Stocks Rebound on Solid Corporate Earnings

 

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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 Aug 8, U.S. stock indexes rebounded from the prior week’s sell-off, led by strong performance among technology and consumer discretionary stocks. The technology-heavy Nasdaq Composite(COMP) performed best, closing the week at a record high, followed by the S&P 500(SPX) and Dow Jones(DJI) indexes.

In trade policy news, the Trump administration’s new round of global tariffs kicked in on Thursday, though several large U.S. trading partners had already reached agreements prior to the week’s deadline, and the market reaction appeared to be more muted compared with other recent tariff actions. Other tariff-related headlines included news that President Donald Trump would double tariffs on Indian goods to 50% as a punishment for the country’s purchase of Russian oil, as well as reports that U.S. negotiations with Switzerland ended without reaching a deal, leaving levies on Swiss imports at 39%.  Refer to below major indexes weekly performance.

Key highlights for the week and next:

1.    Services sector- representing roughly 71% of the U.S. GDP- remains in expansion, though key readings continued to diverge in Jul. The Services PMI falling to 50.1, missing estimates of 51.3. 

2.    Corporate earnings have been stronger than expected, driving earnings growth estimates sharply higher to 9.7%, from 3.8% at the end of the second quarter. With 90% of S&P 500 companies reporting quarterly results, corporate earnings season is winding down. Walt Disney Company and McDonald's announced earnings that exceeded estimates2. Importantly, Walt Disney's revenue was about in line with forecasts, while that of McDonald's beat expectations2, indicating that, combined with other recent data, consumers appear to remain mostly resilient. 

3.    September rate cut probability rises. As of Friday afternoon, markets tracked by the CME FedWatch tool were indicating a roughly 90% chance of the Fed lowering rates at its next meeting. 

4.    Numerous stock-specific headlines helped drive market sentiment during the week. Notably, Apple announced that it would invest USD 100 billion—in addition to a previously announced USD 500 billion—in developing U.S.-based manufacturing over the next four years, which would reportedly exempt the company from the Trump administration’s steep tariffs on semiconductors. Shares of the iPhone maker closed the week 13.33% higher, helping support the broader indexes.

 

SPX sectors in play

Eight out of the 11 SPX sectors recorded weekly gains, led by Consumer Discretionary(XLY) and Tech(XLK) sectors, which the technology-heavy Nasdaq Composite(COMP) to close the week at a record high. Health Care(XLV) and Energy(XLE) lagged. Refer to below SPX sectors ETF weekly performance table.

Indexes technical levels

The Nasdaq(COMP) index closed at record high, the SPX also rebounded to near record highs hit in previous week. The DJI index within its six-week consolidation range near record high of 45073 level. Click below three indexes for their weekly charts.

DJI weekly chart

SPX weekly chart

Nasdaq weekly chart

China/HK

Mainland China stock markets rose for the week, helped by trade data underscoring the strong global demand for Chinese products despite the U.S.- sparked trade war. The Shanghai Composite Index(SSE) added 2.11% and the blue-chip CSI 300 advanced 1.23%. In Hong Kong, the benchmark Hang Seng Index rose 1.43%. (refer to the above weekly performance table).  

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

1.    Total exports in July surged a larger-than-expected 7.2% from a year ago to USD 322 billion, according to data released by China’s customs authorities. Increased shipments to Europe, Southeast Asia, Australia, and other markets outweighed the continued slump in U.S.-bound shipments, which sank 22% year on year in July after falling 16.1% in June. The latest data showed that Chinese companies were able to compensate for the loss of U.S. business with increased sales to other markets. Weakness in China’s yuan currency, which fell against the U.S. dollar and other currencies in July, also boosted exports last month, analysts said. 

2.    Earlier in the week, a private survey showed an unexpected uptick last month in services activity, possibly indicating a turnaround in weak consumer sentiment. The S&P China services purchasing managers index rose to 52.6 in July from June’s 50.6 reading, the strongest growth in 14 months. While summer marks the peak season for services such as tourism, transportation, and entertainment, last month’s expansion showed the resilience of China’s services sector, which has been hit by sluggish consumer demand amid a prolonged housing downturn.

Refer to below .HSI stocks 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) added 2.07% this week, rebounded after previous week’s decline. The index has advanced 12% so far in 2025, outforming the U.S benchmark SPX and several regional peers.

Singapore’s stock market is drawing interest from institutional and retail investors alike, helped by a potent combination of equity market reforms, rising dividends, foreign fund inflows and country’s enduring appeal as a geopolitical safe haven, said market watchers. “We are in a bull market. And I’m going to tell you today that this is still a baby bull,” said Thilan Wickramasinghe, head of research at Maybank.

According to CLSA research, Singapore’s average dividend payout ratio of 60% is second only to Australia’s at 74% in Asia-Pacific according to CLSA Research. The Southeast Asian nation’s market appeal is also lifted by how the Singapore dollar has been strengthening against the greenback, appreciating about 6% year to date, with Jefferies reportedly forecasting that the currency could reach parity with the dollar in the next five years. Refer to below table for STI index stocks weekly performance.

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.