To The Moon

Last Week's Recap

1. Weekly Market Wrap: Sticky Inflation, Surging Yields and $100 Oil Pressure US Equities

• Modest retreat: Major US indices fell for four straight days through Thursday but rebounded on Friday to soften weekly losses. The $S&P 500(.SPX)$ & $NASDAQ(.IXIC)$ finished slightly lower for the week while the $Dow Jones(.DJI)$ dropped 1.57%.

• Bond sell-off: The 10-year US Treasury yield closed at 4.97% on Friday, the highest since Oct 2023. 2-year and 30-year yields also hit multi-year highs.

• Oil resurgence: Oil prices pulled back Friday but were still up more than 8% for the week. US crude traded above $100 per barrel, a 4-month high.

• Stubborn inflation: August CPI held at a 3.4% annual rate, well above the Fed’s 2% target. PPI also showed inflation picked up from July’s elevated level.

• Rate hike outlook: After the inflation report, market odds of a Fed rate hike at the Sep meeting rose to 59%, with futures pricing higher borrowing costs.

• Sinking sentiment: The University of Michigan Consumer Sentiment preliminary reading fell sharply to 47.8, down from 51.7 in August, weighed down by inflation worries.

• Home sales slump: High mortgage rates dragged down residential real estate. Existing home sales fell 2% month-over-month in August; inventory topped 1.6 million for the first time since 2019.

• Small-cap setback: US small-cap stocks underperformed large caps sharply. The Russell 2000 fell 2.4% for the week, as investors priced in higher funding costs for smaller firms.

2. U.S. Market – S&P 500 falls 0.80% as AI and semiconductor stocks diverge

The $S&P 500(.SPX)$ declined 0.80% and closed at 7,656.98, as investors rotated within the technology sector while broader market sentiment weakened. Semiconductor stocks such as $Advanced Micro Devices(AMD)$ and $Intel(INTC)$ posted strong gains, while $NVIDIA(NVDA)$ and $Microsoft(MSFT)$ faced selling pressure. The divergence highlights continued investor interest in AI infrastructure and chip-related opportunities, despite broader risk-off positioning.

Top Sectors:

Hydrogen Energy (+16.27%), Diversified Chemicals (+11.30%), Marine Ports & Services (+8.16%), Electronic Components (+7.77%), and NVIDIA Portfolio (+6.35%).

10 Popular Stocks:

• $NVIDIA(NVDA)$ -4.45% — The AI chip leader declined amid profit-taking and rotation within the semiconductor sector. Despite the pullback, continued demand for AI computing infrastructure remains a key long-term driver.

• $Microsoft(MSFT)$ -2.84% — The software and cloud giant retreated as investors reassessed valuations across large-cap technology stocks. Concerns over AI-related capital expenditure and the pace of cloud monetisation added to selling pressure.

• $Tesla Motors(TSLA)$ -2.90% — The electric vehicle maker declined as investors remained cautious on the growth outlook for EV demand and the company’s valuation amid broader technology-sector volatility.

• $Meta Platforms, Inc.(META)$ +6.12% — The social media and AI infrastructure company was a standout performer, supported by strong investor interest in AI investment and the potential for improved advertising monetisation.

• $Eli Lilly(LLY)$ -3.79% — The pharmaceutical giant faced selling pressure as investors rotated away from defensive healthcare names. The decline reflects broader market positioning rather than a specific company catalyst.

• $Advanced Micro Devices(AMD)$ +13.15% — The semiconductor stock led the tracked names, benefiting from strong investor demand for AI-related chip exposure and optimism around its competitive positioning in data-center accelerators.

• $Johnson & Johnson(JNJ)$ -4.62% — The healthcare heavyweight underperformed as investors reduced exposure to defensive stocks amid portfolio rotation and broader market volatility.

• $Intel(INTC)$ +12.29% — The chipmaker surged as investors renewed interest in its turnaround potential and semiconductor manufacturing strategy, making it one of the week’s strongest large-cap technology performers.

• $Cisco(CSCO)$ +3.24% — The networking equipment provider advanced as investors favoured companies positioned to benefit from AI-related data-center infrastructure and networking demand.

