To The Moon

Last Week's Recap

The US Market - stocks sink into correction

• Wall Street endured a brutal week, with the S&P 500 and Nasdaq both slipping into correction territory, while the Dow dropped more than 3%—marking its worst week since March 2023. Even Friday’s rally wasn’t enough to offset the damage.

• Monday’s selloff was particularly severe. The Nasdaq plunged 4% in its worst session since September 2022, while the S&P 500 fell below its critical 200-day moving average. Meanwhile, the small-cap Russell 2000 edged closer to bear market territory, now nearly 20% off its highs.

• February’s Consumer Price Index (CPI) came in slightly cooler than expected. Both headline and core CPI rose 0.2% month-over-month, coming in just below Wall Street forecasts. On an annual basis, headline inflation stood at 2.8%, while core inflation came in at 3.1%, each 0.1% lower than both expectations and the prior month’s figures.

• Gold surged to a fresh intraday all-time high on Friday, with April-dated futures reaching $3,017.10 per ounce. The metal’s rally reflects growing market uncertainty as traders hedge against volatility stemming from the latest trade war developments.

The US Sectors & Stocks - INTC surged as naming a new CEO

• Even with a broad market rebound on Friday, only two sectors—energy and utilities—managed to end the week in positive territory, rising 2.7% and 2.3%, respectively.

• Intel (INTC) was a standout performer, surging 16.2% for the week after naming former board member and semiconductor veteran Lip-Bu Tan as its new CEO. The company also signaled that it is unlikely to separate its chip design and manufacturing divisions, reinforcing its commitment to an integrated model.

• Tesla (TSLA) had a brutal start to the week, plunging over 15% on Monday— its worst single-day loss since 2020. The sharp drop coincided with CEO Elon Musk admitting to the “great difficulty” of managing his businesses, alongside the market’s reaction to former President Donald Trump’s controversial government efficiency initiative. Tesla shares ended the week down roughly 5%.

• Nvidia (NVDA) staged a strong comeback, rallying nearly 8% for the week after an early selloff. Investor confidence was bolstered by Foxconn’s guidance, which reaffirmed that demand in the AI sector remains strong. All eyes are now on Nvidia’s GPU Technology Conference, which kicks off Monday in San Jose, where CEO Jensen Huang will deliver a keynote address.

• Apple (AAPL) continued its downward slide, tumbling more than 10% for the week as concerns over tariffs and intensifying competition in China weighed on investor sentiment. The iPhone maker remains one of the worst-performing megacap stocks year-to-date.

Hong Kong Market - AI optimism sparks tech buying

• Hong Kong stocks slided this week as renewed tariff concerns pressured sentiment, with the Hang Seng Index (HSI) slipping 1.12%. However, investors returned to tech stocks on Friday, betting that artificial intelligence (AI) advancements will continue to fuel a market rally in 2024.

• Hong Kong’s stock market remains up 19% year-to-date, while the Hang Seng Tech Index has surged 32%, largely driven by enthusiasm around Chinese AI startup DeepSeek’s breakthroughs. The rally has also prompted global banks, including Citigroup and Goldman Sachs, to turn more bullish on Chinese equities, citing attractive valuations as U.S. stocks slide into correction territory.

• CK Hutchison (0001.HK), controlled by billionaire Li Ka-shing, tumbled 6.6% after China’s Hong Kong and Macau Affairs Office republished a critical article from state-owned Ta Kung Pao. The report condemned the company’s sale of port assets—including two in Panama—to U.S. investors, including BlackRock, raising concerns over potential political fallout.

Singapore Market - STI slided 2% amid global selloff

• Singapore shares dropped 2% this week, mirroring losses in U.S. and European markets as trade tensions weighed on investor sentiment.

• Singapore Exchange (SGX) announced plans to list Bitcoin perpetual futures, as traditional exchanges continue expanding into cryptocurrency derivatives. The move underscores growing institutional demand for regulated digital asset products.

• Prosecutors revealed on Thursday that local firms are accused of illegally supplying U.S. servers to Malaysia in transactions worth $390 million. Three men have been charged with defrauding Dell and Super Micro by misrepresenting the final destination of the hardware. Singapore media reports suggest the case could be linked to the possible transfer of Nvidia's AI chips to Chinese AI startup DeepSeek.

Australian Market - ASX 200 lost 2%

• The Australian sharemarket closed the week in the red, with the ASX 200 shedding around 2% amid a global equity selloff. Despite gains in iron ore and gold mining stocks, the index posted its third-largest weekly loss of the year.

• Consumer confidence in Australia showed signs of improvement in March, as inflationary pressures eased and the Reserve Bank of Australia (RBA) cut interest rates for the first time in four years. According to a Westpac Banking Corp. survey released Tuesday, sentiment jumped 4% to 95.9 points, marking the highest level in three years. However, the reading remains below the 100 threshold, indicating that pessimists still outnumber optimists.

The Week Ahead

Macro Factors - FOMC & Nvidia's GTC

• The Federal Reserve is set to announce its latest monetary policy decision on Wednesday. The central bank is widely expected to keep the federal funds rate steady at 4.25%–4.50%, but investors will be closely watching for any shifts in policymakers’ outlook.

• A key focus will be the Fed’s "dot plot," which outlines expectations for future interest rate movements. Any adjustments to the projected rate path could impact market sentiment, particularly amid ongoing debates over inflation and economic growth. Fed Chair Jerome Powell’s press conference will also be closely scrutinized for signals on potential policy shifts and the central bank’s economic assessment.

• The retail sales report from the Census Bureau on Monday is also highly anticipated, given the recent concerns over weakening consumer spending.

• Nvidia’s GTC kicks off Monday in San Jose, with CEO Jensen Huang set to deliver a keynote on Tuesday. The event is expected to showcase Nvidia’s latest advancements in artificial intelligence and chip technology, reinforcing its dominance in the AI sector.

Jensen Huang GTC keynote speech

Earnings

• Chinese tech heavyweights Tencent, Xiaomi, Pinduoduo, and Meituan are set to release earnings this week, with their results likely to play a key role in driving Chinese market sentiment. With China’s economic outlook in focus, markets will be closely watching these earnings reports for insights into consumer spending, regulatory developments, and the broader recovery of the country’s tech industry.