U.S. stock futures were little changed after a sharp sell-off on Wall Street driven by surging oil prices and disappointing earnings from major technology companies. Dow Jones futures slipped 11 points, S&P 500 futures were little changed, while Nasdaq-100 futures gained 0.1%. Earlier, the Dow had fallen more than 500 points (around 1%), marking its fifth decline in six sessions, while the S&P 500 dropped 1.2% and the Nasdaq plunged 2.2%, their worst one-day losses since June 23.
Oil prices spiked after reports that two Saudi oil tankers were struck in the Red Sea, with Brent crude climbing above US$100 per barrel for the first time since late May, up about 7%, while WTI crude gained around 6%. The surge in energy prices added to concerns over inflation and economic growth.
U.S. Treasury yields continue to trend higher, with the 10-year Treasury yield rising above 4.7% (4.699%), its highest level since January 2025, as escalating Middle East tensions pushed Brent crude above US$100 per barrel, fueling renewed inflation concerns. Rising government deficits, heavy global borrowing, and increasing demand for capital to fund AI infrastructure are also contributing to upward pressure on long-term interest rates.
Peter Boockvar of One Point BFG Wealth Partners believes the bond bear market that began in 2020–2021 is intact and expects the 10-year yield to retest 5%. A move to 5% would be psychologically significant, as the yield last reached 5.021% in October 2023 and had not traded above 5% since July 2007 before the global financial crisis.
A sustained rise above 5% could become a major headwind for equities by making bonds more attractive than stocks. However, despite the recent jump in yields, the S&P 500 remains only about 3% below its all-time high.
Analysts also stress that why yields are rising matters more than the level itself. If higher yields are driven by persistent inflation, stocks could face a sharper sell-off. However, if they reflect stronger productivity and economic growth, particularly from AI-driven investment, the stock market may eventually recover even if the 10-year yield reaches 5%.
Technology stocks led the market decline as Tesla tumbled nearly 15%, its worst daily performance since March 10, 2025, following an earnings miss, while Alphabet fell 7%, its biggest one-day decline since May 7, 2025, after raising its capital expenditure outlook.
Tesla’s Q2 results disappointed Wall Street despite strong revenue and vehicle deliveries. The company reported adjusted earnings of US$0.33 per share, well below the US$0.51 expected, while revenue beat expectations at US$28.24 billion versus US$25.71 billion. Its core automotive business remained strong, generating US$20.52 billion in revenue, up 23% year-on-year, with record deliveries of 480,126 vehicles, up 25% year-on-year.
Tesla shares fell nearly 10% after the earnings release, with the stock already down 25% year-to-date as investors worry about heavy capital spending on AI-related projects, including Cybercab robotaxis and the Optimus humanoid robot. However, Tesla said more than 120,000 Cybercabs are in production and Optimus production lines are being built.
Nvidia has signed a US$1.5 billion agreement with Amkor Technology to expand AI chip packaging and testing capacity in the United States. The deal includes a prepayment from Nvidia to support Amkor’s manufacturing expansion in Arizona, strengthening the domestic semiconductor supply chain.
The announcement pushed Amkor shares up about 15% in late trading as investors welcomed the partnership with Nvidia, the world’s leading AI chip company. The collaboration will focus on advanced chip packaging and test technologies for AI, a critical part of semiconductor production where chips are assembled and connected to other components.
Wall Street remains divided. JPMorgan lowered its target to US$445 but stayed neutral, while Mizuho cut its target to US$450 but remained positive. More bullish analysts include Piper Sandler (US$500), Stifel (US$508), and RBC (US$500), citing long-term potential from robotaxis, AI, and robotics. However, concerns remain over margin pressure, rising capital expenditure, and uncertainty around the timing of new AI-driven growth.
Separately, the Trump administration announced new tariffs on 60 countries, with duties ranging from 10% to 12.5%, replacing the temporary 10% global tariff. The new measures will cover more than 99% of U.S. trade.
In after-hours trading, Intel surged 9% after reporting Q2 revenue of US$16.1 billion, up 25% year-on-year, with adjusted earnings of US$0.42 per share beating expectations.
Robert Half dropped about 9% after posting weaker-than-expected second-quarter results, with earnings of US$0.26 per share matching forecasts and revenue of US$1.34 billion, slightly above the US$1.32 billion consensus. Boston Beer gained 2% after reporting Q2 revenue of US$568.3 million, edging past the US$566.7 million estimate, while reaffirming full-year earnings guidance of US$8.50–10.50 per share, compared with the consensus of US$9.38.
