US Fed is quick to downplay any expectations that they will soon consider cutting rates. Even though the inflation has went down, the market has seem to place the fear of peak inflation behind it. Stocks jumped and Dow saw its best single day gain in percentage for over two years. However, we should still take note that the current inflation is still at historical highs even though the peak has seem to pass. US Fed will probably continue with the interest rate hikes after Dec. The fear of recession being imminent still hangs in the air, despite the current market optimism.

Critics are quick to jump in to say that the market had been oversold recently and any form of good news (no matter how big or small) will push the market up into a quick rebound. The recent upside could just be another dead cat bounce with sharp knives waiting to be caught as it eventually dropped further.

On a closer note to home, Singapore market has been closely aligned with the recent changes in US. The 3 local banks have been taking this opportunity to increase its interest rates, with all three banks rapidly increasing their home mortgage interest rates to more than 4% within such a short time frame in line with the rising fed rate hikes.

There seems to be a limit on the bullish sentiments with many counters seeming to take a "break". The uptrend seems to have slowed down and many of them are experiencing a pullback from the recent surge. It could be due to investors getting cautious with sudden uptrend and hold back a bit or it could be contra players cashing in on their trades or a combination of both. Some of the local blue chip stocks with further potential upside that might be worth watching would be $SINGAPORE AIRLINES LTD(C6L.SI)$ , $SINGAPORE TECH ENGINEERING LTD(S63.SI)$  , $YANGZIJIANG SHIPBLDG HLDGS LTD(BS6.SI)$ , $SEMBCORP INDUSTRIES LTD(U96.SI)$  and$THAI BEVERAGE PUBLIC CO LTD(Y92.SI)$ .