U.S. Stocks Fall, Mag Techs Underperform

Join SgTraderClub Facebook group HERE for daily stocks and market updates, and more.

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 Feb 28, most U.S. stock indexes declined for the second consecutive week, although the Dow Jones Industrial Average(DJI) finished 0.95% higher, adding to its year-to-date outperformance versus the other major indexes. Growth stocks significantly underperformed, and the Nasdaq Composite(COMP) recorded its worst weekly drop since early September as tech stocks, particularly the so-called Magnificent Seven(Mag 7), declined amid ongoing regulatory uncertainty and concerns that the multiyear artificial intelligence-fueled rally could be losing steam (shares of NVIDIA fell 8.48% on Thursday following the chipmaker’s highly anticipated earnings report). Tariff fears also continued to be a drag on equities as Donald Trump reiterated plans to impose new levies on several trade partners by March 4.

Refer to below major indexes performance table for the week and monthly performance for Feb.

Monthly major indexes performance for the month of Feb.

Key highlights for the week and next:

1.    Inflation weighs on consumer confidence. Core personal consumption expenditures (PCE) price index data on Friday showed prices rising by 0.3% in January, largely in line with expectations. On a year-over-year basis, prices rose 2.6%, in line with estimates and lower than the prior month of 2.8%, but still above the Fed’s long-term target of 2%. The report also noted that while personal incomes rose 0.9% in January, spending contracted, a sign that consumers may be exercising caution in the face of persistent inflation and uncertainty. 

2.    GDP growth in the Q4 of 2024 at annualized rate of 2.3%, in line with estimates. For full year, U.S GDP increased 2.8%. 

3.    Policy uncertainty. Trump said Canada and Mexico tariffs are on track to go into effect on March 4, along with an additional 10% tax on Chinese imports. He also proposed new tariffs on the European Union and reiterated that reciprocal tariffs are set for April 2. The elevated trade-policy uncertainty is starting to weigh on sentiment, and, if it persists, may prompt businesses to defer or cancel investments, and prompt consumers to pull back on spending. 

4.    Corporate earnings. With about 95% of the S&P 500 companies having reported results, the Q4 earnings season is largely over. Profits grew 18% from a year ago, the highest quarterly earnings increase in three years. And full-year 2025 estimates are pointing to double-digit growth, which provides a buffer for equities against any moderate decline in valuations that may take place this year. 

SPX sectors in play

Seven out of the 11 SPX sectors recorded weekly gain. Last week, the SPX briefly fell below last year's closing price, erasing the year-to-date gains, and dropping 4.5% from its all-time high reached on February 19. Over the past two years, the Magnificent 7 have driven more than 50% of the index's gains. However, this year, the group has shifted from a leader to a laggard, entering correction territory, while the broader index has remained rangebound over the past three months. Growth stocks significantly underperformed, and the Nasdaq Composite recorded its worst weekly drop since early September. Financials (XLF) and Health Care(XLV) sectors were among top performers while Technology( XLK) lagged. Refer to below SPX sectors ETF weekly performance table.

Indexes technical levels

Both SPX and COMP indexes recorded two-week decline streak, while DJI rebounded after from previous week’s decline. COMP closed new low since Nov 2024 led by the big techs. Click below three indexes for their weekly charts.

DJI weekly chart

SPX weekly chart

Nasdaq weekly chart

China/HK

China stock markets fell for the week after the U.S. ratcheted up measures targeting China’s economy. The Shanghai Composite Index(SSE) slid 1.72% while the blue chip CSI 300 declined 2.22%. In Hong Kong, the benchmark Hang Seng Index down 2.29%. (refer to the above weekly performance table).

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

1.    Most of the week’s declines occurred on Friday, a day after President Trump announced an additional 10% levy on Chinese imports effective March 4, along with 25% tariffs on Canada and Mexico. The Trump administration previously imposed a 10% tariff on all Chinese products that went into effect February 4. In response, China will “counter with all necessary measures to defend its legitimate rights and interests,” a Ministry of Commerce spokesperson said. 

