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πΊπΈ 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.
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.
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.
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.
π Click below for weekly
charts:
π¨π³ China / ππ°
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.
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.
πΈπ¬ 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.
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.
π Click below for the
weekly chart:
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.
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.
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