To The Moon

Last Week's Recap

The US Market - S&P 500 notched its ninth consecutive day of gains

• U.S. stocks capped off a strong week with their best rally in months, fueled by robust corporate earnings and better-than-expected labor market data. The S&P 500 notched its ninth consecutive day of gains — the longest winning streak in 20 years — as investor sentiment improved.

• All three major indexes posted their second straight weekly gain. The S&P 500 climbed 2.9%, the Dow Jones Industrial Average advanced 3%, and the Nasdaq Composite added 3.4% for the week.

• April saw dramatic swings across markets. Equities initially struggled amid a weakening GDP outlook and intensifying trade friction. But momentum shifted later in the month as some tariffs were eased and earnings results broadly outperformed expectations, helping the Nasdaq finish April in positive territory.

• While optimism is growing that the worst of the "tariff tantrum" may be behind us, recession concerns haven’t completely faded. Analysts caution that May tends to be a seasonally weaker period for markets, with macro headwinds and policy risks still lurking.

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The US Sectors & Stocks - MSFT surged 11%

• The S&P technology sector experienced significant gains with a 4.3% up, thanks to robust earnings from companies like Microsoft and Meta Platforms. Followed by the industrial and communication service sectors, each climbing 4% for the week.

• Apple (AAPL) reported solid Q2 FY2025 results, with revenue rising 5% year-over-year to $95.4 billion. The company increased its quarterly dividend by 4% and unveiled a new $100 billion stock buyback program. However, shares fell 3.7% as CEO Tim Cook warned of $900 million in additional costs from tariffs in the current quarter if policies remain unchanged.

• Microsoft (MSFT) crushed market expectations in its fiscal Q3, with revenue jumping 13% to $70.1 billion. Growth in cloud computing and artificial intelligence services fueled gains. The stock surged by 11% over the week.

• Meta Platforms (META) delivered strong first-quarter results, with earnings per share up 37% and revenue increasing 16% to $42.3 billion, beating estimates. Meta also raised its Q2 revenue guidance and lifted capital expenditure projections, pushing its stock up 9% over the week.

• Amazon (AMZN) earnings surged 62% vs. a year earlier, easily beating consensus. Revenue climbed 9%, slightly topping but Amazon Web Services revenue slightly missed targets. The e-commerce and cloud-computing giant also guided lower on operating income for the current Q2. CEO Andy Jassy said he's "optimistic" that Amazon could emerge stronger from the tariff uncertainty.

• On Saturday, longtime Berkshire Hathaway (BRK-B, BRK-A) CEO Warren Buffett said he plans to recommend to the company's board that Greg Abel take over at the end of the year. Abel was named Buffett's successor back in 2021. On Friday, Berkshire Hathaway stock closed at a record high. Shares have gained over 17% this year.

• Duolingo (DUOL) jumped 27% for the week, after reporting better-than-expected Q1 results and raising its revenue forecast for the next quarter. The language learning app was raised price targets by several analysts.

• Spotify (SPOT) missed Q1 earnings and revenue targets and slightly lowered Q2 revenue guidance. Despite that, the stock hit a new high after Apple approved its U.S. app update, allowing price displays and third-party subscription payments.

• Starbucks (SBUX) missed fiscal Q2 results, with U.S. comps down for a fifth straight quarter. CEO Brian Niccol said the results were "disappointing" and the stock fell by 7% over the week.

• Take-Two Interactive (TTWO) fell 6.66% after delaying the release of Grand Theft Auto VI to 2026.

• Pfizer (PFE) rose 5% as earnings grew 12% and the company reaffirmed its full-year outlook, while reporting progress toward $4.5 billion in planned cost savings.

• Eli Lilly (LLY) declined nearly 7% despite a 29% increase in earnings and 45% revenue growth. The drop followed a lowered full-year profit outlook and concerns that revenue would have missed without a one-time payment.

• Super Micro Computer (SMCI) sank 7.6% after issuing preliminary Q1 figures that fell short of expectations, citing weaker-than-anticipated EPS and revenue guidance.

Hong Kong Market - HSI surges 2.4%

• The Hang Seng Index (HSI) rose 2.4% this week, driven by robust gains in the technology and insurance sectors. Optimism surrounding Sino-US trade talks and strong earnings from U.S. tech giants contributed to the positive market sentiment.s

• AIA Group (1299.HK) saw a notable increase in new business value by 13%, reflecting strong growth in annualized new premiums and improved profit margins. AIA stock price increased 7.4%, reflecting investor confidence in its growth prospects.

• HSBC Holdings (0005.HK) announced a new stock buyback plan despite a drop in pre-tax profits, indicating confidence in its long-term growth strategy.

• China Life Insurance's net profit jumped 39.5%, boothing its stock price up 3.6% last week.

Singapore Market - The MAS said U.S. tariffs will have multiplier effects

• Singapore's Straits Times Index (STI) rose 0.6% this week, closing at 3,845.14, supported by gains in major banking stocks and resilience in the face of weak factory activity data.

• Singapore’s overall factory activity fell sharply last month, retreating into contraction territory and mirroring the regional pullback, as US President Donald Trump’s “Liberation Day” tariffs began to exact a toll on manufacturers.

• U.S. tariffs will have multiplier effects that will "generate a broader negative income and demand shock to the Singapore economy", the Monetary Authority of Singapore said in its macroeconomic review released on Monday.

• Wilmar International Ltd (F34.SI) reported strong Q1 financial results, with net income reaching USD 343.89 million, driving its stock higher.

• Oversea-Chinese Banking Corp. (O39.SI) saw steady gains following the listing of $30 million worth of zero coupon bonds and mixed Q1 earnings expectations.

The Week Ahead

Macro Factors - FOMC on the corner

• This week, all eyes on Wall Street will be on the Federal Reserve. The Federal Open Market Committee (FOMC) is set to meet on May 6–7, and while no change to the federal funds rate is expected, Fed Chair Jerome Powell’s post-meeting press conference will be closely scrutinized for any clues on the timing of potential rate cuts. Across the Atlantic, the Bank of England is also due to announce its monetary policy decision, with markets increasingly pricing in the possibility of a rate reduction.

• Following Friday’s jobs report, expectations for a June rate cut dropped notably. According to the CME FedWatch Tool, the odds of a 25-basis-point cut at the Fed's June meeting fell to 37%—a steep drop from 55% the previous day.

• Investors will be paying close attention to key economic data releases this week, including Thursday’s jobless claims and Monday’s manufacturing activity report. Meanwhile, the Treasury is expected to confirm the timeline for when the U.S. will hit its debt ceiling.

• As May trading gets underway, some analysts are challenging the old market adage “sell in May and go away.” With policy decisions driving sentiment more than seasonality, tariff tensions and central bank moves are proving to be the real weather-makers on Wall Street.

Earnings

• So far this earnings season, analysts have lowered second quarter EPS estimates for S&P 500 companies by 2.4% — a larger-than-usual reduction as companies weigh concerns over tariffs and a potential economic slowdown, according to FactSet.

• About 90 S&P 500 companies are slated to report this week. Palantir Technologies and Vertex Pharmaceuticals announce results on Monday; AMD, Arista Networks, and Electronic Arts release earnings on Tuesday; Uber Technologies and Walt Disney do the same on Wednesday; ConocoPhillips, Match Group, and Monster Beverage report their earnings on Thursday.