2.    The latest tariff threat came days after the Trump administration issued a memo instructing the Committee on Foreign Investment in the U.S. (CFIUS) to curb Chinese spending on strategic sectors like technology and energy. The U.S. also plans to tighten restrictions on U.S. semiconductor technology exports to China and to lean on Japan and the Netherlands to step up their restrictions on China’s chip industry, Bloomberg reported, citing unnamed officials. While the move to restrict U.S. tech exports to China appears to be a continuation of policies under the Biden administration, many analysts viewed the order to CFIUS—a committee that reviews proposed investments by foreign entities for national security threats—as further evidence of a decoupling between the world’s two largest economies. 

3.    Looking ahead, many investors are eyeing China’s Two Sessions, an annual political event in which Beijing unveils its economic priorities and targets for the coming year. China will likely maintain a gross domestic product growth target of “around 5%” for the third straight year, according to the Asia Society Policy Institute. Analysts also expect China to reveal a fiscal deficit ratio of 4% of GDP—a record high target—and a consumer inflation target of around 2%, down from the previous year’s 3%, reflecting deflationary pressures on the economy. The Two Sessions, which refer to the concurrent meetings of the Chinese People’s Political Consultative Conference and the National People’s Congress, begin March 4 and 5, respectively, and are expected to end on or around March 11.

Refer to below .HSI stocks top 40 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) slid 0.87% to close at 3895.7 for the week, it hit record of 3951.64 level on Monday and traded lower for the rest of the week. The index recorded four-week winning streak before posting its first weekly loss, but its uptrend remains intact.

Weekly top index gainer was ST engineering with 6.29% up and biggest loser was YZJ Ship with 26% decline, due to the potential impact of proposed U.S tariff on China built ships.

Refer to below STI stocks weekly performance table.

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.

U.S. Stocks Fall, Services PMI Down to Contraction

Join SgTraderClub Facebook group HERE for daily stocks and market updates, and more.

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 Feb 21, major stock indexes declined as sharp losses in the latter half of the week erased the early gains and led to the major indexes finishing lower. Many of the week’s headlines centered around geopolitics and tariff news amid Trump’s efforts to end the Russia-Ukraine conflict as well as Trump’s announcement of his intent to impose additional tariffs on automobiles, pharmaceuticals, and lumber products, although details of the planned tariffs remained limited.

S&P Global reported its latest services PMI reading at 49.7- lowest over two years. Michigan Consumer Sentiment for Feb dropped nearly 10% MoM to 64.7 while inflation expectations for the year ahead also jumped to 4.3% from 3.3% in January. Refer to below major indexes performance table for the week.

Key highlights for the week and next:

1.    Tariff fears and cost pressures drive worsening sentiment. January housing starts declined nearly 10% from December. The report cited uncertainty around tariffs, elevated mortgage rates, and high housing costs as factors driving the overall decline in sentiment. 

2.    S&P Global reported that U.S. Business PMI came in at a 17-month low of 50.4, Services PMI reading dropped to its lowest in over two years (49.7), which partially offset growth in the manufacturing sector. 

3.    Consumer sentiment hit new low. University of Michigan reported its Index of Consumer Sentiment for February dropped nearly 10% month over month to 64.7, “in large part due to fears that tariff-induced price increases are imminent,” Inflation expectations for the year ahead also jumped to 4.3%, up from 3.3% in January. 

4.    Sentiment turned to sour after Walmart(WMT) issued lower guidance for the year ahead, which seemed to drive broader investor concerns regarding consumer spending and the health of the overall economy. 

5.    Important Event to watch coming week: Personal consumption expenditures (PCE) inflation data on Friday Feb 28, which is often considered the Fed's preferred inflation gauge, and the expectation is for the headline inflation rate to moderate from 2.6% to 2.5%. 

