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Key Highlights for the Week and Outlook

1️⃣ SPX saw its largest single-day drop since October
The S&P 500 registered its sharpest daily decline since October amid renewed fears of a global trade war after former President Trump threatened new tariffs on European nations opposing U.S. involvement in Greenland. Markets reversed course on Wednesday after Trump appeared to soften his stance.

2️⃣ Gold and silver were the standout beneficiaries
Gold and silver emerged as the biggest winners from headline-driven volatility. Year-to-date gains stand at approximately 15% for gold and 45% for silver, on top of last year’s strong advances of 65% and 142%, respectively.

3️⃣ GDP revised higher; inflation remains sticky
U.S. Q3 GDP was revised up to 4.4%, slightly above estimates and higher than Q2’s 3.8%.
November core PCE rose 0.2% month-on-month. On a year-over-year basis, core PCE increased 2.8%, remaining above the Fed’s long-term inflation target.

4️⃣ FOMC meeting ahead
The Fed is set to meet on Jan 27–28, with policy rates widely expected to remain on hold following three consecutive rate cuts in the second half of 2025.

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S&P 500 Sectors in Focus

Six out of 11 sectors closed higher for the week, reflecting continued rotation.

Outperformers:

• Energy (XLE)

• Materials (XLB)

• Communication Services (XLC)

Laggards:

• Financials (XLF)

• Utilities (XLU)

• Industrials (XLI)

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, uptrend intact
• Nasdaq (COMP): Sideways consolidation after strong rally
• Dow Jones (DJI): Holding firm above prior breakout levels

📊 Click below for weekly charts:

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

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🇨🇳 China / 🇭🇰 Hong Kong Markets

Market Overview

China equities traded cautiously this week as investors weighed mixed macro data and profit-taking following a strong early-January rally.

• CSI 300: -0.62%

• Shanghai Composite: +0.84%

• Hang Seng Index (HSI): -0.36%

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Key Highlights – China & Hong Kong

1️⃣ China’s economy met growth targets
China’s GDP grew 4.5% YoY in Q4, while full-year 2025 growth reached 5%, marking the third consecutive year the country met its official target. Q4 growth was the slowest since reopening in late 2022.

2️⃣ Domestic demand remains fragile
Industrial production rose 5.2% in December, beating estimates. However, fixed asset investment fell 3.8% in 2025 — its first annual decline in nearly three decades. Retail sales rose just 0.9%, undershooting expectations.

3️⃣ Exports remain a key support
Export growth continues to offset domestic weakness, particularly shipments to Southeast Asia and Europe. Rising global protectionism and tougher comparisons may weigh on momentum in early 2026.

Hong Kong update
Markets navigated a volatile week amid mixed macro signals and geopolitical uncertainty. Alibaba Group remains a bright spot as it lays groundwork for a potential IPO of its AI chip unit, T-Head. Aviation stocks outperformed on favorable RMB trends and strong Lunar New Year travel demand.

Selected picks (MSSG):

• Kuaishou (1024 HK): Kling AI 2025 revenue beat expectations

• Trip.com (9661 HK): Attractive entry point

• Air China (753 HK): Beneficiary of peak travel demand (Year of the Horse)

• UBTech Robotics (9880 HK): Partnership with Airbus for industrial robots

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

📊 Click below for weekly charts:

• SSE weekly chart
• HSI weekly chart

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🇸🇬 Singapore Market – Weekly Wrap

Market Overview

The Straits Times Index (STI) hit a fresh all-time high this week, edging up 0.87% to close at 4,891.45, extending its winning streak to five consecutive weeks.

Market leadership continued to broaden. UOB surged 7.51%, playing catch-up after lagging peers previously. OCBC added 4.16%, while DBS took a breather, slipping 0.79% after last year’s strong 37% rally. Property stocks remain strong performers year-to-date, led by UOL (+17.9%), Hongkong Land (+17.6%), and CDL (+15.1%).

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Market Leaders

Outperformers:

• UOB: +7.51%

• CapitaLand Investment (CLI): +4.45%

• ThaiBev: +4.35%

Banks:

• DBS: -0.79%

• UOB: +7.51%

• OCBC: +4.16%

Refer to the STI weekly performance table below.

