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πΊπΈ U.S. Stocks – Weekly
Wrap
Market Overview
For the week ended 6 Feb 2026, U.S. major indexes closed a volatile week mixed
as leadership rotated sharply away from large‑cap technology toward value,
cyclicals and smaller‑cap stocks. High‑growth tech names suffered their weakest
weekly performance since November, while “old‑economy” sectors extended their
year‑to‑date outperformance.
The Nasdaq Composite (COMP) was the
weakest major index, while the S&P 500 (SPX) finished little changed on the
week. In contrast, the Dow Jones Industrial Average (DJI), S&P MidCap 400
and Russell 2000 (RUT) posted solid gains, with the Russell 1000 Value Index
outperforming its growth counterpart by more than 400 basis points and
underscoring the strength of the ongoing rotation. Market action points to
repricing and sector rotation rather than a deterioration in fundamentals, as
investors reassess crowded mega‑cap growth exposure amid rising volatility.
(Refer to the major indices’ weekly tables below.)
Major Indices – Weekly Performance
- Nasdaq
Composite: −1.84%, worst performer amid broad tech sell‑off.
- S&P
500: Flat on the week, consolidating below recent highs.
- Dow
Jones: Notched solid gains, supported by value and cyclical names.
- S&P
MidCap 400: Registered a strong advance.
- Russell
2000: Extended its run of small‑cap leadership.
Overall, value stocks significantly
outpaced growth, reinforcing the shift away from mega‑cap tech dominance.
Key Highlights for the Week and Outlook
1️⃣ Rotation toward “old
economy” sectors accelerates
As tech stocks sold off, investors rotated into traditional sectors such as
energy, chemicals, transportation, consumer staples and regional banks, which
are benefiting from more attractive valuations and improving earnings momentum.
The DJI, a useful proxy for “old‑economy” leadership, crossed the 50,000 level
for the first time in history on 6 Feb and closed above that milestone.
President Trump publicly highlighted the achievement, framing the new high as a
sign of U.S. market strength. Economists have been revising growth estimates
higher and now generally expect U.S. GDP to expand by roughly 2.5% in
2026, reflecting a soft‑landing rather than a recession scenario.
2️⃣ Tech reprices, not collapses
Despite recent weakness, technology earnings remain robust, with sector profits
still projected to grow at a strong double‑digit pace year‑on‑year in 2026. The
recent sell‑off has been driven mainly by valuation compression rather than
earnings deterioration, as investors reassess AI‑related disruption risks,
lofty expectations and the surge in capital‑expenditure plans across mega‑cap
platforms.
3️⃣ Cooling U.S. labor market
becomes clearer
A heavy slate of labor data pointed to softer conditions. ADP private payrolls
for January came in well below consensus, job openings declined to their lowest
level since the early‑pandemic period, initial jobless claims edged higher, and
announced layoffs rose versus a year earlier, all signalling a continued
cooling in labor demand. The overall message is that the labour market is
normalising from very tight levels rather than collapsing outright.
4️⃣ Manufacturing rebounds;
services remain steady
U.S. manufacturing activity rebounded into expansion, with the ISM
Manufacturing PMI rising to 52.6 in January 2026, its first reading above
50 in a year and the strongest since 2022, driven by a sharp improvement in new
orders. At the same time, the ISM Services PMI registered 53.8 in
January, unchanged from December, marking its 19th consecutive
month in expansion territory and confirming steady momentum in the
broader services economy.
5️⃣ Risk appetite cools;
speculative assets pull back
Risk appetite softened across more speculative corners of the market. Bitcoin
extended its pullback from recent highs, while gold and silver corrected
meaningfully after becoming technically overextended, as firmer real yields and
the perception that Fed rate cuts may be delayed weighed on non‑yielding and
high‑beta assets. The retracement looks more like healthy profit‑taking than a
structural shift in long‑term trends at this stage.
S&P 500 Sectors in Focus
Eight of 11 S&P 500 sectors finished
higher on the week, with leadership continuing to broaden beyond technology.
Consumer Staples (XLP) and Industrials (XLI) led gains, while Tech (XLK),
Consumer Discretionary (XLY) and Communication Services (XLC) — key parts of
the growth complex — underperformed.
Outperformers:
- Consumer
Staples (XLP) – supported by defensive inflows and resilient earnings.
- Industrials
(XLI) – benefited from improving manufacturing data and infrastructure‑related
demand.
- Materials
(XLB) – helped by signs of an industrial upturn and earlier strength in
selected commodities.
Laggards:
- Technology
(XLK) – weighed by valuation compression and profit‑taking in AI leaders.
- Consumer
Discretionary (XLY) – softened alongside higher‑beta growth names.
- Communication
Services (XLC) – dragged down by weakness in internet and media platforms.
This rotation is helping normalise
valuations and reduce concentration risk across portfolios. (Refer to the SPX
sector ETF weekly performance table below.)
