U.S. Indexes Climb Toward Record Highs

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Main Content:

1.    Major indexes weekly performance

2.    U.S stocks weekly wrap 

3.    S&P 500 sector index weekly/month performance 

4.    China/Hong Kong stocks weekly wrap 

5.    Singapore stocks weekly wrap 

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

U.S.

For the week of Feb 14, major stock indexes finished higher with the Nasdaq Composite(COMP) leading the way, gaining 2.58% during the week. As measured by Russell indexes, growth stocks outperformed value shares for the second week this year. The S&P 500 Index(SPX) and Nasdaq Composite(COMP) both closed the week within 1% of all-time highs. Stocks had their best day of the week on Thursday, largely in response to Trump’s decision to not introduce new global tariffs, instead signing an order that—following further study—could lead to the implementation of reciprocal tariffs on a country-by-country basis by April 1. Refer to below major indexes performance table for the week.

Key highlights for the week and next:

1.    Higher inflation. The January consumer price index (CPI) came in hotter than expected, rising 0.5% from the prior month and 3% from a year ago, the strongest annual change since June. Core inflation ticked higher to 3.3% from 3.2%. Core inflation has been stuck around 3.3% for the past eight months, certainly higher than the Fed would like it to be. Offering a glimmer of hope is that rent inflation rose modestly last month. 

2.    Higher-for-longer interest rate expectations. At his semiannual testimony to the U.S. Senate, Powell reiterated that the Fed can be patient in cutting interest rates and that there is more work to do on inflation. Fed is comfortable keeping policy unchanged, but rate hikes are unlikely.

3.    Magnificent 7 stocks had their worst earnings season since 2022. The Magnificent 7 group of companies (Apple, Microsoft, Amazon, Alphabet, Meta, NVIDIA, and Tesla) that comprise about a third of the S&P 500 weight has lost some of its luster so far this year. Their performance is lagging in 2025, while sales growth in the fourth quarter of 2024 was at its slowest since 2022. Increasing competition in the artificial intelligence (AI) arena and rising spending are raising concerns about valuations, which carry a 35% premium to the broader index. 

4.    International stocks such as the Stoxx 600 and Hang Seng Index both outperforming the SPX so far this year. 

SPX sectors in play

Nine of the 11 SPX sectors recorded weekly gain. Growth stocks outperformed value shares, Technology(XLK) and Communication Services(XLC) led the gains while Health Care(XLV) and Financials(XLF) lagged. Refer to below SPX sectors ETF weekly performance table.

Indexes technical levels

All three indexes still been in sideway rangebound within its four-week trading range. The S&P 500 Index(SPX) and Nasdaq Composite(COMP) both closed the week within 1% of all-time highs. Uptrend intact well on their weekly charts. Click below three indexes for their weekly charts.

DJI weekly chart

SPX weekly chart

Nasdaq weekly chart

China/HK

China stock markets rose, lifted by hopes that U.S. tariffs on Chinese imports may prove to be milder than expected following the Trump administration’s decision to impose a 10% tariff on the country’s products in early February. The Shanghai Composite Index(SSE) added 1.3% while the blue chip CSI 300 gained 1.19%. In Hong Kong, the benchmark Hang Seng Index surged 7.04%, its best weekly performance in four months, driven by strength in tech shares as investors bought up artificial intelligence names. (refer to the above weekly performance table).

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

1.    China’s consumer price index rose a higher-than-expected 0.5% in January from a year ago, accelerating from December’s 0.1% rise, according to the country’s statistics bureau. January’s increase marked the first pickup in consumer inflation since August and was likely driven by a spending surge ahead of the eight-day CNY holiday. However, the producer price index fell 2.3% in January, unchanged from December’s reading and marking the 28th consecutive month of factory deflation. Stamping out deflation is a matter of growing urgency for Beijing, which unleashed a slew of monetary and fiscal stimulus last September to bolster demand. But a yearslong housing slump has prompted people to save rather than spend, frustrating officials’ attempts to boost consumer spending. 

2.    Moody’s lowered its credit rating for troubled real estate company China Vanke for the second time this year, deeper into junk territory, citing its weakening financial performance. Moody’s latest action raised the possibility of default for Vanke, a state-backed developer that was once considered too big to fail. China’s government is working on a plan to help Vanke plug a funding gap of about USD 6.8 billion this year, Bloomberg reported Wednesday, citing unnamed officials. Despite falling short of a full bailout, the reported plan suggested that the government would not allow Vanke to suffer the same fate as China Evergrande, whose 2021 default and subsequent liquidation flagged the severity of the country’s housing downturn. 

Refer to below .HSI stocks top 40 performance of the week.

Click below SSE and .HSI indexes for their weekly charts. 

SSE weekly chart

.HSI weekly chart

Singapore

The Straits Times Index (STI) edged up 0.42% for the week, after hitting record high of 3921.30 points on Monday but losing the momentum and drifting to sideway for the rest of the week. Seatrium was the top performer with a stunning 19.4% weekly gains, while SGX tumbled 9.3%. Refer to below STI stocks weekly performance table.