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Technical Snapshot – STI

The STI remains in a strong primary uptrend.

📊 Click below for the weekly chart:

• STI weekly chart

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Final Thoughts

Markets continue to navigate headline-driven volatility with resilience. Healthy sector rotation, easing inflation pressures and steady earnings growth suggest the bull market remains intact, though with greater selectivity.

As earnings season unfolds, investors are best served by focusing on fundamentals, diversification and trend confirmation, rather than short-term noise.

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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 Finish Mixed as Earnings Season Kicks Off

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🇺🇸 U.S. Stocks – Weekly Wrap

Market Overview

For the week ended Jan 16, U.S. major indices finished mixed. Small-cap and value stocks extended their year-to-date leadership over large-cap and growth names.

The Russell 2000 (RUT) advanced to fresh all-time highs during the week, while large-cap indices pulled back modestly from the prior week’s record levels. The S&P 500 (SPX) and tech-heavy Nasdaq Composite (COMP) declined 0.38% and 0.66%, respectively. Value stocks outperformed growth for the third consecutive week.

Since the start of 2026, markets have faced a steady stream of geopolitical, policy and trade-related headlines. Yet equities have remained resilient, largely shrugging off volatility.

Supportive fundamentals — including low energy prices, easing inflation, steady economic growth and broadening earnings — continue to anchor market stability, while leadership rotates toward cyclicals, small- and mid-caps, and international equities as the bull market matures.

Note: U.S. financial markets will be closed on Monday for a public holiday and will resume trading on Tuesday.

Refer to the major indices’ weekly performance table below.

Major Indices – Weekly Performance

For the week:

• Russell 2000 & S&P MidCap 400: Reached new all-time highs
• S&P 500 & Nasdaq: Pulled back modestly after prior record closes
• Value stocks: Outperformed growth for the third straight week

Overall market action reflects healthy rotation rather than broad risk-off behavior.

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Key Highlights for the Week and Outlook

1. Markets look past headline risk
Despite a barrage of geopolitical and policy headlines, equities showed little stress. Investors remain focused on economic fundamentals and earnings trends rather than day-to-day noise.

2. Inflation cools further
U.S. core CPI rose at the slowest pace since March 2021, increasing 2.6% YoY in December, below expectations. Headline CPI rose 2.7% YoY, while producer prices ticked slightly higher, driven mainly by energy.
This keeps the door open for gradual Fed easing later in 2026, though a January cut remains unlikely.

3. Economic momentum remains durable

• Retail sales surprised to the upside, rising 0.6%
• Jobless claims remain historically low
• The labor market appears to be stabilising after a period of softness

Looking ahead, households are expected to receive USD 100–150bn in tax refunds, which could provide a meaningful spending tailwind into early 2026.

4. Housing data beats expectations

• New home sales exceeded estimates
• Existing home sales rose 5.1% in December
• Mortgage rates continued to trend lower, with the 30-year fixed rate approaching 6%

Lower rates and slower home price growth are beginning to support housing activity.

5. Earnings season kicks off
Q4 earnings season began with bank results, which were mixed:

• JPMorgan (JPM) & Citigroup (C): Shares declined on lower profits
• Morgan Stanley (MS) & Goldman Sachs (GS): Shares rose on better-than-expected results

Meanwhile, Taiwan Semiconductor (TSM) reported a sharp jump in Q4 profits, reinforcing optimism around AI-related demand.

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S&P 500 Sectors in Focus

Six out of 11 sectors closed higher for the week.

Top performers:

• Consumer Staples (XLP)
• Materials (XLB)
• Industrials (XLI)

Laggards:

• Communication Services (XLC)
• Financials (XLF)

Refer to the SPX sector ETF weekly performance below.

Market Rotation – A Defining Theme in 2026

Market leadership continues to broaden:

• Small- & mid-caps
• Value stocks
• Cyclical sectors such as Industrials, Materials and Consumer Discretionary
• International equities

This marks a clear shift from the narrow, mega-cap-led rally of recent years. As long as earnings continue to confirm this trend, further upside driven by diversification — rather than concentration — remains possible.

