To The Moon

Last Week's Recap

1. Market Digest: Stocks Consolidate, Earnings Strong, PPI Cools, Oil Surges

• Stocks consolidate — S&P 500 fell 1.55% for the week; tech lost momentum late as TSM's capex hike and Alphabet's AI delay sparked valuation concerns. Health care, consumer staples, and real estate stayed strong. Energy minerals, commercial services, and consumer non-durables led; communications, electronic tech, and consumer durables lagged.

• Earnings strong — Major banks beat expectations to kick off Q2 season; more than 87% of S&P 500 companies reporting through Thursday exceeded estimates.

• Bonds volatile — 10-year Treasury traded near 4.6% midweek on resilient labor data and Middle East uncertainty, then eased into the weekend on softer PPI and new economic data.

• PPI cools — June producer prices came in softer than expected, temporarily easing inflation concerns and boosting hopes for a less hawkish Fed.

• Oil surges — WTI crude traded near $80 late in the week and pushed higher into the weekend on new U.S.-Iran escalations and Strait of Hormuz supply disruption risks.

• Gold declines — Gold resumed its downtrend on rising yields and renewed Fed hike expectations; fell over 11.7% in June, with a small Friday rally failing to shift bearish sentiment.

• Crypto mixed — Bitcoin opened down 2.25% Monday, reversed with a 4.3% Tuesday jump, and posted a third straight weekly gain (just +0.1%). Ethereum rallied stronger but lost momentum into the weekend.

• Key data ahead — June CPI due this week, critical ahead of the July 29 Fed meeting; earnings from Alphabet, Tesla, GE Vernova, AT&T, Intel, and RTX on tap.

2. U.S. Market — S&P 500 drops 1.55% as AI memory stocks crash, energy rallies on geopolitics

The $S&P 500(.SPX)$ shed 1.55% and closed at 7,457.69, as a brutal selloff in AI memory and semiconductor stocks offset gains in energy and Apple. The tech-heavy NASDAQ 100 plunged 4.13% for the week, reflecting a sharp rotation out of AI infrastructure plays and into commodity names amid escalating Middle East tensions.

Sectors: Oil & Gas Refining & Marketing (+10.35%), Textiles (+9.35%), Diversified Support Services (+8.63%), and Tires & Rubber (+7.05%) led as investors fled tech for commodity and defensive plays.

10 Popular Stocks:

• $Apple(AAPL)$ +5.84% — The iPhone maker bucked the tech rout, rallying on strong iPhone 17 pre-order demand and services revenue resilience. The stock's defensive characteristics and massive cash pile attracted rotation flows from more speculative AI plays.

• $Exxon Mobil(XOM)$ +6.11% — The energy giant surged as crude oil jumped ~4% on US-Iran escalation and Strait of Hormuz supply fears. XOM pre-announced that higher crude will boost Q2 upstream earnings by ~$3.5–3.9B versus Q1, providing a fundamental kicker on top of the geopolitical premium.

• $NVIDIA(NVDA)$ -3.86% — The AI chip leader retreated as broader semiconductor sentiment soured, though its decline was relatively modest compared to memory peers. Blackwell Ultra demand remains "extraordinary," but valuation concerns and rotation into energy weighed.

• $Taiwan Semiconductor Manufacturing(TSM)$ -8.23% — The world's most advanced chip foundry plunged after raising 2026 capex guidance to $60–$64 billion, exceeding the prior $56B upper limit. While emphasizing "extremely robust" AI demand, the elevated capex spooked investors focused on free cash flow compression.

• $Broadcom(AVGO)$ -7.29% — The chipmaker retreated from recent highs despite its $10B AI chip order win, as the broader semi complex faced de-risking. The stock had surged 11% the prior week on Meta partnership news, leaving it vulnerable to profit-taking.

• $SpaceX(SPCX)$ -14.67% — The space infrastructure ETF crashed as the speculative corner of the market bore the brunt of risk-off selling, with higher rates and geopolitical fears hitting high-beta, pre-revenue names hardest.

• $Tesla Motors(TSLA)$ -6.6% — The EV maker fell as the broader growth complex sold off, with concerns over robotaxi timeline delays and competition from Chinese EV makers adding to the pressure.

• $SK hynix(SKHY)$ -8.23% — The HBM memory leader's Nasdaq ADR plunged alongside a devastating 11.3% drop in Seoul trading, wiping out virtually all gains from its prior 13% rally. The July 10 Nasdaq debut introduced extreme volatility, with options and leveraged ETFs amplifying moves in both directions. Barclays launched coverage with Overweight and $330 target, citing HBM constraints through 2027.

