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πΊπΈ U.S. Stocks – Weekly
Wrap
Market Overview
For the week ended 27 Feb 2026, U.S.
equities finished lower as mounting concerns over AI-driven disruption risks
and renewed global trade uncertainty kept risk appetite in check. The selling
was broad-based, though the S&P 500 held up relatively better than the Dow.
The Dow Jones Industrial Average (DJI)
led declines, shedding 1.31%, while the S&P 500 (SPX) lost 0.44%. The
Nasdaq Composite (COMP) also ended lower, weighed down by weakness in
technology and semiconductor names after NVIDIA's consensus-beating results
failed to reverse the prevailing risk-off tone.
A widely circulated research report on
AI disruption risks triggered a sharp Monday selloff, setting the tone for the
week. Despite some stabilisation mid-week ahead of NVIDIA's earnings, indexes
ultimately closed lower. The week's silver lining came from U.S. Treasuries,
where the benchmark 10-year yield dipped below 4% for the first time since
November — a signal that bond markets may be pricing in slower growth and
increased odds of Fed rate cuts ahead.
(Refer to the major indices’ weekly
performance tables below.)
Major Indices – Weekly Performance
· Dow Jones: −1.31% – led declines as sentiment
soured on AI disruption fears and trade uncertainty.
· S&P 500: −0.44% – held up best among major
indexes despite the broadly risk-off week.
· Nasdaq Composite: -0.95% – dragged lower by tech and chipmaker weakness despite
NVIDIA's strong earnings print.
(Refer to the major indices’ monthly performance tables for Feb 2026 below.)
Key Highlights for the Week and Outlook
1️⃣ AI disruption fears rattle
markets
Equities sold off Monday after a sell-side report highlighted AI's industry
disruption and white-collar job risks, sparking debate on adoption pace vs. job
creation. History shows tech revolutions (electrification, PCs) bring
short-term pain but long-term productivity and new roles—60% of today's jobs
didn't exist in 1940.
2️⃣ NVIDIA beats but fails to
lift sentiment
NVIDIA reported record revenue and strong AI infrastructure guidance, yet
shares fell ~5% amid scepticism on capex returns. Global AI spending projected
in high hundreds of billions USD for 2026 (up sharply from 2025); no euphoria
suggests no bubble yet.
3️⃣ PPI accelerates unexpectedly
BLS: Jan PPI +0.5% m/m (beat 0.3% est., Dec rev +0.4%), services +0.8% (largest
since Jul 2025); YoY 2.9%. Factory orders fell 0.7% in Dec (aircraft-led),
reinforcing Fed caution on cuts.
4️⃣ Consumer confidence edges
higher; labour market steady
Conference Board: Feb confidence +2.2pts to 91.2 (still below Nov 2024 peak
112.8). Jobless claims 212k (week to 21 Feb); continuing claims 1.833m—low
hiring/firing persists.
5️⃣ 10-year yield breaks below
4%
Risk-off drove Treasury rally; 10-year yield hit ~3.95–3.97% (first sub-4%
since Nov), signaling bond market bets on slower growth or Fed cuts later 2026.
6️⃣ π¨ BREAKING: U.S. and
Israel Launch Major Strikes on Iran — Markets Brace for Turbulent Monday Open
On Saturday 28 Feb, the U.S. and Israel
launched a coordinated joint assault on Iran. What to
watch on Monday:
π’️ Oil — Brent near $73/bbl
Friday; futures expected to surge $5–$7/bbl at open. Key wildcard: Strait of
Hormuz (20% of global supply). A closure could push oil above $100.
πͺ Gold & safe havens — Gold
(up ~22% in 2026, above $5,296/oz) expected to gap higher. Treasuries, yen, and
Swiss franc to rally. OCBC's Christopher Wong: "Gold likely to see an
upside gap, oil to firm on supply-disruption concerns."
π‘️ Defence — LMT, RTX, NOC, BA
positioned to benefit, though gains could reverse quickly if conflict is
contained.
⛽ Energy — XOM, CVX are tactical buys.
Vantage Point CIO Nick Ferres: "Energy is still inexpensive. That's the
obvious sector that rallies on Monday. And gold."
✈️ Airlines — Gulf airspace closures to
weigh on carriers with Middle East exposure, including Singapore Airlines.
S&P 500 Sectors in Focus
Seven of 11 S&P 500 sectors finished
higher
Outperformers:
- Consumer
Staples (XLP) – defensive rotation amid risk-off sentiment.
- Utilities
(XLU) – yield drop and growth fears boosted rate-sensitive defensives.
- Health
Care (XLV) – resilient fundamentals in volatile market.
Laggards:
- Financials
(XLF) – tariff/trade worries weighed on cyclicals.
- Technology
(XLT) – AI capex scepticism and NVIDIA reaction hit semis/tech.
- Consumer
Discretionary (XLY) – risk-off curbed spending‑sensitive
names.
(Refer to the SPX sector ETF weekly
performance table below.)
