To The Moon

Last Week's Recap

1. Market Digest: Stocks Edge Up, Warsh's Hawkish Jackson Hole, Yields Spike, Inflation Sticky

• Baby steps — $S&P 500(.SPX)$, $NASDAQ(.IXIC)$, and $Dow Jones(.DJI)$ posted fractional weekly gains, regaining ground from the prior week's modest declines. Stocks traded in a narrow range for a third consecutive week.

• Hawkish Fed — Fed Chair Kevin Warsh emphasized inflation risks at Jackson Hole, stating the Fed "must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do."

• Yield reaction — 2-year Treasury yield jumped to 4.35% on Friday (from 4.23% Thursday), reflecting rising expectations for a potential rate hike at the September 16 FOMC meeting.

• Persistent inflation — July PCE rose 0.2% MoM, bringing the annual rate to 3.7%—both slightly above consensus expectations.

• Market calm — VIX fell to an intraday YTD low of 14.1 Friday morning before closing at 14.4, down from 20.9 on July 29.

• Small-cap setback — Russell 2000 fell 1.4% Friday as Warsh's comments fueled rate hike expectations, despite large caps posting modest gains for the week.

• Jobs ahead — August jobs report due Friday will test whether the labor market weakening extended; July showed a 23,000 decline, with the three-month average plunging to 20,000 jobs/month.

2. US Market – SPX gains 0.49% as software rally and mega-cap tech rebound lift the index

The $S&P 500(.SPX)$ gained 0.49% and closed at 7,711.76, as a powerful rally in enterprise software and mega-cap technology offset a sharp decline in $Eli Lilly(LLY)$.

Industry leaders: Health Care Technology (+8.09%), Tires & Rubber (+6.37%), Systems Software (+6.21%), Household Appliances (+4.88%), and Application Software (+4.37%).

9 Popular Stocks:

• $Salesforce.com(CRM)$ +22.39% — The cloud-software giant surged on AI monetization momentum and resilient enterprise CRM demand.

• $CrowdStrike Holdings, Inc.(CRWD)$ +13.78% — The cybersecurity leader rallied on endpoint protection growth and AI-driven threat detection adoption.

• $ServiceNow(NOW)$ +12.63% — The workflow-automation platform advanced on enterprise digital transformation tailwinds.

• $Veeva(VEEV)$ +11.61% — The life-sciences cloud provider gained on pharma R&D spending resilience.

• $Synopsys(SNPS)$ +11.24% — The chip-design software leader climbed on AI semiconductor design demand.

• $Microsoft(MSFT)$ +6.27% — The cloud and AI giant rebounded on Azure growth stabilization and Copilot adoption.

• $Meta Platforms, Inc.(META)$ +5.11% — The social-media giant advanced on AI advertising integration and Reels monetization.

• $Apple(AAPL)$ +3.35% — The iPhone maker rose on services revenue growth and upcoming product-cycle anticipation.

• $Eli Lilly(LLY)$ -6.44% — The pharmaceutical heavyweight slumped on GLP-1 pricing pressure fears and profit-taking after recent strength.

Performance is subjected to market volatility

3. Hong Kong Market – HSI retreats 1.63% as tech and retail carnage offset consumer services strength

$HSI(HSI)$: The Hang Seng Index declined 1.63% and closed at 25,584.79, as heavy selling in tech giants, EV names, and retail plays overwhelmed strength in homebuilding and consumer services. The index struggled to hold the 25,600 level.

The $HSTECH(HSTECH)$ tumbled 3.38% and closed at 4,605.15, with nearly every constituent in the red as profit-taking and margin calls accelerated across the China tech complex.

Industry leaders: Specialized Consumer Services (+25.53%), Homebuilding (+22.17%), Industrial Gases (+17.12%), Advertising (+16.16%), and Tobacco (+11.97%).

8 Popular Stocks:

• $CHINA LIFE(02628)$ +4.85% — The mainland insurance bellwether bucked the rout, advancing on defensive dividend-yield positioning and improving investment-yield expectations.

• $SMIC(00981)$ -3.24% — The mainland foundry declined on profit-taking after recent strength and front-end capex concerns.

• $NTES(09999)$ -3.78% — The gaming giant slipped on regulatory overhang and domestic gaming spending caution.

• $FAST RETAIL-DRS(06288)$ -3.87% — The UNIQLO operator's depositary retreated on China consumer-spending concerns.

• $XIAOMI-W(01810)$ -4.14% — The consumer electronics and EV player fell on EV delivery-margin compression.

• $CATL(03750)$ -5.52% — The battery giant tumbled on lithium oversupply fears and EU tariff escalation concerns.

