U.S. stocks rose to record highs Tuesday, driven by strong corporate earnings and easing oil prices.

Major indexes surged:
S&P 500 +0.81% (record 7,259.22)
Nasdaq +1.03% (record 25,326.13)
Dow +0.73% (up 356 points)
Oil prices fell, boosting equities:
WTI −3.9%, Brent −3.99%
Geopolitics tensions in the Strait of Hormuz, a fragile U.S.–Iran ceasefire held, reducing market fears.
Earnings strength: ~85% of S&P 500 companies beat expectations, lifting sentiment.
Winners: DuPont, Anheuser-Busch InBev (+8% each)

AMD (+7%): Strong guidance and earnings beat expectations.
Super Micro Computer (+19%): Profit outlook far exceeded forecasts.
DaVita (+3%): Beat earnings and raised full-year guidance.
Arista Networks (−14%): Slight margin miss hurt sentiment.
Klaviyo (−18%): Weak income outlook and CFO departure.
Lucid (−2%): Larger-than-expected loss and revenue miss.
Skyworks (−3%): Mixed guidance despite decent outlook.
Devon Energy (−2%): Slight earnings and production miss.
Jacobs Solutions (−2%): Fell despite beating estimates and raising guidance.

Palantir Technologies saw its stock decline despite delivering a very strong quarter, as investor concerns centered more on valuation than business performance. Revenue surged about 85% year-over-year, with exceptionally high efficiency reflected in a Rule of 40 score around 145%, and continued robust demand—particularly from government and defense clients. However, its premium valuation, including a high price-to-earnings ratio of roughly 85 and elevated cash-flow multiples, raised concerns about sustainability. Sentiment was also weighed down by intensifying AI competition from players like Anthropic, broader pressure on tech and software valuations, and some uncertainty around the visibility of government contracts. Additionally, a slight slowdown in commercial growth and lingering questions about long-term scalability and competitive positioning contributed to the cautious market reaction.

Small-cap stocks rallied strongly in April and could continue to outperform, according to Bank of America. The Russell 2000 surged more than 12%, beating the S&P 500, which rose 10.4%, marking its best monthly gain since 2020. This momentum is expected to persist, supported by improving earnings, a recovery in manufacturing activity, and positive earnings revisions that are lifting investor sentiment. Targeted ETFs such as SMLF ETF, JSML ETF, and AVDV ETF provide focused exposure to profitable companies and those with rising earnings, with active management potentially outperforming passive strategies. Overall, small caps are viewed as an inefficient yet opportunity-rich segment of the market, offering attractive upside potential.
Venture Corporation reports revenue of $628.5 mil for 1QFY2026, up 1.9% y-o-y

CSE Global secures $271.2 mil worth of new orders in 1QFY2026, 74.6% up y-o-y

Centurion Accommodation REIT’s 1QFY2026 NPI of $37.5 mil outperforms IPO forecast by 2.4%

Ley Choon’s constructions and engineering subsidiary secures $35.6 mil worth of contracts

FLCT reports 1HFY2026 DPU of 2.95 cents, 1.7% lower y-o-y

The Paragon acquisition highlights a broader shift in Singapore’s REIT sector toward consolidation led by larger players. Bigger REITs such as CapitaLand Integrated Commercial Trust (CICT) hold a strong advantage when it comes to acquiring and upgrading assets, allowing them to emerge as dominant players in the market. This reflects a wider industry trend in which more mergers and take-private deals are expected, while smaller REITs may struggle or gradually be phased out due to pressures from high interest rates and inflation. In this environment, large REITs are increasingly acting as consolidators, acquiring assets and even weaker rivals to strengthen their portfolios.
CICT’s ability to acquire Paragon can be attributed to its strong financial capacity and diversified asset base, which enable it to absorb costly asset enhancement initiatives (AEIs) with less strain. It also benefits from capital recycling strategies that shift investments into higher-yield assets. At the same time, broader market dynamics show sponsors restructuring or privatizing underperforming REITs, alongside increased acquisition activity from major property groups such as CapitaLand, Frasers Property, and Hongkong Land. Looking ahead, further consolidation appears likely, with larger and more resilient REITs playing a critical role in sustaining the sector. Ultimately, the REIT market is entering a phase where scale, financial strength, and asset quality will determine the winners.

Analysts remain mixed on Mapletree Logistics Trust (M44U) following its weaker fourth-quarter results, which saw a 7% decline in distribution per unit (DPU). While OCBC Group Research and DBS Group Research maintain positive “buy” calls, and CGS International keeps an “add” rating, all three have trimmed their target prices and DPU forecasts due to foreign exchange headwinds, slower rental growth, and the absence of divestment gains. Despite these challenges, OCBC notes that valuations have become attractive, with yields nearing 6%, while DBS sees medium-term upside driven by asset recycling and development strategies, alongside stable underlying performance. Analysts also highlight that MLT’s largely domestic revenue base limits exposure to global risks such as the US-China trade tensions and Middle East conflict, although China’s delayed recovery and flat rental reversions may weigh on sentiment. Overall, the REIT is viewed as fundamentally stable with moderate growth potential, supported by resilient markets like Singapore, Japan, and Hong Kong.

Malaysian corporates reported a mix of stable outlooks, strategic restructuring, and earnings pressures across sectors. Public Bank Bhd said its asset quality remains stable with no immediate impact from the Middle East conflict, while CIMB Group Holdings Bhd is divesting its Thai auto financing portfolio to exit non-core businesses and reallocate capital. Gamuda Bhd secured approval for an upgraded hybrid hydro-solar project in Sabah, expected to generate significant long-term revenue, while Telekom Malaysia Bhd extended its network services deal with Maxis Bhd to expand coverage. On the corporate front, NexG Bhd denied governance concerns, and Capital A Bhd is exploring expansion into hospitality. Earnings were mixed, with Malaysian Pacific Industries Bhd reporting lower profit despite higher revenue, while Hartalega Holdings Bhd posted stronger profits on cost controls despite weaker revenue. Meanwhile, companies such as Magni-Tech Industries Bhd and Rivertree STF Synergies Bhd are expanding into property, Sealink International Bhd secured insurance compensation, and Ann Joo Resources Bhd won a contract in energy storage. Overall, the updates reflect cautious resilience, ongoing portfolio reshaping, and selective growth initiatives amid a challenging economic environment.

Hong Kong equities declined as geopolitical tensions between the US and Iran weighed on sentiment, with the Hang Seng Index falling 0.8% to 25,898, alongside drops in the HSCEI and HSTECH indices. Market activity remained moderate amid the suspension of southbound trading during the Mainland May Day holiday. Among major stocks, HSBC Holdings tumbled over 5% due to higher-than-expected provisions despite in-line earnings, while CK Hutchison Holdings jumped after announcing a major stake sale. Tech heavyweights such as Tencent, Alibaba Group, and Meituan declined modestly, alongside EV and chip stocks like BYD Company, Xiaomi, and SMIC. However, CATL outperformed with strong gains following a target price upgrade. Broader tech and AI-related shares were mixed to weaker, with notable declines in smaller names, while select stocks like Baidu and Hong Kong Exchanges and Clearing posted gains. Overall, the market reflected cautious sentiment amid geopolitical uncertainty, with selective stock-specific movements.

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