Last Week's Recap
The US Market - U.S. markets rallied to record highs
U.S. stock markets ended the week at robust highs, driven by a tech-led rally, broad sector strength, a dovish Federal Reserve tone, and signs of de-escalation in Middle East tensions.
The S&P 500 notched fresh record highs on Friday, marking its fastest-ever rebound from a 15%+ decline, according to Dow Jones Market Data. The index has gained over 20% since its April 8 low and is now up nearly 5% year-to-date.
Fed Chair Jerome Powell, during his semiannual testimony, said that recent economic data might have already justified rate cuts, if it were not for the potential inflationary effects of tariffs. Markets are now pricing in in three or four quarter-point increments by December.
Despite rising oil prices linked to renewed Israel-Iran tensions and higher bond yields amid fiscal concerns, investors remained bullish. AI optimism continued to fuel a powerful comeback across growth-oriented sectors.
The US Sectors & Stocks - AI momentum drove tech gains
AI-led gains propelled the technology and communication services sectors to the top of the S&P 500 last week, with standouts including Nvidia (NVDA), AMD, Alphabet (GOOGL), and Meta Platforms (META). Nvidia and Microsoft (MSFT) both closed at all-time highs on Friday, underscoring investor enthusiasm around AI infrastructure and software.
The energy sector lagged, as crude oil prices declined sharply. Iran's measured response to recent escalations eased concerns of broader conflict or disruptions to Middle East oil flows, dragging oil-related equities lower.
Coinbase (COIN) continued its stellar run, rallying another 14.6% for the week. The stock is on track to be the top performer in the S&P 500 for June, buoyed by the Senate’s passage of the GENIUS Act, which aims to regulate stablecoins. On Thursday, Coinbase reclaimed price levels not seen since its 2021 IPO.
Tesla (TSLA) spiked more than 8% on Monday following the launch of its robotaxi service in Austin. However, the stock ended the week flat after users reported several operational issues, including erratic braking and lane deviations, raising questions about the system's readiness.
Core Scientific (CORZ) shares surged 33% on Thursday after The Wall Street Journal reported that CoreWeave was in talks to acquire the digital-infrastructure company. CoreWeave tried unsuccessfully last year to buy Core Scientific.
Circle (CRCL) tumbled 25%, giving back some of its massive post-IPO gains. The issuer of USDC stablecoin faced investor concerns over valuation after a rapid run-up.
AMD (AMD) jumped 12.1%, buoyed by bullish sentiment around its Helios server rack system, which ties together thousands of GPUs. Piper Sandler also projected a fourth-quarter rebound in AMD’s GPU business.
Nike (NKE) soared 20.5% after reporting better-than-expected Q4 earnings, and guiding for a smaller-than-feared revenue decline in Q1, suggesting an improving sales trajectory.
Arista Networks (ANET) rose 15.2% after an analyst upgrade, citing the company’s dominant position in cloud and data center networking and strong long-term growth prospects.
QuantumScape (QS) experienced a remarkable 54.3% increase last week, closing at $6.62, following the successful integration of its advanced Cobra separator process into baseline cell production.
Hong Kong Market - HSI rose 3.2%
Hong Kong stocks posted the biggest weekly gain in almost four months after China and the US clinched a tentative agreement on export tariffs, while traders stepped up bets on US interest rate cuts as oil prices slumped. The Hang Seng Index (HSI) rose 3.2% for the week, the most since the first week of March.
Xiaomi (1810.HK) surged 9.1% this week, hitting a record high after the launch of its first electric SUV, YU7, which received overwhelming pre-orders.
Guotai Junan International (1788.HK) skyrocketed 167.3% this week after receiving approval to offer virtual asset trading services, marking a significant milestone in its business transformation.
Singapore Market - STI increased 2.1%
The Straits Times Index (STI) experienced a 2.1% increase this week, closing at 3966.2. The surge was driven by the easing of Middle Eastern hostilities and a 0.6% rise in Singapore's key consumer price gauge in May compared to the previous year.
Singapore's annual core inflation rate rose 0.6% in May from a year earlier, matching forecasts by economists. Headline inflation was 0.8% in annual terms in May, also matching the median poll forecast of 0.8%.
Singapore plans to build at least 80,000 public and private homes over the next 10 to 15 years, as part of the government’s latest effort to meet rising demand for affordable housing.
Australian Market - ASX closed flat
The Australian stock market closed largely flat, with the S&P/ASX 200 Index (XJO) edging up 0.1% for the week. Investor sentiment was shaped by strategic investments and divestments from major institutions, notably Vanguard Group, signaling its active positioning in Australian equities.
Bellevue Gold Limited (BGL.AU) gained 6.4%, buoyed by news that Vanguard had acquired a significant stake in the company. The move was seen as a vote of confidence in Bellevue’s long-term growth prospects and resource potential.
Macquarie Group Limited (MQG.AU) also posted a strong week, with shares rising 5.4%, supported by positive sentiment around its diversified business model and growing investor appetite for financial sector leaders.
The Week Ahead
Macro Factors - Jobs data, tariff watch & July seasonality
Supporting a sustained rally, the market is also entering a historically strong month. Investors will closely monitor developments on President Trump’s tariff pause, with a self-imposed deadline for potential tariff decisions looming on July 9. Any updates could stir market sentiment, particularly amid rising trade-related uncertainties.
The June U.S. jobs report, set to be released Thursday (one day early) due to the Independence Day holiday, will headline the week. While job growth has moderated in recent months, Fed Chair Jerome Powell has reiterated that the labor market remains solid, fueling optimism about potential rate cuts in the coming months.
Markets will close at 1 p.m. on Thursday and remain shut on Friday for the Fourth of July.
Beyond nonfarm payrolls, investors will also assess job openings, wage data, and updates on manufacturing and services activity, offering more insight into the broader economic outlook.
Historically, seasonality favors a bullish start to July. According to Goldman Sachs, the first 15 trading days of July have been the best two-week period of the year since 1928, as noted by managing director Scott Rubner.
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