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Technical Snapshot – Major U.S. Indices

• S&P 500 (SPX): Consolidating near all-time highs
• Nasdaq (COMP): Consolidating near all-time highs
• Dow Jones (DJI): Holding well after last week’s record breakout

Overall, uptrends across all three major indices remain intact.

📊 Click below for weekly charts:

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

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🇨🇳 China / 🇭🇰 Hong Kong Markets

Market Overview

Mainland China equities pulled back after regulators tightened margin-financing rules, raising required collateral to 100% from 80%. The move reflects growing official unease following a sharp rally earlier in January.

• CSI 300: -0.57%
• Shanghai Composite: -0.45%
• Hang Seng Index (HSI): +2.34%

Despite the tightening, Chinese equities remain sharply higher over the past month, driven by AI-related themes and optimism around domestic tech champions.

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Key Highlights – China & Hong Kong

• China exports surged 6.6% in December
• 2025 trade surplus hit a record USD 1.2 trillion
• Export growth to Southeast Asia and Europe offset tariff-driven weakness to the U.S.

Hong Kong – IPO Momentum Continues

Hong Kong markets remained resilient amid strong capital-raising activity:

• Alibaba Health (0241.HK): +17.9% on strategic pharma partnership
• Kuaishou (1024.HK): Plans to raise USD 2bn via dual-currency bonds
• CK Hutchison (0001.HK): Seeking ~USD 30bn valuation for retail unit IPO

Despite a brief pullback after a strong start to 2026, global fund inflows remain robust, reinforcing Hong Kong’s role as a key global capital-raising hub.

Selected picks (MSSG):
Alibaba Group (9988.HK), HKEX (0388.HK), Hongkong Land (H78), Ping An Insurance (2318.HK)

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

📊 Click below for weekly charts:

• SSE weekly chart
• HSI weekly chart

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🇸🇬 Singapore Market – Weekly Wrap

Market Overview

The Straits Times Index (STI) hit a fresh all-time high this week, rising 2.2% to close at 4,849.10, extending its strong start to the year.

While some investors are questioning whether upside remains at current levels, market leadership continues to broaden. Banks remain a key pillar of support, while selective opportunities are emerging in property-related counters and defensive yield plays such as REITs.

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Market Leaders

Top performers:

• UOL: +7.7%
• ST Engineering: +7.0%
• Hongkong Land: +6.9%

Banks:

• DBS: +2.6%
• UOB: +2.0%
• OCBC: +3.2%

Refer to the STI weekly performance table below.

Technical Snapshot – STI

The STI remains in a strong primary uptrend, supported by broad-based participation and improving global risk sentiment.

📊 Click below for the weekly chart:

• STI weekly chart

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Final Thoughts

Despite elevated geopolitical and policy uncertainty, economic resilience and earnings strength continue to dominate market direction. Healthy rotation, easing inflation pressures and solid consumer demand suggest the bull market still has room to run.

Headline-driven volatility is likely to persist, but as long as fundamentals remain intact, investors are best served by focusing on diversification and earnings durability rather than short-term noise.

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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 Rally to Start the Year

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Market Overview

For the week of Jan 9, U.S. equities kicked off 2026 on a strong note, brushing aside geopolitical headlines and policy noise. Most major indices pushed to fresh all-time highs, while market leadership broadened beyond mega-cap growth stocks.

Small-cap and value stocks led the advance, a healthy sign for overall market breadth.

Major Indices – Weekly Performance

For the week ending 9 January 2026:

• Russell 2000 (RUT): +4.62% (best performer)

• S&P 500 (SPX): +1.57%

• Equal-weighted S&P 500: Outperformed the market-cap-weighted index

This rotation suggests investors are becoming more confident in the broader economy rather than relying solely on large-cap tech leadership. Refer to the major indexes’ weekly performance below.

