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.