Last Week's Recap
The US Market - The Nasdaq closed at record as Apple shares rallied
U.S. stocks staged a strong rebound last week despite mixed sector performances and notable intraday volatility. The Nasdaq led the charge, closing at a record high on Friday, boosted by Apple’s rally. The S&P 500 and the Dow also ended the week higher.
Apple’s surge lifted both the Nasdaq and the S&P 500’s tech sector. Shares of the iPhone maker jumped 13% after the company unveiled a new $100 billion commitment to America, a significant acceleration of its U.S. investment that now totals $600 billion over the next four years. For the week, the S&P 500 gained 2.4%, while the Nasdaq advanced 3.9%.
Trump announced a 100% tariff on imported semiconductors and chips, with exemptions for companies manufacturing within the United States. Semiconductor stocks rose broadly, especially positive for Micron, and TSMC, which is expanding its chip factories in Arizona.
Gold futures set a new record high of $3,534.10 on Friday. A Swiss trade group warned that U.S. tariffs on gold bars “may negatively impact the international flow” of the metal. Switzerland is the largest refiner of gold in the world. The VanEck Gold Miners ETF (GDX) rose to a new multi-year high back to December 2011.
The US Sectors & Stocks - Earnings Surprised
All S&P 500 sectors ended the week higher, except Energy. Basic Materials jumped 5%, boosted by gains in Albemarle (ALB) and gold miner Newmont (NEM).
Technology and Communication Services each advanced more than 3.5%, supported by strong AI-related momentum and solid earnings results.
Apple (AAPL) surged over 13%—its best week since 2020—after securing an exemption from U.S. tariffs by unveiling a massive domestic investment plan.
Palantir (PLTR) rallied 21% after Q2 revenue soared 48% to over $1 billion, driven by the “astonishing impact” of AI. The company raised full-year guidance to $4.14–$4.15 billion, well above analysts’ $3.91 billion forecast.
Eli Lilly (LLY) tumbled nearly 18% to a 52-week low after disappointing weight-loss drug trial data overshadowed strong Q2 results, while rival Novo Nordisk (NVO) gained 6%.
Intel (INTC) fell after Trump called for the CEO’s resignation, accusing him of being “highly CONFLICTED.” The chief executive refuted “misinformation” in an internal memo, stressing adherence to legal and ethical standards.
Shopify (SHOP) soared 26% on earnings that beat expectations—Q2 profit rose 34%, revenue climbed 31% to $2.68 billion, and gross merchandise volume jumped 30% to $87.84 billion. Guidance was also raised slightly.
AppLovin (APP) gained 20% despite a Q2 revenue miss, as upbeat Q3 guidance and strong EPS boosted sentiment.
The Trade Desk (TTD) plunged 37% after flagging slower growth ahead, with CEO Jeff Green warning Q3 revenue expansion could decelerate.
Hims & Hers Health (HIMS) slid 17% after missing revenue estimates in Q2, despite topping adjusted EBITDA expectations.
Duolingo (DUOL) climbed 9.3% after strong Q2 results, fueled by AI-driven subscription growth and a higher annual revenue outlook.
Arista Networks (ANET) jumped 18% following record Q2 revenue of $2.2 billion, up 30.4% year over year, beating Wall Street forecasts.
Super Micro Computer (SMCI) sank 21.3% after missing fiscal Q4 estimates and issuing weaker guidance. Earnings fell 24% from a year earlier, while sales rose just 8%.
Expedia (EXPE) rose 9% for the week, as the online travel agency raised its full-year outlook on the back of second-quarter earnings that beat expectations.
Hong Kong Market - HSI gained 1.43%, Tencent reached a 4-year high
The Hang Seng Index (HSI) gained 1.43% for the week, closing at 24,858.82. Technology and consumer stocks advanced, while healthcare lagged. Anticipation of corporate earnings and lingering geopolitical tensions added to market volatility.
Tencent Holdings (0700.HK) climbed 4.86% to a near four-year high, boosted by an upbeat Morgan Stanley rating and excitement over the upcoming launch of its new mobile game, Valorant.
Cathay Pacific (0293.HK) slumped more than 10%—its steepest one-day drop since 2008—after reporting just a 1% profit increase, lower yields, and ongoing issues at its low-cost carrier.
XD Inc (2400.HK) surged 36.17% after issuing a profit alert forecasting a 215% jump in interim net profit. Strong financial guidance and new product rollouts fueled investor optimism.
Pop Mart (9992.HK) rallied 14.31% to a record high, driven by robust demand for its intellectual properties and upbeat sentiment toward its overseas expansion strategy.
Singapore Market - STI rose 2.1%
The Straits Times Index (STI) advanced 2.1% for the week, finishing at 4,239.83, lifted by upbeat earnings and corporate developments despite sectoral headwinds.
OCBC (SGX: O39) gained 2.5% as strength in wealth management and investment banking offset concerns over potential Fed rate cuts squeezing net interest margins.
Singapore Land (SGX: U06) surged 15% after reporting a 7% rise in first-half net attributable profit to SG$111.4 million.
Yangzijiang Shipbuilding (SGX: BS6) jumped 13% on record first-half FY2025 results, with a notable expansion in net profit margins.
Australian Market - ASX continued to climb
The ASX 200 Index (XJO) added 1.7% to close at 8,807.1, supported by gold strength and select earnings beats, though mixed economic data tempered sentiment.
Gold miners and materials stocks outperformed as gold prices broke above US$3,400 an ounce.
ASX Ltd fell 7.6% to A$64.55 despite reporting A$7.7 billion in total new capital quoted in July. Average daily futures volume slipped 5% during the month, while total cash market value reached A$164.5 billion.
The Week Ahead
Macro Factors - CPI in focus
Investors will closely watch U.S. inflation data this week, with the Consumer Price Index (CPI) due Tuesday and the Producer Price Index (PPI) on Thursday. Markets are pricing in multiple Fed rate cuts this year, but hotter-than-expected inflation could challenge a stock market trading near record highs.
Economists expect July headline CPI to rise 2.8% year-over-year, up from 2.7% in June. Core CPI, which excludes food and energy, is forecast at 3.0% versus 2.9% the prior month, with a 0.3% monthly increase following June’s 0.2%.
July PPI is expected to climb 2.5% year-over-year, up from 2.3% in June, while core PPI is seen at 2.9%, compared with 2.6% previously.
The inflation data comes ahead of the Fed’s Jackson Hole symposium (Aug. 21–23), which could shape expectations for the September meeting, where the first rate cut since December is projected.
On Friday, July retail sales will offer fresh insight into consumer spending, with economists forecasting a 0.5% monthly gain, slightly below June’s 0.6% rise.
Geopolitical headlines may also drive sentiment, including reports that former President Trump and Russian President Vladimir Putin could meet as early as this week, as the U.S. seeks to ramp up pressure to end the war in Ukraine.
Other potential catalysts include the August 12 trade deadline for China, but many expect that the date will be postponed.
Earnings
Earnings season is finally winding down, quarterly reports from S&P 500 companies will slow, with just eight expected to report. Quarterly updates from Cava (CAVA), Cisco (CSCO), and Deere & Company (DE) will headline the week of releases. Circle (CRCL) will release its first earnings result after its IPO.
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