OCBC Investment Research
Date of Report: 24 September 2025

Global Markets Stumble Amid Fed Uncertainty as Gold Surges: In-Depth Equity and Sector Insights for Investors

Market Overview: Fed Signals, Gold Hits Record, and Sector Divergences

The recent trading session saw a pullback in global equity markets as investors digested Federal Reserve Chair Jerome Powell’s cautious remarks on rate cuts. While US equity indices retreated from all-time highs, gold soared to fresh records, signaling heightened risk aversion and uncertainty over the interest rate outlook.

• Technology stocks led declines on Wall Street, with profit-taking in AI names following Powell’s comments that offered little clarity on rate cut timing.
• Gold reached nearly US\$3,800 per troy ounce, reflecting demand for safe-haven assets as equities wavered.
• US Treasury yields reversed a five-session climb, with the 2-year falling to 3.59% and the 10-year dropping to 4.12%.
• Attention now shifts to the upcoming core PCE price index, a key inflation gauge, with expectations for a 0.2% monthly rise to keep annual core inflation at 2.9%.
• Powell’s observation that “equity prices are fairly highly valued” has reignited debate over tech sector valuations, drawing parallels to the dot-com era.

Regional Market Recap: US, Europe, and Asia

United States

• The S&P 500 closed down 0.55%, despite reaching a new intraday high earlier in the session.
• The Nasdaq Composite fell 0.95%, pressured by declines in Nvidia and Oracle. The Dow Jones Industrial Average shed 88.76 points (-0.19%).
• Tech sector valuations now rival dot-com boom levels based on the Shiller CAPE ratio, prompting concerns about sustainability and energy infrastructure for AI growth.

Europe

• The Stoxx Europe 600 Index gained 0.28%, led by consumer products, autos, and retail sectors. Health care stocks lagged.
• Wind energy shares surged after Orsted AS was cleared to resume a major wind farm project.
• The eurozone’s private sector grew at its fastest pace in 16 months, with German services offsetting French weakness. Sentiment was further boosted by a major Nvidia-OpenAI deal and robust iPhone demand.

Asia

• The MSCI Asia Pacific Index (ex-Japan) edged up 0.1%, with chipmakers TSMC and Samsung Electronics offsetting losses in China and Hong Kong.
• Japan’s markets were closed for a holiday.

Singapore Market Snapshot: Indices, Volumes, and Movers

Other key Singapore market stats:

• Volume: 1,451.6 million (down 22.7%)
• Turnover: S\$1,404.6 million (down 9.6%)
• 52-week range: 3,372.4 – 4,375.3
• Gainers: 263 | Losers: 300

World Indices and Commodities Table

Broker Coverage: Latest OCBC Investment Research Reports

Stay up to date with key rating actions and sector outlooks from OCBC’s recent coverage. Below is a summary of the most recent reports, including rating, fair value, and thematic focus.

Top Singapore Stocks by Market Capitalisation: Valuations, Yields, and Recommendations

A snapshot of Singapore’s largest listed equities, including key metrics and analyst recommendations:

Key Sector and Stock Observations

• Singapore’s banking sector (DBS, OCBC, UOB) stands out for stability, high dividend yields (above 5%), and strong buy/hold recommendations.
• Telecommunications (Singtel) is flagged for its multiple growth pillars and robust analyst support.
• REITs and property trusts see strong dividend yields (often >5%) and are well represented in analyst buy/hold calls.
• Industrial and infrastructure plays (e.g., ST Engineering, Keppel, Yangzijiang Shipbuilding) provide differentiated exposure with generally healthy fundamentals and moderate valuations.
• Consumer, energy, and logistics names such as Thai Beverage, Sembcorp Industries, and Mapletree trusts round out the blue-chip landscape with resilient earnings profiles.

Conclusion: Navigating Uncertainty with Diversification and Valuation Discipline

With global equities pausing at record highs amid central bank uncertainty and sector-specific risks, investors are urged to remain vigilant about valuations and thematic positioning. The Singapore market continues to offer a compelling mix of growth, yield, and defensive characteristics, anchored by heavyweight financials, quality REITs, and select sector leaders.
Stay tuned to further economic data and policy signals, especially as inflation, interest rates, and sector rotations drive near-term volatility and medium-term opportunity.

Important Notes and Analyst Ratings

• OCBC Investment Research ratings are medium-term (12 months) and are based on total expected returns (excluding dividends) for most stocks, and including dividends for REITs and business trusts.
• BUY: Expected returns >10% (for small caps, >30%); HOLD: returns between +10% and -5% (small caps, within ±30%); SELL: returns less than -5% (small caps, <-30%).
• Ratings tables, disclosures, and recommendations are provided for information only and should not substitute for personalized investment advice.