Click below for STI weekly chart.

STI weekly chart

Source: Some contents and data excerpted from various public market reports.

U.S. Stocks Lower Amid Tariff Uncertainty, Chinese Stocks Rally Led by Tech and EV Players

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Main Content:

1.    Major indexes weekly performance 

2.    U.S stocks weekly wrap 

3.    S&P 500 sector index weekly/month performance 

4.    China/Hong Kong stocks weekly wrap 

5.    Singapore stocks weekly wrap 

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

U.S.

For the week of Feb 7, major stock indexes declined during the week, although the S&P 500 Index(SPX) held up best, falling just 0.24%. Stocks opened sharply lower to start the week in response to the prior Friday’s announcement from Trump stating that the U.S. would be implementing 25% tariffs on imports from Mexico and Canada, along with 10% levies on Chinese imports, as of February 1. However, by the end of the day Monday, Trump had agreed to postpone tariffs on Mexico and Canada for 30 days, which provided some relief and seemed to help stocks recover some of their early losses by the end of the week. Refer to below major indexes performance table for the week.

Key highlights for the week and next:

1.    U.S. manufacturing PMI expanded in January for the first time in 27 months. Services PMI for January declined from December, although the reading remained in expansion territory at 52.8. ISM Manufacturing Business Survey Chair Timothy Fiore noted that potential tariffs represent a “huge threat” to a sustained recovery in the U.S. manufacturing sector. 

2.    Earnings Report: data shows 77% of S&P 500 Index companies that have reported fourth-quarter results through Friday have posted consensus-topping earnings, with an average growth rate of 16.4% (compared with estimates for 11.9% earnings growth). Of the companies that have reported thus far, 63% have also surpassed sales expectations.

3.    US Jobs gradual cooling. Nonfarm payrolls reported 143k jobs were added in January, down from December. The unemployment rate also declined unexpectedly, to 4.0% from 4.1% in the prior month.

SPX sectors in play

Seven out of the 11 SPX sectors recorded weekly gain. Energy(XLE) and Technology(XLK) were among top gainers while consumer Discretionary(XLY) lagged as Amazon(AMZN) dropped 4.05% after its releasing its earnings. Refer to below SPX sectors ETF weekly performance table.

Indexes technical levels

All three indexes have been in sideway rangebound within its four-week trading range. Uptrend still intact well on their weekly charts. Click below three indexes for their weekly charts.

DJI weekly chart

SPX weekly chart

Nasdaq weekly chart

China/HK

China stock markets rose in an abbreviated trading week as evidence of strong consumer spending over the Chinese New Year holiday offset Trump’s decision to slap a 10% tariff on Chinese imports. The Shanghai Composite Index(SSE) added 1.63% while the blue chip CSI 300 gained 1.98% in the shortened trading week. In Hong Kong, the benchmark Hang Seng Index advanced 4.49%, its best weekly performance in four months, driven by gains in technology companies. (refer to the above weekly performance table).

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

1.    Travel and retail spending over the Chinese New Year holiday, a key consumption period for China, pointed to improved domestic demand. Box office receipts over the eight-day holiday jumped 18% to USD 1.3 billion over last year’s holiday, Bloomberg reported, citing data from ticketing site Maoyan. The number of domestic trips rose to a record 501 million during the holiday, up 5.9% from last year, while spending on domestic trips rose 7% to the equivalent of USD 94.4 billion, according to China’s Ministry of Culture and Tourism.

2.    Despite the solid holiday sales data, other readings signaled weakness in the broader economy. The Caixin China General Services Purchasing Managers’ Index (PMI) slipped to 51 in January, down from 52.2 in December. Though the PMI reading surpassed the 50 level that separates growth from contraction, it revealed that the pace of expansion in business activity and new orders both slowed to their lowest rates in four months, according to an economist at Caixin. Earlier in the week, Caixin reported that its manufacturing PMI slowed to 50.1 in January, down from December’s 50.5 reading and missing economists’ forecasts. The readings from Caixin, a private survey, came a week after China’s official manufacturing PMI unexpectedly contracted in January.

Click below SSE and .HSI indexes for their weekly charts. 

SSE weekly chart

.HSI weekly chart

Singapore

The Straits Times Index (STI) edged up 0.15% for the week after fully recovering from early losses in the week. SGX stock price was a standout with 14% surge to close at 13.99, hitting 17 year high, after it released record first-half revenue and net profit for 1HFY2025 ended Dec 31, 2024. Refer to below STI stocks weekly performance table.

Click below for STI weekly chart.

STI weekly chart

Source: Some contents and data excerpted from various public market reports.

U.S. Stocks Lower on Corporate Earnings and AI Competition Fears

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Main Content:

1.    Major indexes weekly performance 

2.    U.S stocks weekly wrap 

3.    S&P 500 sector index weekly/month performance 

4.    China/Hong Kong stocks weekly wrap 

5.    Singapore stocks weekly wrap 

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

U.S.