• $BABA-W(09988)$ -7.4% — The tech conglomerate collapsed on e-commerce margin fears and platform-economy profit-taking.

• $ZJ INNOLIGHT(03308)$ -8.77% — The department store operator was the week's worst performer, plunging on China retail-spending slowdown and margin pressure.

Performance is subjected to market volatility

4. Singapore Market – STI edges up 0.19% as banks and telecom offset China tech weakness

The $Straits Times Index(STI.SI)$ gained 0.19% and closed at 5,699.93, as strength in banks, telecom, and the bourse operator offset sharp declines in Greater China tech SDRs.

Sectors: Interactive Home Entertainment (+7.50%), Specialized Finance (+6.37%), Advertising (+5.37%), Renewable Electricity (+4.61%), and Specialty Stores (+3.97%).

8 Popular Stocks:

• $SGX(S68.SI)$ +2.49% — The bourse operator advanced on rising regional trading volumes and derivatives activity.

• $Wilmar Intl(F34.SI)$ +2.7% — The agribusiness giant gained on resilient food-products demand.

• $Singtel(Z74.SI)$ +2.74% / Z77 +2.27% — The telecom incumbent rallied on defensive yield positioning and Nxera data-center expansion.

• $Ping An Ins HK SDR2to1(HPAD.SI)$ +2.65% — The insurer's SDR advanced on high-dividend-yield attraction.

• $Bank of CN HK SDR 1to1(HBND.SI)$ +1.69% — The Chinese state-owned bank's SDR rose on defensive positioning.

• $AIS TH SDR 10to1(TADD.SI)$ -2.14% — The Thai telecom operator's SDR pulled back on profit-taking.

• $Xiaomi HK SDR 2to1(HXXD.SI)$ -3.4% — The consumer electronics and EV player's SDR declined on Hang Seng Tech weakness.

• $Alibaba HK SDR 5to1(HBBD.SI)$ -7.02% — The Chinese tech giant's SDR was the week's worst performer, collapsing on e-commerce margin concerns and regulatory overhang.

• $Delta TH SDR 1to1(TDED.SI)$ -7.49% — The Thai power-electronics SDR tumbled on profit-taking after its recent AI data-center rally.

Performance is subjected to market volatility

5. Australian Market – XJO edges up 0.37% as miners and retail lift the index

The $S&P/ASX 200(XJO.AU)$ gained 0.37% to 9,092.3, as strength in diversified miners, retail, and consumer staples offset weakness in energy and packaging.

Industry leaders: Consumer Electronics (+26.05%), Paper Products (+25.00%), Technology Distributors (+20.40%), Home Improvement Retail (+19.63%), and Personal Products (+15.67%).

10 Popular Stocks:

• $SOUTH32 LTD(S32.AU)$ +7.36% — The diversified miner surged on manganese and aluminum price strength.

• $PLS Group Ltd(PLS.AU)$ +5.72% — The lithium miner bounced back on oversold technicals and improving battery demand sentiment.

• $COLES GROUP LTD(COL.AU)$ +4.29% — The supermarket giant advanced on defensive positioning and resilient grocery demand.

• $BHP GROUP LTD(BHP.AU)$ +3.28% — Rose on copper and iron ore price stabilization.

• $BRAMBLES LTD(BXB.AU)$ +3.51% — The pallet-pool operator gained on freight demand recovery.

• $WESFARMERS LTD(WES.AU)$ +3.13% — The diversified retail conglomerate climbed on Bunnings and Kmart trading momentum.

• $CSL LIMITED(CSL.AU)$ +2.39% — The biotech heavyweight extended gains on plasma-collection volume recovery.

• $GOODMAN GROUP(GMG.AU)$ +2.38% — The industrial property giant rose on data-centre and logistics demand.

• $AMCOR PLC-CDI(AMC.AU)$ -3.61% — The packaging giant pulled back on consumer staples rotation.

• $SCENTRE GROUP(SCG.AU)$ -4.09% — The shopping-centre REIT declined on retail-spending caution and yield-proxy rotation.

• $WOODSIDE ENERGY GROUP LTD(WDS.AU)$ -4.47% — The oil & gas producer fell alongside Brent crude weakness.

Performance is subjected to market volatility

The Week Ahead: Aug 31- Sep 4

Macro Factors：

Monday, Sep 1

Dallas Fed Texas Manufacturing Outlook Survey (August) — Federal Reserve Bank of Dallas

Tuesday, Sep 2

Job Openings and Labor Turnover Survey (JOLTS) — Bureau of Labor Statistics

Friday, Sep 4

August Jobs Report / Nonfarm Payrolls — Bureau of Labor Statistics

  Consensus estimate: +58,000

2. Earnings Focus: NIO PANW DELL AVGO SNOW