• $Micron Technology(MU)$ -13.31% — The memory maker crashed 26.5% from its June peak of $1,154 to $848, triggered by TSMC's capex hike, Chinese competitor CXMT's $8.55B IPO plans, and SK Hynix's listing debacle. Multiple top-tier analysts maintain Buy ratings with $1,400–$1,600 targets.

• $Advanced Micro Devices(AMD)$ -11.14% — The chip designer plunged ahead of its July 22 Advancing AI event, as the broader semi rout dragged down even names with strong product cycles. The stock gave back a significant portion of its recent gains on sector-wide de-risking.

*Performance is subjected to market volatility

3. Hong Kong Market — HSI gains 1.6% as energy and banks lead, China Life slumps

$HSI(HSI)$: The Hang Seng Index gained 1.6% and closed at 24,562.24, driven by strength in energy majors and state-owned banks, offset by heavy selling in insurance and select tech names. The index held above the 24,000 level as Southbound funds rotated into commodity and financial plays.

Sectors: Industrial Gases (+28.09%), Multi-Sector Holdings (+18.56%), and Real Estate Services (+10.33%) led the concept board on idiosyncratic strength.

10 Popular Stocks:

• $CATL(03750)$ +3.32% — The battery giant bounced back from last week's -13% plunge, with investors buying the dip after the stock fell to a one-month low near HK$587. UBS maintains a HK$820 target, citing the company's vertically integrated energy storage ecosystem and dominant market share.

• $ICBC(01398)$ +3.75% — The world's largest bank by assets rallied alongside peers as state-owned banks continued to attract rotation flows. The stock's ~6% dividend yield and defensive appeal remain key draws.

• $ABC(01288)$ +3.46% — Agricultural Bank of China advanced on the banking sector rotation, with its massive rural branch network and policy-backed lending focus offering unique defensive characteristics.

• $PETROCHINA(00857)$ +6.2% — The upstream energy major surged as crude oil prices stabilized near $95–$102/bbl on lingering Middle East supply concerns. The stock benefited from the broader petroleum complex rally and its attractive valuation relative to global peers.

• $CNOOC(00883)$ +4.12% — The offshore oil specialist rebounded from last week's decline, tracking PetroChina higher as energy sentiment improved. The stock's high beta to oil prices amplified the rebound.

• $BYD COMPANY(01211)$ +4.48% — The EV and battery maker advanced on strong monthly delivery numbers and expanding export momentum into Southeast Asia and Europe. The company's vertical integration and cost leadership continue to support its competitive position.

• $FAST RETAIL-DRS(06288)$ -1.34% — The Uniqlo parent's Hong Kong Depositary Receipts edged lower in profit-taking after its recent earnings-driven volatility, despite reporting robust nine-month revenue of ¥3.07 trillion (+17.1% YoY).

• $ZIJIN MINING(02899)$ -2.07% — The gold and copper mining giant retreated as gold prices pulled back from recent highs, with profit-taking hitting the sector after its strong 2025-2026 run. Goldman Sachs maintains a Buy rating with a HK$52 target.

• $CHINA LIFE(02628)$ -6.83% — The mainland insurance heavyweight led the decliners, plunging on profit-taking after its recent +7.6% surge. The stock's deeply discounted valuation (~5x P/E) wasn't enough to prevent rotation out of insurance into energy and banks.

*Performance is subjected to market volatility

4. Singapore Market — STI edges up 0.73% to record as banks and tech SDRs extend rally

$Straits Times Index(STI.SI)$ gained 0.73% and closed at a fresh record high of 5,509.43, marking its sixth consecutive weekly advance. The index has now surged 18.58% YoY, with the three local banks and select China tech SDRs continuing to drive the rally.

Sectors: Publishing (+50.00%), Aluminum (+45.24%), and Forest Products (+30.48%) dominated the leaderboard on idiosyncratic catalysts, though these thinly traded sectors had outsized moves on low volume.

9 Popular Stocks:

• $DBS(D05.SI)$ +2.14% — Singapore's largest bank extended its record-breaking run, with the stock trading near S$71. The bank's 6.1% estimated 2026 yield and quarterly dividend model (60-cent ordinary + 15-cent capital return) continue to attract institutional inflows.

• $OCBC Bank(O39.SI)$ +4.12% — The longest-established Singapore bank rallied on rotation into financials, with its strong CET1 ratio (~15-17%) and potential payout ratio increase to 60% driving re-rating hopes.

• $TLKM ID SDR 1to5(ITKD.SI)$ +9.09% — The digital wealth platform surged on continued momentum in assets under administration and expanding product offerings across its pan-Asian platform. The stock has been a consistent beneficiary of rising retail participation in cross-border investment products.

• $Xiaomi HK SDR 2to1(HXXD.SI)$ +3.76% — The consumer electronics and EV player's Singapore SDR advanced as its SU7 electric vehicle delivery numbers continued to beat monthly targets, and its AIoT ecosystem gained traction across Southeast Asia.