• $Oracle(ORCL)$ -2.44% — The enterprise software and cloud company declined amid broader technology-sector weakness, as investors reassessed valuations and the pace of cloud and AI infrastructure spending.

Performance is subject to market volatility.

3. Hong Kong Market – HSI falls 3.30% as technology and major blue chips face broad selling

The $HSI(HSI)$ fell 3.30% and closed at 24,805.63, while the $HSTECH(HSTECH)$ declined 5.45% to 4,320.57. The sell-off reflected a broad risk-off move across global markets, as higher oil prices and persistent inflation concerns lifted expectations for tighter monetary policy. Rising bond yields and a stronger US dollar pressured equity valuations, while investors reduced exposure to technology and cyclical large-cap stocks.

Sectors:

Eco-Friendly Concept (+10.99%), Petroleum ETF (+9.74%), and Human Resource & Employment Services (+9.45%).

10 Popular Stocks:

• $TENCENT(00700)$ -3.25% — The internet heavyweight declined amid broad technology-sector selling. Higher global yields pressured growth-stock valuations, while risk-off sentiment weighed on investor appetite for large-cap technology names.

• $HSBC HOLDINGS(00005)$ -2.04% — The banking heavyweight retreated as rising global borrowing costs and higher bond yields increased valuation pressure across financial stocks.

• $ABC(01288)$ -2.83% — The state-owned lender declined alongside the broader banking sector as investors reassessed financial-sector valuations amid global rate volatility.

• $ZJ INNOLIGHT(03308)$ +16.30% — The standout performer among tracked names, rising sharply against the broader market decline. The move reflected stock-specific strength, although the provided data does not identify a particular catalyst.

• $CM BANK(03968)$ -2.62% — The commercial bank pulled back as risk-off sentiment weighed on financial stocks and investors reassessed the outlook for credit growth and asset quality.

• $PING AN(02318)$ -5.51% — The insurer underperformed as investors reduced exposure to financial and cyclical large caps amid broad market de-risking.

• $ZIJIN MINING(02899)$ -4.86% — The mining heavyweight declined despite strength in selected commodity-related sectors, as broad risk-off positioning outweighed support from precious metals.

• $CHINA LIFE(02628)$ -4.21% — The insurer faced selling pressure alongside the wider financial sector, reflecting weaker risk appetite and valuation concerns.

• $AIA(01299)$ -3.16% — The insurance group retreated as investors trimmed exposure to financial stocks amid rising global yields and market uncertainty.

• $BYD COMPANY(01211)$ -7.31% — The electric vehicle leader was the weakest among tracked names. The sharp decline reflected heavy selling in growth and technology-related stocks, compounded by broader risk-off sentiment across Hong Kong equities.

Performance is subject to market volatility.

4. Singapore Market – STI falls 1.83% as large-cap stocks sell off while niche sectors rally

The $Straits Times Index(STI.SI)$ declined 1.83% and closed at 5,695.93, as broad risk-off sentiment across global markets pressured Singapore’s large-cap stocks. Persistent US inflation readings lifted expectations for higher Fed rates, pushing Treasury yields higher and weighing on rate-sensitive sectors. Meanwhile, niche small-cap sectors staged sharp rallies, creating a clear divergence between large-cap weakness and selective stock-specific gains.

Top Sectors:

Publishing (+100.00%), Commercial Printing (+31.11%), and Internet & Direct Marketing Retail (+16.67%).

9 Popular Stocks:

• $DBS(D05.SI)$ -2.10% — Singapore’s largest bank declined as rising US long-end Treasury yields pressured valuations and markets priced a slower expansion in net interest margins amid global rate volatility.

• $OCBC Bank(O39.SI)$ -2.08% — The banking heavyweight tracked the broader sector sell-off, as elevated Fed hike expectations clouded the NIM outlook and risk-off sentiment weighed on regional loan and asset quality expectations.

• $SGX(S68.SI)$ -3.95% — The national carrier underperformed the STI as crude oil surged more than 8% for the week, lifting jet fuel cost forecasts and compressing projected operating margins despite steady travel demand.

• $Wilmar Intl(F34.SI)$ -2.88% — The diversified conglomerate faced valuation pressure as higher discount rates reduced the present value of its long-duration real estate, infrastructure, and energy asset cash flows.