SPX sectors in play

Five of the 11 SPX sectors recorded weekly gain. Defensive sectors outperformed Consumer Staples( XLP) and Utilities(XLU) were among the top gainers, while Technology(XLK), Communication Services(XLC) and Consumer Discretionary(XLY) lagged. Refer to below SPX sectors ETF weekly performance table.

Indexes technical levels

Both SPX and COMP indexes declined to their two-week lows while DJI dropped to its five-week low. All three indexes weekly uptrend still intact. Click below three indexes for their weekly charts.

DJI weekly chart

SPX weekly chart

Nasdaq weekly chart

China/HK

China stock markets rose, lifted by strength in technology shares following better-than-expected earnings from some of the country’s leading tech companies. The Shanghai Composite Index(SSE) added 0.97% while the blue chip CSI 300 gained 1.0%. In Hong Kong, the benchmark Hang Seng Index advanced 3.79%, driven by a rally in Alibaba shares after China’s leading e-commerce and cloud computing company reported faster-than-projected sales growth in the December quarter. (refer to the above weekly performance table).

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

1.    The surprisingly strong results from Alibaba and other Chinese tech companies came after local artificial intelligence startup DeepSeek showed off its technological capabilities in January, which renewed investor interest in the country’s internet sector. Sentiment was also buoyed after a high-profile meeting between President Xi Jinping and several Chinese tech entrepreneurs signaled that the government was adopting a more supportive stance toward private sector companies. Photos from the February 17 meeting—which were widely disseminated in state media—showed Xi meeting with Alibaba founder Jack Ma and the heads of other leading tech companies. 

2.    The appearance of Ma, once seen as the poster boy for China’s booming tech industry, was significant after Beijing abruptly canceled the initial public offering for Alibaba affiliate Ant Group in 2020, an incident that marked the start of a yearslong crackdown on China’s tech sector and other industries. However, a looming trade war with the U.S. has underscored the importance of the private sector as a growth engine for China, whose economy is already under strain amid a persistent property slump and weak domestic demand.

Refer to below .HSI stocks top 40 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) gained 1.35% to close at 3929.94 for the week, after hitting record high of 3949.65 points on Wednesday. Sembcorp Ind was the top gainer of the week with 6.28% up. MAS released new set of measures to strength Singapore’s equities market after Friday market close- Analyst viewed as a “shot in the arm” new family offices may contribute $15 billion to local bourse this year and SGX Group a key beneficiary. 

Refer to below STI stocks weekly performance table.

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.

U.S. Indexes Climb Toward Record Highs

Join SgTraderClub Facebook group HERE for daily stocks and market updates, and more.

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 Feb 14, major stock indexes finished higher with the Nasdaq Composite(COMP) leading the way, gaining 2.58% during the week. As measured by Russell indexes, growth stocks outperformed value shares for the second week this year. The S&P 500 Index(SPX) and Nasdaq Composite(COMP) both closed the week within 1% of all-time highs. Stocks had their best day of the week on Thursday, largely in response to Trump’s decision to not introduce new global tariffs, instead signing an order that—following further study—could lead to the implementation of reciprocal tariffs on a country-by-country basis by April 1. Refer to below major indexes performance table for the week.

Key highlights for the week and next:

1.    Higher inflation. The January consumer price index (CPI) came in hotter than expected, rising 0.5% from the prior month and 3% from a year ago, the strongest annual change since June. Core inflation ticked higher to 3.3% from 3.2%. Core inflation has been stuck around 3.3% for the past eight months, certainly higher than the Fed would like it to be. Offering a glimmer of hope is that rent inflation rose modestly last month. 

2.    Higher-for-longer interest rate expectations. At his semiannual testimony to the U.S. Senate, Powell reiterated that the Fed can be patient in cutting interest rates and that there is more work to do on inflation. Fed is comfortable keeping policy unchanged, but rate hikes are unlikely.

