To The Moon

Last Week's Recap

Weekly Market Digest: CPI/PPI Shock, Treasury Yields Spike, and the 7-Week Rally Flattens

Flattening out — $S&P 500(.SPX)$ notched its seventh weekly gain in a row, but the barely-there 0.2% rise marked a sharp departure from prior weeks' big increases; NASDAQ and Dow both posted fractional weekly declines.

Yields spike — The 10-year Treasury yield finished at 4.59% (up from <4.00% as recently as late February); the 2-year was 4.08%, while the 30-year hit 5.12%—the highest since 2007.

Hot inflation readings — April CPI rose at a 3.8% annual rate (highest since May 2023); PPI surged to a 6.0% annual rate (highest since December 2022), driving bond yields higher.

Rate hike ahead? — CME FedWatch now implies roughly a 50% probability the Fed hikes by either 25bp or 50bp by December, with nearly 49% odds of no change and less than 1% chance of a cut.

Top & bottom lines — S&P 500 Q1 revenue growth is on pace for 11.4% (highest since Q2 2022), while earnings growth sits at 27.7% (highest since Q4 2021), per FactSet.

Fed chair transition — The Senate approved Kevin Warsh as Fed chair, replacing Jerome Powell; Warsh’s first meeting is set for June 16–17, with Powell retaining a seat as a Fed governor for now.

Style reversal — Large-cap growth outperformed value for the 6th week out of the past 7, while small-caps lagged with the benchmark falling 2.3%.

Dollar strengthens — The U.S. dollar strengthened to a two-week high, notching its largest weekly rise in two months and its fifth consecutive daily gain on expectations of more restrictive U.S. monetary policy.

The US Sectors & Stocks – SPX edges up 0.13% as Cisco’s AI-fueled earnings explosion offsets chip-sector rotation

$S&P 500(.SPX)$ gained 0.13% and closed at 7,408.5, as a blockbuster earnings report from Cisco and strength in energy majors offset sharp profit-taking in semiconductor equipment and memory names. The index touched a fresh intraday record above 7,500 mid-week before easing on Friday as traders trimmed exposure ahead of the weekend.

Industry leaders: Cyber Security (+15.54%) led the charge on AI-driven threat-detection demand and Cisco’s earnings spillover into the broader networking-security complex. Communication Equipment (+10.83%) surged on hyperscaler AI infrastructure orders and 5G capital expenditure. Tobacco (+10.18%) advanced on defensive rotation and resilient cash flows, while Alternative Carriers (+9.69%) climbed as yield-seeking investors pivoted toward telecom infrastructure. NVIDIA Portfolio (+9.45%) rounded out the top performers, tracking NVDA’s continued data-center momentum and expanding AI ecosystem partnerships.

10 Popular Stocks:

• $Cisco(CSCO)$ +22.41% — The networking giant skyrocketed after delivering a blowout fiscal Q3 2026 report: revenue jumped 12% YoY to $15.84 billion (above the $15.56 billion consensus), adjusted EPS hit $1.06 (beating $1.03 estimates), and management raised full-year guidance to $62.8–$63.0 billion in revenue and $4.27–$4.29 in EPS. Investors were particularly enthused by roughly $9 billion in hyperscaler AI infrastructure orders for FY2026, cementing Cisco’s pivot from legacy hardware to AI networking.

• $Exxon Mobil(XOM)$ +9.23% — The integrated supermajor rallied alongside firm Brent crude prices above US$101/bbl, benefiting from OPEC+ supply discipline and resilient global refinery margins. The company’s Permian and Guyana production growth narratives continued to underpin sector leadership.

• $Chevron(CVX)$ +5.22% — The second-largest U.S. oil major tracked the energy complex higher, with its upstream cash-generation capacity and progressive dividend policy attracting institutional inflows even as geopolitical risk premiums in oil moderated slightly.

• $Eli Lilly(LLY)$ +5.95% — The pharmaceutical heavyweight advanced on continued GLP-1 demand resilience, with Zepbound and Mounjaro prescriptions holding strong and management commentary reinforcing confidence in manufacturing scale-up for obesity and diabetes indications.

• $NVIDIA(NVDA)$ +4.7% — The AI chip leader climbed as data-center revenue momentum persisted and the company expanded its enterprise AI software attach rate. The stock benefited from broader “NVIDIA Portfolio” sector rotation, though it pared some gains late in the week alongside profit-taking across the semiconductor space.