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🇺🇸 U.S. Stocks – Weekly Wrap

Key Highlights

1. Homebuilders surge on mortgage support news
U.S. homebuilders and related stocks such as Lennar (LEN) and Toll Brothers (TOL) rallied after former President Trump announced plans to instruct government-controlled mortgage agencies Fannie Mae and Freddie Mac to purchase USD 200 billion of mortgage bonds. The move aims to lower mortgage rates, and credit spreads in agency MBS tightened sharply following the announcement.

2. Jobs data soft, but still stable
December nonfarm payrolls increased by 50k, below expectations, with October and November revised lower by a combined 76k. Despite this, the unemployment rate edged down to 4.4%, pointing to normalization rather than labor market stress.

3. Manufacturing weak, services hold up

• ISM Manufacturing PMI: 47.9 (10th straight month of contraction)

• ISM Services PMI: Rose to the highest level of the year, supported by stronger new orders and employment

4. Rate cut expectations remain measured
Softer job growth and easing wage pressures support expectations for one to two rate cuts in 2026, rather than aggressive easing. Upcoming inflation data will be key.

5. Earnings season begins
The Q4 earnings season kicks off next week, with JPMorgan(JPM) reporting first on Monday.

S&P 500 Sectors in Focus

10 out of 11 S&P 500 sectors closed higher for the week.

Top performers:

• Consumer Discretionary (XLY)

• Materials (XLB)

• Industrials (XLI)

Laggard:

• Utilities (XLU)

Homebuilders rebounded after Trump's announcement(refer to above), while aerospace and defense stocks remained volatile amid mixed signals on capital returns versus defense spending. Refer to the SPX sector ETF weekly performance below.

Technical Snapshot – Major U.S. Indices

• S&P 500 (SPX): New all-time high, uptrend intact

• Dow Jones (DJI): New all-time high

• Nasdaq Composite: Testing the upper end of a six-week consolidation range

📊 Click below for weekly charts:

• DJI weekly chart

• SPX weekly chart

• Nasdaq weekly chart

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🇨🇳 China / 🇭🇰 Hong Kong Markets

Mainland China equities advanced, driven mainly by AI-related trades.

• Shanghai Composite (SSE): +3.82%

• CSI 300: +2.79%

• Hang Seng Index (HSI): -0.41%

Onshore market turnover rose to about CNY 2.8 trillion (~USD 400.6 billion), while margin financing balances hovered near record levels, according to Bloomberg.

Key China / HK Takeaways

1. Inflation shows tentative improvement

• CPI: +0.8% YoY in December (in line with expectations)

• PPI: -1.9%, the 39th straight month of decline, but the smallest drop in over a year

• Core CPI: +1.2% for the third consecutive month

2. Deflation remains a key concern
China recorded 0% inflation for the full year, the lowest since 2009 and well below the official ~2% target. This reinforces expectations that the PBoC will maintain an easing bias in 2026. Refer to below Hang Seng Index constituents’ weekly performance table.

📊 Click below for charts:

• SSE weekly chart

• HSI weekly chart

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🇸🇬 Singapore Market – Weekly Wrap

The Straits Times Index (STI) extended its strong uptrend, rising 1.9% to a new all-time high.

Market leaders:

• CDL +10.6%

• JMH +10.5%

• Hongkong Land +9.7%

Banks:

• DBS +2.1%

• UOB +2.1%

• OCBC -0.25% (profit-taking after hitting an intra-week high of 20.25)

Refer to below STI’ weekly performance table.

📊 Click below for the STI 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.

2025 Closes Strong on Record Highs as the New Year Kicks Off

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Main Content:

1.    Major indices’  performance 2025

2.    U.S stocks yearly wrap 

3.    S&P 500 sector index  performance 2025

4.    China/Hong Kong stocks yearly wrap 

5.    Singapore stocks yearly wrap 

6.    Major indices weekly chart and technical support & resistance levels

U.S.

For the week of Jan 2, U.S. equities retreated modestly during the holiday-shortened week amid light trading volumes, though major indexes closed out 2025 with double-digit gains for the third consecutive year. The Nasdaq Composite (COMP) underperformed for the week, followed by the Russell 2000 (RUT) and S&P 500 (SPX), while the Dow Jones Industrial Average (DJI) proved relatively more resilient.