Technical snapshot – major U.S. indices
- S&P
500 (SPX): Pulled back from recent highs but holds above key near-term
support at 6,800; bulls vs bears standoff, with breakout above 7,000
signalling upside. Narrow 4‑month range masks underlying dispersion.
- Nasdaq
Composite (COMP): Under pressure as tech/AI names test short-term MAs amid
NVIDIA digestion.
- Dow Jones (DJI): Led weekly declines as risk-off rotation weighed on industrials and cyclicals.
π¨π³ China / ππ°
Hong Kong Markets
Market Overview
Mainland Chinese stock markets rose in an abbreviated trading week as risk
sentiment improved, and broader market participation returned following the Chinese
New Year break and ahead of the upcoming “Two Sessions” meetings. Leaders
typically set key economic goals at the annual legislative gathering. The blue chip
benchmark CSI 300 Index advanced 1.08%, and the Shanghai Composite Index(SSE)
rose 1.98%. In Hong Kong, the benchmark Hang Seng Index rose 0.82%.
·
CSI 300: +1.08%
· Shanghai Composite: +1.98%
· Hang Seng Index: +0.82%
Key Highlights – China & Hong Kong
1️⃣ Chinese New Year tourism
rebounds but per-trip spending dips
Travel data over the nine-day Chinese New Year holiday offered mixed signals on
Chinese consumer sentiment. Total tourism spending rose to 803.5 billion yuan
(approximately USD 117.4 billion). However, per-trip spending dipped
marginally, raising questions about the durability of consumption growth.
2️⃣ Shanghai relaxes homebuying
rules
Shanghai eased restrictions: non-residents eligible after 1yr social
security/tax payments (down from 3yr); 3yr contributions now allow second
homes, supporting property stabilisation.
3️⃣ PBOC acts to slow yuan's
rapid appreciation
PBOC cut FX forward risk reserve ratio
to 0% from 20% (eff 2 Mar) to moderate RMB's rapid rise after
hitting near 3-year high vs USD, targeting stable exchange rate.
(Refer to the Hang Seng Index
constituents’ weekly performance table below.)
πΈπ¬ Singapore Market –
Weekly Wrap
Market Overview
The Straits Times Index (STI) snapped its nine-week winning streak, recording
its first weekly loss of 2026 for the week ended 27 Feb. The index closed at
4,995.07, shedding 0.45% for the week and finishing just a few points below the
psychologically important 5,000 level. The retreat came after the STI posted a
fresh intra-week all-time high of 5,041.33 on Monday 23 Feb, suggesting
near-term exhaustion after a powerful and extended run.
The week's softness was led by the three
banking heavyweights — DBS, UOB, and OCBC — which collectively weigh around 50%
of the index. All three reported strong FY2025 results, yet share prices
declined as investors pivoted from backward-looking record profits to forward
concerns over narrowing net interest margins and the prospect of rate cuts — a
classic "sell on results" dynamic.
Market Leaders
Outperformers:
- YZJ
Shipbuilding (BS6): +16.35% – the standout performer
of the week, surging on stellar FY2025 results announced on 25–26 Feb. Net
profit rose 30.2% year-on-year to a record RMB 8.6 billion on revenue of
RMB 28.5 billion. The group maintained a 35% shipbuilding margin, declared
a higher-than-expected 50% dividend payout (5.5% yield). CGS International
raised its target price to S$4.95, reiterating 'Add'.
- Seatrium
(5E2): +11.11% - surged after FY2025 net
profit doubled to S$323.6 million, driven by margin expansion and stronger
oil and gas and offshore-wind revenue. The group raised its final dividend
to S$0.03 and continued its share buyback programme.
- JMH
USD (J36): +5.43% – outperformed ahead of
its full-year results due 5 Mar, reflecting broad value rotation and
pre-results positioning. The Asia-focused conglomerate has staged a sharp
recovery, rising nearly 93% over the past twelve months.
Banks:
- DBS
(D05): -1.50% – despite record FY2025 results, shares retreated as
management guided for 2026 net profit to edge lower amid NIM headwinds.
The April 8 ex-dividend date remains a near-term anchor for yield
investors.
- UOB
(U11): -4.22% – the steepest weekly decline among the local banks, with
the market focused on NIM compression guidance of 1.75%–1.80% for 2026 and
softening net interest income prospects.
- OCBC
(O39): -1.34% – a modest pullback post-FY2025 results despite strong
wealth management fee income and the full consolidation of Great Eastern.
The bank reiterated its two-year S$2.5 billion capital-return plan.
(Refer to the STI weekly performance
table below.)
The STI remains in a strong primary uptrend, but the first weekly decline of
2026 is a near-term yellow flag after nine consecutive weeks of gains. The
"failed breakout" at the 5,041.33 all-time high before closing back
below 5,000 warrants attention. Short-term indicators are rolling over from
overbought conditions, suggesting further consolidation before the next leg
higher. Key near-term support lies in the 4,950–5,000 zone. The primary uptrend
remains intact — the index is still up over 7% year-to-date — and pullbacks
should attract buyers in quality banks, industrials, and defensive yield plays.
π Weekly chart:
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