3.    Magnificent 7 stocks had their worst earnings season since 2022. The Magnificent 7 group of companies (Apple, Microsoft, Amazon, Alphabet, Meta, NVIDIA, and Tesla) that comprise about a third of the S&P 500 weight has lost some of its luster so far this year. Their performance is lagging in 2025, while sales growth in the fourth quarter of 2024 was at its slowest since 2022. Increasing competition in the artificial intelligence (AI) arena and rising spending are raising concerns about valuations, which carry a 35% premium to the broader index. 

4.    International stocks such as the Stoxx 600 and Hang Seng Index both outperforming the SPX so far this year. 

SPX sectors in play

Nine of the 11 SPX sectors recorded weekly gain. Growth stocks outperformed value shares, Technology(XLK) and Communication Services(XLC) led the gains while Health Care(XLV) and Financials(XLF) lagged. Refer to below SPX sectors ETF weekly performance table.

Indexes technical levels

All three indexes still been in sideway rangebound within its four-week trading range. The S&P 500 Index(SPX) and Nasdaq Composite(COMP) both closed the week within 1% of all-time highs. Uptrend intact well on their weekly charts. Click below three indexes for their weekly charts.

DJI weekly chart

SPX weekly chart

Nasdaq weekly chart

China/HK

China stock markets rose, lifted by hopes that U.S. tariffs on Chinese imports may prove to be milder than expected following the Trump administration’s decision to impose a 10% tariff on the country’s products in early February. The Shanghai Composite Index(SSE) added 1.3% while the blue chip CSI 300 gained 1.19%. In Hong Kong, the benchmark Hang Seng Index surged 7.04%, its best weekly performance in four months, driven by strength in tech shares as investors bought up artificial intelligence names. (refer to the above weekly performance table).

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

1.    China’s consumer price index rose a higher-than-expected 0.5% in January from a year ago, accelerating from December’s 0.1% rise, according to the country’s statistics bureau. January’s increase marked the first pickup in consumer inflation since August and was likely driven by a spending surge ahead of the eight-day CNY holiday. However, the producer price index fell 2.3% in January, unchanged from December’s reading and marking the 28th consecutive month of factory deflation. Stamping out deflation is a matter of growing urgency for Beijing, which unleashed a slew of monetary and fiscal stimulus last September to bolster demand. But a yearslong housing slump has prompted people to save rather than spend, frustrating officials’ attempts to boost consumer spending. 

2.    Moody’s lowered its credit rating for troubled real estate company China Vanke for the second time this year, deeper into junk territory, citing its weakening financial performance. Moody’s latest action raised the possibility of default for Vanke, a state-backed developer that was once considered too big to fail. China’s government is working on a plan to help Vanke plug a funding gap of about USD 6.8 billion this year, Bloomberg reported Wednesday, citing unnamed officials. Despite falling short of a full bailout, the reported plan suggested that the government would not allow Vanke to suffer the same fate as China Evergrande, whose 2021 default and subsequent liquidation flagged the severity of the country’s housing downturn. 

Refer to below .HSI stocks top 40 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) edged up 0.42% for the week, after hitting record high of 3921.30 points on Monday but losing the momentum and drifting to sideway for the rest of the week. Seatrium was the top performer with a stunning 19.4% weekly gains, while SGX tumbled 9.3%. Refer to below STI stocks weekly performance table.

Click below for STI weekly chart.

STI weekly chart

Source: Some contents and data excerpted from various public market reports.

U.S. Stocks Lower Amid Tariff Uncertainty, Chinese Stocks Rally Led by Tech and EV Players

 Join SgTraderClub Facebook group HERE for daily stocks and market updates, and more.