• $Amazon.com(AMZN)$ -3.13% — The e-commerce and cloud giant slipped as investors locked in gains ahead of its upcoming quarterly results, with lingering concerns over AWS margin compression and North American retail shipping-cost inflation weighing on sentiment.

• $Micron Technology(MU)$ -2.97% — The memory-chip maker retreated on sector-wide rotation out of DRAM and NAND plays after a strong run; near-term pricing normalization fears in consumer PC and smartphone memory offset optimism in high-bandwidth memory for AI servers.

• $ASML Holding NV(ASML)$ -5.67% — The lithography equipment bellwether pulled back as front-end semiconductor capex concerns resurfaced, with some investors booking profits after the stock’s recent outperformance and digesting mixed signals on China export-license timelines.

• $Advanced Micro Devices(AMD)$ -6.83% — The CPU and GPU designer fell sharply as competitive pressure in the data-center AI accelerator market intensified, and the stock faced valuation compression after failing to match NVIDIA’s near-term AI revenue trajectory; profit-taking was amplified by options-market hedging flows.

• $Intel(INTC)$ -12.93% — The chipmaker was the week’s biggest decliner among large-cap tech, collapsing from Monday’s gap-up open near $130.88 as reality set in on execution risks surrounding its Apple foundry-deal speculation and a newly announced restructuring plan to cut roughly 4,000 jobs with up to $1 billion in related charges. The violent reversal came after the stock had nearly doubled from late-April lows, triggering systematic stop-loss selling and concerns over long-term foundry profitability.

Performance is subjected to market volatility

Hong Kong Market - HSI retreats 1.63% as tech profit-taking and insurance weakness offset energy gains

$HSI(HSI)$ : The Hang Seng Index declined 1.63% and closed at 25,962.73, as heavy selling in tech giants and insurance names overwhelmed modest gains in energy and consumer plays. The index struggled to hold the 26,000 psychological level as global risk-off sentiment and renewed concerns over U.S.-China tech decoupling weighed on sentiment.

$HSTECH(HSTECH)$ tumbled 3.17% and closed at 4,941.4, with Southbound fund flows turning mixed as mainland investors trimmed exposure to Hong Kong’s high-beta tech names ahead of a crowded earnings calendar. The index closed below the 5,000 support level for the first time in several weeks.

Industry leaders: Communications Equipment (+25.36%) dominated the leaderboard, driven by speculative positioning in 5G infrastructure plays and AI networking hardware demand. Systems Software (+8.23%) advanced on enterprise digitalisation tailwinds. Commercial & Residential Mortgage Finance (+8.06%) and Thrifts & Mortgage Finance (+8.06%) rebounded on easing China property-policy speculation and mortgage-rate relief hopes. Petroleum ETF (+7.61%) rounded out the top performers as Brent crude held firm and energy-sector inflows provided a haven from tech volatility.

10 Popular Stocks:

• $CATL(03750)$ +4.45% — The battery giant bucked the tech-sector rout, advancing as global EV battery order flows remained resilient and the company’s energy-storage division secured new European grid-scale contracts. Investors looked past near-term lithium-price weakness to focus on its dominant market share.

• $CISCO-T(04333)$ +29.31% — The networking equipment name soared on thin-volume speculative buying, likely fueled by AI data-center networking tailwinds and momentum-driven retail flows chasing breakout momentum in the communications equipment space.

• $ABC(01288)$ +2.69% — The mainland state-owned lender advanced on defensive positioning as investors rotated into high-dividend-yield financials; its policy-bank status and ~7% dividend yield offered shelter from the tech-led volatility.

• $PETROCHINA(00857)$ +2.83% — The upstream energy giant tracked Brent crude higher, benefiting from OPEC+ supply discipline and resilient China refinery runs. The stock’s outperformance versus the broader index highlighted ongoing sector rotation into commodity proxies.

• $FAST RETAIL-DRS(06288)$ +7.65% — The Japan-based apparel retailer’s Hong Kong depositary receipt surged as UNIQLO’s China same-store sales showed signs of bottoming and the company raised its FY2026 revenue guidance on Southeast Asia expansion.

• $BABA-W(09988)$ -4.82% — The Chinese tech conglomerate slumped as profit-taking accelerated across the HK tech complex; investors locked in gains ahead of its upcoming quarterly results, while lingering regulatory scrutiny on cloud and domestic e-commerce segments capped upside.

• $PING AN(02318)$ -4.8% — The mainland insurance heavyweight declined as investment-yield concerns resurfaced amid volatile equity markets, and property-sector credit risks weighed on its massive real-estate exposure.

