Last Week's Recap
The US Market - Trade Talks on edge
The U.S. stock market experienced a relatively quiet week, with major indexes posting modest declines. The market sentiment was influenced by ongoing trade negotiations, corporate earnings reports, and sector-specific developments, reflecting a cautious yet optimistic outlook among investors.
The talks with Chinese officials follow the U.S. and United Kingdom reaching a preliminary trade deal. Investors hope this will lead to more agreements being reached quickly.
The Fed maintained the funds rate at 4.25% to 4.5%, with Chair Jerome Powell emphasizing a cautious "wait and see" approach. He highlighted the importance of being data-dependent.
Adding to the uncertainty, Treasury Secretary Scott Bessent warned on Friday that the government may run out of cash and exhaust extraordinary funding measures by August, potentially reigniting debt ceiling concerns.
$Bitcoin(BTC.USD.CC)$ rallied above $100,000 for the first time since February, moving above $104,000 at one point, as Trump trade optimism fueled a risk-on trade.
The US Sectors & Stocks - Earnings shape market moves
The industrial sector outperformed this week with a 1.1% gain, while healthcare lagged sharply, dragged down by disappointing results from major players. Eli Lilly (LLY) slashed its full-year profit forecast due to acquisition-related charges, despite beating Q1 estimates, sending shares down 10%. Vertex Pharmaceuticals (VRTX) tumbled 15% after missing on revenue, although it raised the low end of its full-year outlook.
$Alphabet(GOOGL)$ slid over 7% on concerns Apple (AAPL) may integrate AI-powered search options into Safari, potentially bypassing traditional engines like Google’s.
$Walt Disney(DIS)$ soared nearly 15% after topping Q2 expectations and announcing a new theme park project on Abu Dhabi’s Yas Island, in partnership with developer Miral.
$AppLovin Corporation(APP)$ surged nearly 15% following a strong Q1 beat and plans to divest its gaming unit to TripleDot Studios.
$Hims & Hers Health Inc.(HIMS)$ jumped 18% despite soft Q2 guidance, as Q1 revenue more than doubled year-over-year.
$Uber(UBER)$ delivered an earnings beat but missed on revenue; the stock dipped slightly. Rival Lyft (LYFT) posted a surprise profit and unveiled a $500 million buyback, sending shares soaring nearly 30%.
$Advanced Micro Devices(AMD)$ rallied on better-than-expected Q1 results and optimistic AI chip prospects. ARM Holdings (ARM) beat March-quarter estimates but guided lower for June, pushing shares down. News that Trump may roll back export restrictions on AI chips gave an extra boost to AMD and Nvidia (NVDA).
$Coinbase Global, Inc.(COIN)$ announced a $2.9 billion acquisition of crypto derivatives platform Deribit, amid broader volatility in crypto markets.
$Trade Desk Inc.(TTD)$ rocketed more than 30% after reporting EPS of $0.33 on $616 million in revenue, up 25% year-over-year.
Hong Kong Market - HSI climbed amid mixed market signals
$HSI(HSI)$ rose by 1.6% over the week, driven by gains in select sectors. The market's movement was influenced by investor reactions to earnings reports and strategic announcements from major companies.
$SMIC(00981)$ posted a significant increase in first-quarter net profit, yet its stock declined due to cautious guidance for the next quarter, reflecting market concerns over future revenue and margin pressures.
$HUA HONG SEMI(01347)$ experienced a sharp drop in stock price following a significant decline in first-quarter net profit, impacted by increased R&D expenses and exchange losses.
Singapore Market - $Straits Times Index(STI.SI)$ sees positive imapct amid US-UK trade deal
Singapore market experienced fluctuations last week, influenced by global economic events such as the US-UK trade deal and the US Federal Reserve's decision to keep interest rates unchanged. The Straits Times Index (STI) rose 0.81% over the week.
$ocbc bank(O39.SI)$ saw a 5% decline in net profit for the first quarter, primarily due to lower net interest income. Despite this, the bank's net profit of S$1.88 billion surpassed analysts' estimates.
$UOB(U11.SI)$ reported a net profit of $1.49 billion for 1QFY2025, slightly below the previous year and Bloomberg's estimate. Deputy chairman and CEO Wee Ee Cheong purchased 100,000 ordinary shares, signaling confidence in the bank's future.
Seatrium, SingPost, and DFI Retail Group experienced a 5% rise in their stock prices, driven by positive investor sentiment following the US-UK trade deal announcement.
Australian Market - ASX Edges Lower as Banks Lag
The Australian stock market ended a volatile week slightly lower, with the $S&P/ASX 200(XJO.AU)$ pressured by weaker performance in the banking sector. Disappointing results from Westpac and ANZ weighed on investor sentiment and dragged financial stocks down.
$Macquarie(MQG.AU)$ stood out with a 5.5% rise in annual profit, reaching A$3.72 billion, driven by solid performance in its asset management and banking divisions. The firm also expanded its smart metering footprint with a €1.06 billion acquisition of Scottish Power's Smart Metering Rental Business.
In M&A news, CoStar finalized its long-rumored $3 billion acquisition of real estate classifieds platform $DOMAIN HOLDINGS AUSTRALIA LT(DHG.AU)$ . Domain shares jumped to $4.38, while parent company $NINE ENTERTAINMENT CO HOLDIN(NEC.AU)$ rose to $1.58.
The Week Ahead
Macro Factors - Key inflation data and geopolitical risks
Investors head into the week with eyes firmly on fresh inflation data, as April’s Consumer Price Index (CPI) lands Tuesday, followed by the Producer Price Index (PPI) on Thursday. These reports will offer the first potential glimpse at how post-April 2 tariffs are filtering through consumer and producer prices. April retail sales and Friday’s University of Michigan consumer sentiment survey will also provide important reads on consumer health and confidence.
Economists forecast April CPI to rise 2.4% year-over-year, while core CPI is seen increasing 2.8%, both matching March’s figures. For the PPI, expectations are for a 2.5% annual rise, down from March’s 2.7%, with core PPI forecast at 3.1%, down from 3.3%.
Beyond inflation, markets will also monitor geopolitical tensions, including escalating conflict between India and Pakistan and continued uncertainty surrounding U.S. trade policy.
Earnings
On the earnings front, over 450 S&P 500 companies have now reported Q1 results, with nearly 80% topping EPS estimates and around 60% beating on revenue. This week’s key names include Walmart (WMT), Cisco Systems (CSCO), and Alibaba (BABA).
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