For the week of Jan 31, major stock indexes finished the volatile week mostly lower, although the Dow Jones Industrial Average rose modestly to notch its third straight week of gains. The technology-oriented Nasdaq Composite(COMP) experienced a particularly steep drop on Monday, driven by a sell-off in tech stocks in response to the emergence of DeepSeek, a Chinese artificial intelligence (AI) developer. Refer to below major indexes performance table for the week and the month of January.

Index monthly performance for the month of Januanry:

Key highlights for the week and next:

1.    U.S. economy remains solid, Q4 GDP grows 2.3% annualized. Consumer spending, representing about 68% of the economy, was the main driver of the expansion, rising at a 4.2% annualized rate, the highest reading since the first quarter of 2023. For the year, real GDP grew by 2.8% in 2024, down from 2.9% in 2023. 

2.    Earnings Report: Four of the Magnificent 7 companies reported in the week.  Apple(AAPL), Microsoft(MSFT) and Meta(META) delivered strong results, above estimates for both earnings per share and revenue, while Tesla(TSLA) missed on both measures. Despite disappointing results, Tesla shares traded higher on optimism over the favorable regulatory environment, new more affordable models, and autonomous vehicles, including Robotaxi. 

3.    Interest rate. The Fed’s FOMC meeting this week, decided to hold rate steady, maintaining its target interest rate range at 4.25% to 4.5%, as expected. Core personal consumption expenditure (PCE) - the Fed's preferred inflation gauge – has moderated to 2.8% from the 2022 peak of more than 5% but remains above the 2% target, and the pace of disinflation has slowed. With the fed funds rate currently around 4.35% and a neutral rate generally about 1% above inflation, monetary policy likely remains restrictive. 

4.    Technology stocks are down this week but have rebounded from Monday’s sharp sell-off that was sparked by Chinese AI startup DeepSeek. The company's AI model reportedly performs comparably to those of leading U.S. technology companies, despite being developed at a fraction of the cost and requiring less computing power. 

5.    Tariffs risks continue to loom: President Donald Trump reiterated his plan to impose 25% tariffs on Mexico and Canada, the U.S.’s top two trading partners, by February 1, while also threatening to levy an additional 10% tariff on goods from China. This comes after the prior week’s comments from the president, which seemed to give investors hope that he would take a softer-than-anticipated stance on global tariffs.

 

SPX sectors in play

Five out of the 11 SPX sectors recorded weekly gain. Communication Services(XLC) and Health Care(XLV) outperformed while Technology(XLK) and Energy(XLE) lagged. DeepSeek released a new open-source large language model that reportedly requires much less energy and processing power than other leading AI applications, leading to competitive concerns in the broader AI space. The news led to shares of NVIDIA falling nearly 17% on Monday. Refer to below SPX sectors ETF weekly performance table.

Indexes technical levels

Both the SPX and COMP indexes closed 1^st week lower after two-week up streak, while DJI continues to record its 3^rd weekly gain. All three weekly chart uptrend well intact. Click below three indexes for their weekly charts.

DJI weekly chart

SPX weekly chart

Nasdaq weekly chart

China/HK

China stock markets edged lower in a holiday-shortened week. The Shanghai Composite Index(SSE) declined 0.06% while the blue chip CSI 300 was down 0.41% on Monday, the last day of trading before the CNY holiday. Markets on the mainland are closed from January 28 to February 4 for the nationwide holiday and will resume trading February 5. In Hong Kong, the benchmark Hang Seng Index gained 0.79% on Monday and a half-day session on Tuesday before closing for the rest of the week(refer to the above weekly performance table).

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

1.    Government data released on Monday showed that China’s economy kicked off 2025 on weak footing. The official manufacturing Purchasing Managers’ Index (PMI) unexpectedly fell to 49.1 in January, according to the country’s statistics bureau. The nonmanufacturing PMI—which measures construction and services activity—slipped to 50.2 from December’s 52.2. 

2.    China’s manufacturing PMI is typically softer in January as millions of workers return to their hometowns for the Chinese New Year. However, other data released on Monday pointed to weakness in China’s economy at the end of 2024. Profits at large industrial companies fell 3.3% in 2024, according to the statistics bureau, marking the third straight year of declines. Economists believe the drop in industrial profits reflected the deflationary pressures on China’s economy, which is entering its third year of economy-wide price declines amid a yearslong real estate downturn that has curbed domestic demand. 

Click below SSE and .HSI indexes for their weekly charts. 

SSE weekly chart

.HSI weekly chart

Singapore

The Straits Times Index (STI) closed a strong week with 1.36% gain to end the 1^st month, closing at 3855.82 level, most of the gains attributed to Friday’s 1.4% up, led by the three heavyweight banks and SingTel. It closed about 30 points off its record high hit recently. Refer to below STI stocks weekly performance table.

Click below for STI weekly chart.

STI weekly chart

Source: Some contents and data excerpted from various public market reports.