• $ZIJIN MINING(02899)$ -8.68% — The gold and copper mining giant slumped as gold futures retreated sharply from recent highs (spot fell toward US$4,560/oz during the week) and China copper inventories showed unexpected builds. The sharp correction triggered leveraged stop-loss selling across the metals complex.

• $BYD COMPANY(01211)$ -3.31% — The EV and battery giant tracked the HSTECH lower despite resilient monthly delivery numbers; concerns over EU tariff escalation on Chinese EV exports and domestic price-war intensity weighed on margin expectations.

• $CHINA LIFE(02628)$ -4.41% — The mainland insurance bellwether fell as equity-market volatility hit its investment-book valuations and new-business-value growth showed signs of plateauing. The stock’s deep discount to global peers was not enough to offset sector-wide selling in financials.

Performance is subjected to market volatility

Singapore Market – STI rallies 1.36% on bank earnings strength and cross-sector rotation

The Straits Times Index (STI) gained 1.36% and closed at 4,989.08, as strength in local banks and telecom sectors offset weakness in gold-backed assets and select Greater China SDRs. The index broke above the 4,950 resistance level, reflecting renewed institutional inflows and optimism around Singapore’s resilient Q1 corporate earnings.

Sectors: Publishing (+50.00%) and Homebuilding (+31.82%) dominated the weekly leaderboard, fueled by corporate-action momentum and thin-trading strength in small-cap media names. Electronic Equipment & Instruments (+31.44%) and Semiconductor Equipment (+17.43%) extended gains on AI-driven precision manufacturing demand and resilient global front-end chip capex. Transaction & Payment Processing Services (+12.01%) rounded out the top performers as fintech earnings momentum and Southeast Asia digital-payment adoption persisted.

8 Popular Stocks:

• $DBS(D05.SI)$ +4.03% — Singapore’s largest banking group advanced on stronger-than-expected Q1 net-interest income and record wealth-management fees; management’s upbeat FY2026 loan-growth guidance reinforced investor confidence in the city-state’s banking-sector premium.

• $OCBC Bank(O39.SI)$ +4.61% — The banking heavyweight outperformed on resilient Greater China asset quality and accelerating insurance bancassurance flows; investors also cheered its sustained cost-to-income improvement and commitment to a progressive dividend policy.

• $UOB(U11.SI)$ +2.02% — The third-largest local bank climbed on steady ASEAN commercial-banking momentum and robust credit demand across regional markets; its digital wholesale-banking platform continues to gain traction with SME clients.

• $PetroCN HK SDR 1to2(HPCD.SI)$ +3.8% — The HK-listed oil major’s Singapore SDR gained as Brent crude stabilized on OPEC+ supply discipline and recovering China demand; the company’s accelerated natural-gas transition strategy also attracted ESG-focused regional funds.

• $Singtel(Z74.SI)$ +2.77% — Singapore’s telecom incumbent rose on optimism around its Nxera regional data-center expansion and an improving Optus free-cash-flow trajectory in Australia; the stock remains a defensive yield play ahead of its interim dividend ex-date.

• $AIS TH SDR 10to1(TADD.SI)$ +3.63% — Thailand’s largest mobile operator advanced on strong Q1 5G enterprise contract wins and prepaid subscriber growth; the company benefits from Singtel’s strategic stake and regional digital-infrastructure synergies.

• $GLD US$(O87.SI)$ -3.55% — The physically backed gold ETF pulled back as global risk-on sentiment reduced safe-haven demand; profit-taking after recent record highs and easing geopolitical tensions weighed on bullion prices.

• $Alibaba HK SDR 5to1(HBBD.SI)$ -3.98% — The Chinese tech giant’s Singapore SDR declined on profit-taking across the HK tech complex; investors locked in gains ahead of its upcoming quarterly results, while lingering regulatory scrutiny on cloud and domestic e-commerce segments capped upside.

*Performance is subjected to market volatility

Australian Market - XJO slips 1.3% as banking-sector rout offsets resource resilience

The S&P/ASX 200 Index (XJO.AU) declined 1.3% to 8,630.8 over the week, as a sharp selloff in the Big Four banks and ongoing yield-curve concerns overshadowed strength in iron ore miners, energy names, and AI-linked industrial plays.