• $CapitaLandInvest(9CI.SI)$ -2.26% — The property developer declined as higher global borrowing costs dampened buyer demand and raised financing expenses for residential and commercial projects.

• $CityDev(C09.SI)$ -5.12% — The week’s largest loser among tracked names. Rising yields pressured real estate valuations, while higher debt servicing costs and a softer property demand outlook triggered heavier selling.

• $DFIRG USD(D01.SI)$ -3.31% — The global real estate investment management firm came under pressure as rising risk-free rates widened capitalisation rate assumptions, weighing on property portfolio valuations.

• $Frasers Property(TQ5.SI)$ -2.94% — The defence and industrial technology firm was caught in broad risk-off liquidation of mid-cap industrial names, with no company-specific negative news identified.

• $Top Glove(BVA.SI)$ +0.225% — A major outperformer against the broader market decline, supported by stock-specific catalysts and rotation into niche small-cap defensive holdings.

Performance is subject to market volatility.

5. Australia Market – ASX 200 falls 2.94% as global risk-off sentiment pressures miners, banks and retailers

The $S&P/ASX 200(XJO.AU)$ fell 2.94% and closed at 8,741.2, as Australian equities tracked broad risk-off sentiment across global markets. Persistent US inflation boosted expectations for Fed rate hikes and lifted global bond yields, while a stronger US dollar pressured cyclical large caps. The sell-off was broad-based, although selected property, software, and energy names bucked the market pullback.

Sectors:

Multi-Family Residential REITs (+8.21%), Home Improvement Retail (+4.52%), and Systems Software (+4.41%).

9 Popular Stocks:

• $BHP GROUP LTD(BHP.AU)$ -2.22% — The mining heavyweight declined as a stronger US dollar and mixed industrial metal pricing pressured commodity equities.

• $Rio Tinto Ltd(RIO.AU)$ -4.32% — Underperformed BHP on relatively weaker iron ore sentiment and broader de-risking across global mining equities.

• $COMMONWEALTH BANK OF AUSTRALIA(CBA.AU)$ -3.88% — Australia’s largest bank faced valuation compression as rising global long-end yields clouded the domestic net interest margin outlook, while investors priced in slower credit growth and heightened risk caution.

• $Macquarie(MQG.AU)$ -2.63% — The global financial services conglomerate was dragged lower by weaker risk appetite across global asset markets. Concerns over fundraising and asset management fee headwinds offset its diversified business strengths.

• $WESFARMERS LTD(WES.AU)$ -6.32% — One of the week’s notable laggards. Its retail and industrial segments faced pressure from softening domestic consumer spending expectations and rising input costs, triggering a sharp downward re-rating.

• $CSL LIMITED(CSL.AU)$ -3.00% — The biotech leader was caught in broad defensive stock liquidation. No company-specific negative news drove the move, with investors trimming exposure to large-cap defensive names amid portfolio rebalancing.

• $WOODSIDE ENERGY GROUP LTD(WDS.AU)$ +3.24% — The standout large-cap performer, benefiting from the sharp weekly rally in crude oil prices, which lifted forecasts for energy earnings and free cash flow.

• $FORTESCUE LTD(FMG.AU)$ -3.19% — Iron ore price volatility and risk-off positioning weighed on the pure-play iron ore miner.

• $WOOLWORTHS GROUP LTD(WOW.AU)$ -4.51% — Investors reassessed domestic consumer margins, with concerns over persistent grocery inflation and slowing retail volumes pressuring the staple retailer.

• $SANTOS LIMITED(STO.AU)$ -4.63% — Despite higher oil prices, the stock underperformed Woodside, weighed down by project cost concerns and relative liquidity-driven selling.

Performance is subject to market volatility.

The Week Ahead: Sep 14- 18

Monday, Sep 14

• G20 Energy Ministers Meeting in Houston — Energy security discussions and other topics.

Tuesday, Sep 15

• U.S. Senate procedural vote to advance the CLARITY Act.

Wednesday, Sep 16

• U.S. Retail Sales & Food Services Sales for August.

• Federal Reserve FOMC Monetary Policy Decision.

Thursday, Sep 17

• U.S. Residential Housing Statistics for August.

Friday, Sep 18

• Bank of Japan Monetary Policy Decision.