What happened?
In this week’s Weekly Market Review in partnership with Securities Investors Association Singapore (SIAS), we discuss key developments in the global equity market and also share more about Nvidia:
Watch the video to learn more about what we are looking out for this week.
Weekly Market Review
2:08 – Macro Update
- The S&P 500 saw modest gains last week, while the Dow Jones increased by 0.9%, reaching a record high. Nasdaq declined by 1%, partly due to Nvidia’s performance.
- There is a rotation from growth stocks into value stocks, represented by the Dow Jones and STI.
- The US core PCE inflation held steady at 2.6%, matching July’s level. This data supports expectations for potential Fed interest rate cuts in September.
5:08 – Singapore market updates
STI Top performers:
STI worst performers:
6:52 – Nvidia
- Nvidia reported exceptional earnings, with revenue reaching $30 billion for the quarter, surpassing market expectations.
- This was largely driven by explosive growth in its data centre segment, which achieved $26.3 billion, more than double the figure from the same quarter last year. The data centre segment now constitutes 87% of the company’s revenue.
- The company’s gross profit margin improved, rising to 77%, reflecting efficient revenue generation.
- Nvidia generated a substantial free cash flow of $28 billion in the first half of the fiscal year, already surpassing the previous year’s full fiscal figure.
- Despite the strong earnings, Nvidia’s share price dropped about 10% due to several investor concerns.
- The upcoming Blackwell chip, which is expected to further revolutionise AI processing, is facing potential delays in its launch.
- Nvidia’s guidance for next quarter’s revenue was $32.5 billion, in line with market expectations but not exceeding the upper range of analyst forecasts, as it had in previous quarters. This signaled to some investors that the company’s rapid growth could be slowing.
- Nvidia’s earnings were a major driver of the overall NASDAQ decline last week, contributing to a broader rotation out of growth stocks and into value stocks.
17:46 – Technical Analysis
Dow Jones Technical Analysis
- New all-time high of 41,585 points
- The next resistance is expected at 42,000 points.
- MACD and RSI shows positive momentum, suggesting further upward movement.
S&P 500 Technical Analysis
- The S&P 500 is 0.38% away from its all-time high in July.
- Key catalysts to watch include non-farm payroll data and the upcoming Federal Reserve rate decision in September.
- RSI shows a healthy reading of 61, with room to move up before hitting the overbought mark of 70.
NASDAQ Composite Technical Analysis
- The NASDAQ Composite is 5.4% away from its all-time high, with weaker momentum compared to other indices. This was due to the drag from Nvidia and tech earnings.
- MACD and RSI readings suggest slowing momentum, which explains its underperformance in August.
STI Technical Analysis
- The STI gained 1.6% last week, continuing its recovery toward the all-time high of 3,509 points in July.
- Good chance of challenging or testing the recent high on 15 July at 3,509 points.
- The momentum reading on the MACD indicator is looking very positive. The RSI is strong at 65 but still has some room to move up further towards the 70-point mark which is the overbought level.
What to look out for this week
- Monday, 2 Sep: SSB application opening date, US stock market closed
- Thursday, 5 Sep: Nio earnings
- Friday, 6 Sep: US Nonfarm Payroll data
Get the full list of Singapore stocks, REITs and ETFs with upcoming dividend payments with our dividend calendar.
Sign up for our free newsletter to get market insights delivered to your mailbox every Sunday!