Technical Snapshot – Major U.S. Indices
- S&P
500 (SPX): Consolidating just below record highs, with the primary uptrend
intact despite increased sector churn.
- Nasdaq
Composite (COMP): Under pressure in the near term as large‑cap tech
digests prior gains, but still holding above key medium‑term support
levels.
- Dow
Jones Industrial Average (DJI): Extended its breakout to new all‑time
highs and traded above the 50,000 mark for the first
time, confirming relative strength in value and cyclical leadership.
π Weekly charts:
π¨π³ China / ππ°
Hong Kong Markets
Market Overview
Mainland A‑shares ended the week lower as volatility in commodity markets and
weakness in technology stocks weighed on sentiment. The Shanghai Composite
Index slipped 1.27%, while the blue‑chip CSI 300 Index fell 1.33%.
In Hong Kong, the Hang Seng Index dropped about 3.0% as
regional tech and growth names came under renewed selling pressure.
- CSI
300: −1.33%
- Shanghai
Composite (SSE): −1.27%
- Hang
Seng Index (HSI): −3.02%
Key Highlights – China & Hong Kong
1️⃣ Private PMI points to
improving activity
A private survey compiled by S&P Global signalled a modest pickup in
China’s economic activity in January. The RatingDog China General
Services PMI rose to 52.3 in January 2026 from 52.0 in December, its
highest reading in three months and above market expectations of 51.8, driven
by faster growth in new business and a renewed rise in foreign sales. The
associated RatingDog China General Manufacturing PMI increased to 50.3
in January from 50.1, marking a second consecutive month in expansion and
the highest level since October, as export orders and output improved and
hiring reached a three‑month high.
2️⃣ Official data highlight
domestic softness
In contrast, official PMI data from China’s statistics bureau remained closer
to or slightly below the 50 threshold, pointing to a more subdued domestic
backdrop even as export‑oriented private firms show more resilience. This
divergence reflects ongoing challenges in reviving household consumption and
private investment. Economists surveyed by Bloomberg broadly expect the
People’s Bank of China to deliver further monetary easing in 2026 to support
activity.
3️⃣ Hong Kong under pressure
amid tech sell‑off
Hong Kong equities fell in tandem with the global tech sell‑off, with the Hang
Seng Index drifting lower throughout the week. Sentiment stayed cautious:
Eastroc Beverage reportedly raised around HKD 10.1 billion in
its Hong Kong listing and finished its first trading day roughly flat,
suggesting a selective appetite for new issues. In contrast, Baidu outperformed
after unveiling a USD 5 billion share‑buyback programme and a new
dividend policy, underscoring a stronger focus on shareholder returns.
Separately, BYD confirmed plans for a new India‑specific EV model, signalling
an aggressive push to deepen overseas sales despite global trade headwinds.
Selected picks (MSSG):
- CK
Hutchison (1 HK): Divestments progressing despite Panama‑related
headwinds.
- BYD
Co. (1211 HK): Subsidy cliff driving a temporary slowdown but long‑term EV
growth story intact.
- Galaxy
Entertainment (27 HK): Macau January gaming revenue far exceeded
expectations, supporting earnings momentum.
- Pop
Mart (9992 HK): Shares staging a strong recovery in 2026 on improving
consumer and travel‑related demand.
(Refer to the Hang Seng Index
constituents’ weekly performance table below.)
π Weekly charts:
πΈπ¬ Singapore Market –
Weekly Wrap
Market Overview
The Straits Times Index (STI) notched another record this week, rising
about 0.6% to close around 4,934, continuing its
slow‑but‑steady climb higher every week so far this year. The index came within
roughly 20 points of the 5,000 mark at its intra‑week high,
keeping the psychological milestone firmly in sight.
Market Leaders
Outperformers:
- Keppel
Corp (KEP): +6.5% – supported by optimism around energy, infrastructure
and data‑centre‑related earnings.
- Singapore
Airlines (SIA): +5.5% – buoyed by resilient travel demand and firm yields.
- Jardine
Matheson (JMH): +4.0% – benefited from renewed interest in conglomerate
and value names.
Banks:
- DBS:
+0.2% – marginal gain as investors rotated more aggressively into
cyclicals and industrials.
- UOB:
+0.6% – modest outperformance among the local banks.
- OCBC:
Flat – consolidating after prior strength.
(Refer to the STI weekly performance
table below.)
Technical Snapshot – STI
The STI remains in a strong primary uptrend, with prices grinding higher along
rising support as money continues to flow into banks, industrials and blue‑chip
value names. Short‑term momentum is mildly overbought, but shallow intraday
pullbacks have been met with buying interest, keeping the 5,000 level
a realistic upside target in the near term.
π Weekly chart:
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excerpted from publicly available market reports. Please comment to claim
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