The scale of outperformance in U.S. mega-cap technology stocks throughout this bull market has been striking. Over the past three years, the Magnificent Seven have surged 325%, far outpacing the approximately 80% gain in the S&P 500, 40% in the Russell 2000, 50% in the Euro Stoxx, and 95% in Japan’s Nikkei.

Refer to the major indexes’ 2025 performance table below. The Hang Seng Index (HSI) was the top performer with a 28% gain, followed by the Straits Times Index (STI) at 23%, Nasdaq Composite (20%), Shanghai Composite (18%), S&P 500 (16%), Dow Jones Industrial Average (13%), and FBM KLCI (2%).

Note: price return, excluding dividends

Key highlights for the week and next:

1.    U.S. economic resilience remains intact. Recent data continue to point to a firm economic backdrop heading into 2026. While shutdown-related distortions clouded late-2025 releases, consumer activity remains healthy, reinforcing expectations for continued expansion rather than a sharp slowdown. 

2.    Inflation trends remain supportive but require confirmation. With prior CPI readings affected by data collection issues, upcoming inflation and labor reports will be closely watched for a cleaner read. Consensus expectations point to inflation holding near 3% before easing later in 2026. 

3.    Labor market shows cooling, not stress. Jobless claims declined for a third consecutive week to 199k, among the lowest readings of the year, while continuing claims also edged lower—suggesting a labor market that is gradually normalizing rather than deteriorating. 

4.    Fed outlook remains finely balanced. December FOMC minutes highlighted divisions among policymakers, with most officials open to further easing if inflation cools as expected, while others prefer patience. Markets continue to price limited rate cuts in 2026 rather than aggressive easing. 

5.    Housing activity shows early signs of stabilization. Pending home sales rose 3.3% in November, the largest increase since early 2023, supported by lower mortgage rates and wage growth outpacing home price appreciation. 

6.    Diversification themes gain importance into 2026. With mega-cap technology leadership showing signs of broadening, earnings growth is expected to become more evenly distributed across sectors, mid-caps, and international markets—reinforcing the case for diversified portfolios.

 

SPX sectors in play

Within the S&P 500, Energy was among the few sectors to post gains, supported by higher oil prices amid elevated geopolitical tensions. Looking into 2026, cyclicals, value-style investments, mid-caps, and international equities continue to trade near historical average valuations and may benefit from improving liquidity conditions. Refer to the SPX sector ETF performance table for 2025 below.

Note: price return, excluding dividends

Indices technical levels

All three major U.S. indexes appear to be consolidating sideways while maintaining their primary uptrends. Click below three indices for their weekly charts.

DJI weekly chart

SPX weekly chart

Nasdaq weekly chart

China / Hong Kong

Mainland China equity markets ended the holiday-shortened week mixed. The Shanghai Composite Index (SSE) edged higher, while the blue-chip CSI 300 declined slightly. In Hong Kong, the Hang Seng Index (HSI) rose 2.01%, led by technology and AI-related stocks.

Key highlights for the week and outlook for China/HK:

Official data released Wednesday showed China’s manufacturing PMI rose to 50.1 in December, up from 49.2 in November, ending an eight-month contraction streak. The improvement supports the view that Beijing is likely to adopt a measured approach to stimulus in 2026, though some analysts continue to argue for more aggressive measures to revive domestic consumption.

Refer to below Hang Seng Index constituents’ performance table for 2025.

Click below for SSE and .HSI weekly chart.

SSE weekly chart

.HSI weekly chart

 

Singapore

The Straits Times Index (STI) delivered a strong performance in 2025, closing up 22.67% (price return, excluding dividends)—its second consecutive year of double-digit gains, following a 16.89% return in 2024. Analysts remain constructive on the STI heading into 2026, supported by stable fundamentals, attractive yields, and improving regional sentiment.

Refer to below STI index stocks’ performance for 2025.

Click below for STI weekly chart.

STI weekly chart

Source: Some contents and data excerpted from various public market reports. Please comment to claim copyright ownership of any material, and I will remove it if necessary.