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 Feb 7, major stock indexes declined during the week, although the S&P 500 Index(SPX) held up best, falling just 0.24%. Stocks opened sharply lower to start the week in response to the prior Friday’s announcement from Trump stating that the U.S. would be implementing 25% tariffs on imports from Mexico and Canada, along with 10% levies on Chinese imports, as of February 1. However, by the end of the day Monday, Trump had agreed to postpone tariffs on Mexico and Canada for 30 days, which provided some relief and seemed to help stocks recover some of their early losses by the end of the week. Refer to below major indexes performance table for the week.

Key highlights for the week and next:

1.    U.S. manufacturing PMI expanded in January for the first time in 27 months. Services PMI for January declined from December, although the reading remained in expansion territory at 52.8. ISM Manufacturing Business Survey Chair Timothy Fiore noted that potential tariffs represent a “huge threat” to a sustained recovery in the U.S. manufacturing sector. 

2.    Earnings Report: data shows 77% of S&P 500 Index companies that have reported fourth-quarter results through Friday have posted consensus-topping earnings, with an average growth rate of 16.4% (compared with estimates for 11.9% earnings growth). Of the companies that have reported thus far, 63% have also surpassed sales expectations.

3.    US Jobs gradual cooling. Nonfarm payrolls reported 143k jobs were added in January, down from December. The unemployment rate also declined unexpectedly, to 4.0% from 4.1% in the prior month.

SPX sectors in play

Seven out of the 11 SPX sectors recorded weekly gain. Energy(XLE) and Technology(XLK) were among top gainers while consumer Discretionary(XLY) lagged as Amazon(AMZN) dropped 4.05% after its releasing its earnings. Refer to below SPX sectors ETF weekly performance table.

Indexes technical levels

All three indexes have been in sideway rangebound within its four-week trading range. Uptrend still intact well on their weekly charts. Click below three indexes for their weekly charts.

DJI weekly chart

SPX weekly chart

Nasdaq weekly chart

China/HK

China stock markets rose in an abbreviated trading week as evidence of strong consumer spending over the Chinese New Year holiday offset Trump’s decision to slap a 10% tariff on Chinese imports. The Shanghai Composite Index(SSE) added 1.63% while the blue chip CSI 300 gained 1.98% in the shortened trading week. In Hong Kong, the benchmark Hang Seng Index advanced 4.49%, its best weekly performance in four months, driven by gains in technology companies. (refer to the above weekly performance table).

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

1.    Travel and retail spending over the Chinese New Year holiday, a key consumption period for China, pointed to improved domestic demand. Box office receipts over the eight-day holiday jumped 18% to USD 1.3 billion over last year’s holiday, Bloomberg reported, citing data from ticketing site Maoyan. The number of domestic trips rose to a record 501 million during the holiday, up 5.9% from last year, while spending on domestic trips rose 7% to the equivalent of USD 94.4 billion, according to China’s Ministry of Culture and Tourism.

2.    Despite the solid holiday sales data, other readings signaled weakness in the broader economy. The Caixin China General Services Purchasing Managers’ Index (PMI) slipped to 51 in January, down from 52.2 in December. Though the PMI reading surpassed the 50 level that separates growth from contraction, it revealed that the pace of expansion in business activity and new orders both slowed to their lowest rates in four months, according to an economist at Caixin. Earlier in the week, Caixin reported that its manufacturing PMI slowed to 50.1 in January, down from December’s 50.5 reading and missing economists’ forecasts. The readings from Caixin, a private survey, came a week after China’s official manufacturing PMI unexpectedly contracted in January.

Click below SSE and .HSI indexes for their weekly charts. 

SSE weekly chart

.HSI weekly chart

Singapore

The Straits Times Index (STI) edged up 0.15% for the week after fully recovering from early losses in the week. SGX stock price was a standout with 14% surge to close at 13.99, hitting 17 year high, after it released record first-half revenue and net profit for 1HFY2025 ended Dec 31, 2024. Refer to below STI stocks weekly performance table.

Click below for STI weekly chart.

STI weekly chart

Source: Some contents and data excerpted from various public market reports.