• $IHH(Q0F.SI)$ +5.19% — The Asia-Pacific healthcare operator rallied on defensive positioning and resilient hospital admissions across its Malaysian, Singapore, and Turkish operations.

• $PetroCN HK SDR 1to2(HPCD.SI)$ +5.03% — The Singapore-listed HK SDR tracked its Hong Kong parent higher as crude oil prices stabilized near $95–$102/bbl on lingering Middle East supply concerns, lifting the energy major alongside the broader petroleum complex.

• $GLD SG$(GSD.SI)$ -2.49% — The SGD-denominated gold ETF retreated as safe-haven demand eased amid tentative US-Iran de-escalation talks and profit-taking after gold's strong run.

• $GLD US$(O87.SI)$ -2.68% — The world's largest physically-backed gold ETF saw outflows as investors rotated from safe havens into risk assets, with the ETF holding gold custodied by HSBC and JPMorgan.

• $Delta TH SDR 1to1(TDED.SI)$ -4.25% — The Thailand-based power-electronics giant's SDR retreated on profit-taking after a strong run, though its AI data-center power-supply demand narrative remains intact.

*Performance is subjected to market volatility

5. Australian Market — ASX 200 flat as miners retreat, banks and energy provide support

The $S&P/ASX 200(XJO.AU)$ dipped 0.11% and closed at 8,796.7, as weakness in iron ore miners and gold offset gains in the big-four banks, energy, and defensive names. The index held within a tight range, reflecting cautious sentiment ahead of key commodity price data.

Sectors: Technology Hardware, Storage & Peripherals (+33.33%) led on idiosyncratic strength, while Apparel, Accessories & Luxury Goods (+9.51%), Oil & Gas Equipment & Services (+9.09%).

10 Popular Stocks:

• $BHP GROUP LTD(BHP.AU)$ -1.27% — The world's largest miner edged lower as iron ore prices remained under pressure near US$98/tonne, with Westpac's bearish US$83/tonne end-2026 forecast continuing to weigh on sentiment.

• $COMMONWEALTH BANK OF AUSTRALIA(CBA.AU)$ +1.73% — Australia's largest bank advanced on defensive rotation, with its dominant market position and resilient dividend yield attracting buyers despite concerns over slowing credit growth.

• $Rio Tinto Ltd(RIO.AU)$ -2.15% — The iron ore giant tracked BHP lower, with the stock facing continued pressure from Chinese steel demand concerns and the Simandou supply increase.

• $NEWMONT CORP-CDI(NEM.AU)$ -4.37% — The world's largest gold miner retreated as gold prices pulled back from recent highs, with profit-taking hitting the sector after its strong 2025-2026 run.

• $WESFARMERS LTD(WES.AU)$ +3.46% — The diversified conglomerate rallied as its retail portfolio (Bunnings, Kmart) showed resilience, with investors favoring its defensive consumer staples exposure.

• $Block Inc(XYZ.AU)$ +2.55% — Australia's leading supermarket chain advanced on its defensive earnings profile and ~2.7% fully franked dividend yield, with the stock recovering from earlier 2026 weakness.

• $WOODSIDE ENERGY GROUP LTD(WDS.AU)$ +4.85% — The oil and gas major surged as crude prices stabilized and operational updates signaled production resilience, reversing prior-week weakness.

• $Resmed DRC(RMD.AU)$ -4.26% — The sleep-apnea device maker retreated on profit-taking after its recent strength, with the stock's premium valuation leaving it vulnerable to rotation.

• $FORTESCUE LTD(FMG.AU)$ +2.17% — The iron ore pure-play bucked the sector downturn, rallying on value buying after a sharp decline and its green hydrogen diversification narrative.

• $TELSTRA GROUP LTD(TLS.AU)$ +2.86% — The telecom giant advanced on defensive positioning, with its FY2026 expected 20-cent fully franked dividend (~4.1% yield) attracting income investors seeking shelter from commodity volatility.

*Performance is subjected to market volatility

The Week Ahead: July 20-25

1. Macro Factors:

• Two key labor-market indicators will be released this week: ADP weekly employment change, weekly initial jobless claims

• Latest S&P Global Purchasing Managers Index (PMI) readings and new-home sales data are due for release on Friday

• U.S. President Donald Trump is scheduled to attend the White House Correspondents' Association Dinner on July 24

• AMD's Advancing AI 2026 event will be held July 22–23 (Pacific Time) at San Francisco's Moscone Center, supporting on-site attendance and live streaming

• The European Central Bank (ECB) will announce its interest rate decision on July 23; market consensus expects interest rates to remain unchanged

2. Earnings Focus: TSLA GOOG IBM INTC NXP