Industry leaders: Semiconductors (+50.93%) led the charge on speculative positioning in local AI-enablers and micro-cap chip plays; Electronic Components (+27.78%) surged on electrification and defence-electronics demand. Heavy Electrical Equipment (+11.44%) advanced on grid-modernisation capex and renewable-connection backlogs, while Diversified Chemicals (+11.14%) tracked global specialty-chemical pricing higher. Oil & Gas Drilling (+10.00%) rounded out the top performers as Brent crude held firm and offshore rig-utilisation rates improved.

10 Popular Stocks:

• $COMMONWEALTH BANK OF AUSTRALIA(CBA.AU)$ -9.39% — Australia’s largest lender slumped after a softer third-quarter trading update revealed margin compression and slowing loan growth; investors also priced in heightened competition in mortgage pricing and rising funding costs ahead of the full-year result.

• $NATIONAL AUSTRALIA BANK LTD(NAB.AU)$ -4.8% — The business-focused bank declined on concerns over commercial-property exposure and tighter credit conditions for SME lending; the stock underperformed peers as markets discounted its premium valuation relative to the sector.

• $WESTPAC BANKING CORPORATION(WBC.AU)$ -4.27% — The Sydney-based lender tracked the sector lower as consumer-banking momentum softened and cost-out targets faced execution risks; management’s commentary on deposit competition did little to arrest the slide.

• $ANZ GROUP HOLDINGS LTD(ANZ.AU)$ -2.09% — The Melbourne-based bank proved relatively resilient despite the sector-wide rout, supported by its institutional-banking franchise and better-than-feared capital ratios; however, macro headwinds still clipped sentiment.

• $Rio Tinto Ltd(RIO.AU)$ +3.93% — The diversified miner advanced on solid Pilbara iron-ore shipments and recovering copper output from Oyu Tolgoi. Near-term cash generation remains robust despite long-term Chinese steel-demand headwinds, underpinning the board’s progressive dividend policy.

• $BPH ENERGY LTD(BPH.AU)$ +4.33% — The diversified micro-cap holding gained on renewed speculative interest in its Advent Energy oil & gas exploration stake and hydrogen-production technology portfolio; thin liquidity amplified the move as energy-transition narratives attracted retail flows.

• $Macquarie(MQG.AU)$ +1.56% — The global investment bank and asset manager bucked the financial-sector weakness, advancing on resilient commodity-trading profits and green-infrastructure asset realisations; its diversified revenue base continues to offer a hedge against domestic banking cyclicality.

• $FORTESCUE LTD(FMG.AU)$ +6.25% — The pure-play iron ore miner outperformed, buoyed by strong shipping volumes and steady 62% Fe prices. Progress in its green-energy pivot and potential decarbonisation partnerships also attracted ESG-focused buying after recent weakness.

• $GOODMAN GROUP(GMG.AU)$ +3.70% — The industrial and data-centre property giant advanced on continued AI-driven logistics demand and new development starts across its global warehouse portfolio; rental growth in key markets remains ahead of inflation.

• $WOODSIDE ENERGY GROUP LTD(WDS.AU)$ +3.99% — Australia’s largest independent oil & gas producer tracked the energy sector higher, benefiting from firm LNG spot pricing and progress on its Scarborough project timeline; the stock remains a key dividend proxy for energy exposure.

*Performance is subjected to market volatility

The Week Ahead

Macro Factors: May 18-22

Earnings Spotlight: NVDA| WMT | NIO | NTES | BIDU

Monday

• Pre-market: $Baidu(BIDU)$ , $iQiyi Inc.(IQ)$

• After-hours: $Yalla Group(YALA)$

Tuesday

• Pre-market: $Home Depot(HD)$ , $Hesai Group(HSAI)$ , $Bilibili Inc.(BILI)$ , $Amer Sports, Inc.(AS)$

• After-hours: $Toll Brothers(TOL)$ , $CAVA Group Inc.(CAVA)$

Wednesday

• Pre-market: $Lowe's(LOW)$ , $Target(TGT)$ , $Analog Devices(ADI)$ , $Hasbro(HAS)$

• After-hours: $NVIDIA(NVDA)$ , $Intuit(INTU)$ , $GDS Holdings Ltd(GDS)$ , $e.l.f. Beauty Inc.(ELF)$

Thursday

• Pre-market: $NIO Inc.(NIO)$ , $Wal-Mart(WMT)$ , $NetEase(NTES)$ , $Deere(DE)$ , $Ralph Lauren(RL)$

• After-hours: $Zoom(ZM)$ , $Ross(ROST)$ , $Workday(WDAY)$ , $Take-Two(TTWO)$

Friday

• Pre-market: $Global Ship Lease(GSL)$