Last Week's Recap
U.S. Market - Stalled at Record Highs
Indexes: Stocks started the week at record highs, fueled by optimism over the Nvidia–OpenAI deal. But that early strength faded as the week wore on, leaving the S&P 500 down 0.31% and the Nasdaq off 0.65%, snapping a three-week winning streak.
Inflation: August’s PCE inflation reading landed right on expectations (headline +2.7% y/y; core +2.9%), reinforcing the picture of inflation that’s sticky but not accelerating—enough to keep the Fed on its toes, but not enough to derail easing expectations.
Powell Speech: Powell (Sept. 23) doubled down on a data-dependent approach. His remarks on economic challenges and stock valuations added to market volatility.
Tariffs: President Trump announced new tariffs, including 100% duties on patented drugs and 25% on heavy trucks. The surprise announcement unsettled markets that had grown accustomed to relative trade calm.
U.S. Sectors & Stocks — Intel extended its rally
Sectors: Energy (+3.9%) and Utilities (+2.3%) led gains, supported by rising oil prices and yield shifts, while Communication Services (−2.4%), Healthcare (−1.1%), and Consumer Defensive (−1.0%) lagged on rotation. Energy stocks rallied on geopolitical supply concerns, while Industrials saw selective strength—Paccar (PCAR) jumped after new heavy-truck tariffs boosted sentiment for domestic manufacturers.
Intel (INTC): Surged another 15% as WSJ reported Intel is seeking strategic investments from Apple, TSMC, and others, fueling optimism about its turnaround plans.
Nvidia (NVDA): Gained 0.9%. The AI giant announced a $100 billion investment in OpenAI to support 10 GW of Nvidia-powered data centers. Supporters see potential $300–$500 billion in future revenue; skeptics view it as circular vendor financing.
Apple (AAPL): Rose 4% after Evercore’s consumer survey signaled a stronger-than-expected iPhone refresh cycle, particularly for high-end models.
Oracle (ORCL): Fell 8%, driven by a $15 billion bond issuance plan, despite Oracle's Larry Ellison would be involved in Tiktok deal.
Micron (MU): Pulled back modestly amid a broader AI chip retreat despite strong FY25 Q4 results (EPS +109% YoY; revenue +44% to $12.5 B).
Costco (COST): Dropped 3.7% to a 5-month low after same-store sales missed for a second straight quarter, despite its overall earnings and revenue both beat the expectations. Analysts cut price targets despite solid headline earnings.
Electronic Arts (EA): Spiked 15% on reports it’s nearing a ~$50 billion take-private deal led by Silver Lake and Saudi Arabia’s PIF.
Lithium Americas (LAC): Soared 120% to early-2024 highs after reports President Trump is seeking a 10% stake as part of renegotiations on its $2.26 B DOE loan for Thacker Pass.
Hong Kong Market - HSI Slipped 1.6% on Trade Headwinds
The Hang Seng Index(HSI): fell 1.6% over the week, snapping its monthly winning streak. A mix of local market dynamics and renewed U.S. tariff concerns weighed on sentiment.
Xiaomi (1810.HK): Slid 3.6% despite launching its new Mi 17 series, as investors remained cautious over the company’s EV ambitions and intensifying market competition.
BYD (1211.HK): Dropped 6.2%, pressured by uncertainty surrounding its strategic direction after Berkshire Hathaway’s continued stake reduction.
Alibaba (9988.HK): Bucked the trend: shares surged to their highest level since October 2021 after CEO Eddie Wu pledged to exceed the firm’s $53 billion AI infrastructure investment plan and unveiled a new physical AI partnership with Nvidia, reigniting optimism around Alibaba’s AI ambitions.
Singapore Market - STI Pulled back
The Straits Times Index (STI): Slipped 0.85% to 4,265.98 for the week, as investors digested a mix of corporate developments and macro factors.
Singtel (Z74.SI): Had a rough week, falling 3.4% after its Optus unit was fined A$100 million and a major outage was linked to four deaths, raising regulatory and reputational risks.
Centurion Accommodation REIT : Singapore’s IPO market got a major boost from Centurion Accommodation REIT, the city-state’s second-largest listing of the year. The REIT — spun off from Centurion Corp. — jumped 9.1% on debut, pushing Singapore’s 2025 IPO proceeds to S$1.4 billion, the highest in six years and well above 2024’s total of just S$34 million (Bloomberg).
Australian Market - ASX 200 Snapped Losing Streak
The ASX 200 Index (XJO): Edged up 0.16% over the week, ending a three-week slide. The modest rebound came amid mixed corporate earnings and shifting global trade narratives.
Pharma stocks: Came under pressure after President Trump announced sweeping 100% tariffs on all imported patented drugs effective October 1, unless companies shift production to the U.S. The policy announcement triggered broad selling across Australia’s large-cap pharmaceutical names.
The Week Ahead
Macro Factors - U.S. Shutdown Risk, Jobs Report in Focus
Government Shutdown Looms: A major overhang for markets is the potential U.S. government shutdown, which could begin as early as Oct. 1 unless Congress acts. A shutdown would delay key economic releases (e.g., jobs, CPI) and muddy the Fed’s policy signaling ahead of the next FOMC meeting. President Trump will meet top congressional leaders at the White House on Monday in a bid to avert a funding lapse.
Quarter-End Positioning: Tuesday marks the final trading day of Q3, often a period of portfolio rebalancing and window dressing, which could inject additional volatility into markets.
Jobs Report Watch: If not delayed by a shutdown, Friday’s September jobs report will be the week’s marquee data event. Economists expect a 50,000 increase in nonfarm payrolls and an unemployment rate of 4.3%, providing fresh clues on the labor market’s cooling trajectory.
Corporate Updates: Nike's earnings report (Tue) will offer a read on consumer spending trends amid persistent inflation, while Tesla (Thu) will release Q3 delivery numbers — closely watched given the stock’s recent momentum and looming EV tax-credit deadlines.
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