OCBC Investment Research
Date of Report: 11 September 2025
US Rally Resumes: Oracle, AI Stocks Propel Markets Higher as Inflation Cools; Asia Tech Soars, Singapore Equities Surge

Global Market Pulse: Record Highs Driven by Tech Surge and Cooling Inflation

Global equity markets roared to new heights as optimism over AI, robust tech earnings, and surprisingly soft inflation data fueled investor risk appetite. The S&P 500 and Nasdaq notched record closes, while Asia Pacific indices surged to their highest levels in years. Investors are now positioning for potential rate cuts from the Federal Reserve, with inflation and labor market data tilting market sentiment toward an easing cycle.

United States: Oracle Leads AI-Fueled Rally as Inflation Eases

The US equity landscape was dominated by a historic surge in Oracle shares, which soared 36%—the company’s largest one-day gain since 1992. This move reflected exceptional demand from AI companies for Oracle’s cloud services, propelling its market cap to \$922 billion, just behind Tesla and leapfrogging JPMorgan Chase. While Oracle powered the S&P 500 and Nasdaq to record highs, a sharp decline in Apple shares weighed heavily on the Dow Jones Industrial Average, which does not include Oracle among its constituents.

• Softer-than-expected Producer Price Index (PPI): Wholesale prices fell 0.1% in August, and core PPI also declined by 0.1%—both surprising markets that expected a 0.3% increase. This marked the first drop since April and, together with subdued jobs data, reinforced expectations for aggressive interest rate cuts. Treasury yields fell, with the 10-year note dipping to 4.031%.
• Gold soared to a new record: Gold futures closed at \$3,643.60 per troy ounce on rate-cut expectations and geopolitical tensions.
• Sector performance: Out of the S&P 500’s 11 sectors, six declined, led by consumer discretionary (-1.58%) and consumer staples (-1.06%). AI-related stocks, however, delivered the strongest gains, lifting the S&P 500 by 0.3% to its 23rd record high this year.
• Market breadth: More stocks declined than advanced on the S&P 500, highlighting selectivity in the rally.
• Outlook: Analysts remain bullish, with S&P 500 targets as high as 6,700 by year-end and 7,300 by end-2026, though valuations remain elevated.

Asia Pacific: Technology Powers Multi-Year Highs

Asian equities mirrored Wall Street’s exuberance. The MSCI Asia Pacific Index surged 1.1% to levels last seen in February 2021, with tech-driven markets in South Korea and Taiwan hitting fresh record highs. Oracle’s strong cloud business outlook further boosted regional tech sentiment.

• Hong Kong and Singapore: Both markets advanced over 1%. Chinese shares underperformed after a military parade and a robust August rally dampened sentiment.

Singapore Market Overview: Straits Times Index Shines

Singapore’s Straits Times Index (STI) climbed 1.1% to 4,346.5, near its 52-week high. Financials led the charge, with the FTSE ST Financials index up 1.8%. However, real estate and REITs slightly underperformed. Market turnover increased by almost 20%, while volume fell by 5.5%, reflecting a rotation toward higher-value trades.

Gainers/Losers: 301 stocks advanced, while 250 declined. The STI’s 52-week range stood at 3,372.4 to 4,355.8.

Singapore Dollar, Commodities, and FX Snapshot

Latest Research Highlights: Company and Sector Updates

A comprehensive suite of research insights covers major companies across Hong Kong, China, and Singapore. Below is a summary of recent ratings and target prices for top stocks:

Singapore STI Stocks: Market Capitalisation and Valuation Snapshot

Below is a detailed table of STI constituents, ranked by market capitalisation, with key financial metrics and recommendations. This offers investors a comprehensive view of Singapore’s blue-chip landscape.

Conclusion: Optimism Remains but Eyes on Valuation and Policy Shifts

Global equity markets are enjoying a potent mix of technology-driven momentum and supportive macro trends. With inflation showing signs of cooling and monetary easing on the horizon, bullish sentiment prevails. However, investors should remain mindful of elevated valuations and sector divergences, particularly as policy and geopolitical risks remain in play. The Singapore market, with its robust financials and select sectoral opportunities, stands out as a resilient and attractive destination for capital.

OCBC Investment Research’s comprehensive coverage provides timely insights and actionable recommendations for navigating these dynamic markets.