Cerebras shares rose about 5% after announcing a partnership with AMD to jointly develop next-generation AI systems. Under the agreement, Cerebras’ wafer-scale AI chips will be integrated into AMD’s Helios AI platform, with deployments in Cerebras data centers beginning later this year. Customers will also be able to configure AMD systems with Cerebras’ chips.
The partnership focuses on ultra-low latency AI inference, enabling faster AI responses. AMD and Cerebras claim their combined system can deliver 5 times more tokens per second per watt than competing solutions, highlighting the growing importance of speed and efficiency in AI workloads.
Cerebras has experienced significant share price volatility since its May IPO. The stock debuted at US$185, surged to US$386.34, fell below US$161 in late June, and was trading around US$220 after Thursday’s rally.
Earlier this year, Cerebras also secured a major contract with OpenAI to provide 750 megawatts of AI computing capacity through 2028, a deal valued at more than US$10 billion, reinforcing its position as a key player in large-scale AI infrastructure.
Investors are increasingly rotating from high-growth, high-beta stocks into defensive companies with stable earnings, dividends, and improving fundamentals. Kimberly-Clark (KMB) is highlighted as a potential long-term opportunity due to its strong consumer staples business, including brands such as Huggies, Kleenex, Cottonelle, and Scott, which remain resilient regardless of economic conditions.
The company’s outlook could improve further after the planned US$48.7 billion Kenvue deal, which would add major brands such as Tylenol, Neutrogena, and Listerine, while creating potential cost synergies through restructuring and efficiency improvements.
Biotechnology has emerged as one of the strongest-performing healthcare sectors this year, with investors remaining optimistic despite the recent rally. The SPDR S&P Biotech ETF (XBI) has gained nearly 80% over the past 12 months, while the iShares Biotechnology ETF (IBB) has risen more than 40%, outperforming the S&P 500’s 19% gain.
Investors are becoming more selective after the strong run-up. Revolution Medicines has been a standout performer, with shares up 130% this year after its pancreatic cancer drug showed positive Phase 3 results, doubling survival time and reducing the risk of death by 60% compared with conventional chemotherapy.
Merger discussions between CapitaLand Investment (CLI) and Mapletree Investments, two major Singapore property asset managers backed by Temasek Holdings, have stalled due to concerns over valuation, leadership structure, personnel changes, and weaker performance in some business areas. The talks, which had accelerated in 2025 after years of intermittent discussions, could still resume in the future.
CLI shares have fallen 8% this year, giving the company a market value of about US$9.6 billion (S$12.4 billion), while Mapletree was valued at around S$18.5 billion as of March. Temasek owns 54% of CLI and fully owns Mapletree.
A merger would have significantly reshaped Singapore’s REIT market. Together, the two groups support 8 Singapore-listed REITs — CLI with 5 REITs and Mapletree with 3 REITs — with a combined market capitalisation of more than US$44 billion.
Performance has been mixed. Assets exposed to China and India have struggled, while CapitaLand Integrated Commercial Trust (CICT), Singapore’s largest REIT, delivered double-digit returns over the past year. CLI has also faced challenges from the prolonged China property downturn and weaker global real estate deal activity.
Keppel DC REIT (KDC REIT) reported a solid 1HFY2026 performance, highlighting strong data centre demand and improving portfolio quality. For the first time, the REIT disclosed contracted power capacity utilisation of 95%, which management believes is a more meaningful measure than traditional occupancy because revenue is closely linked to power usage. Portfolio occupancy based on net lettable area was 92.5%, down from 95.6% previously due to a contract expiry at its Cardiff data centre; excluding Cardiff, occupancy would be 95.3%.
Around 75% of KDC REIT’s assets are colocation data centres, mainly in Singapore and Dublin. Management sees colocation exposure as a growth driver because shorter leases allow more opportunities for rental increases when contracts renew. The REIT also benefits from strong demand from hyperscalers, supported by their strong credit profiles and growing data centre needs.
Rental reversions were positive, reaching 10% for 1H2026 and 5% in Q2 2026. Stronger rental growth is expected in 2027–2028, although KDC SGP1 may be closed for redevelopment in 2027, resulting in lost rental income. KDC SGP1 contributed $16.5 million revenue in FY2025 against total revenue of $441 million.
Financially, DPU exceeded expectations, reaching 52% of full-year forecasts, helped by higher fees paid in units and lower taxes. Balance sheet remains healthy with aggregate leverage at 34% and $673 million debt headroom before reaching the 40% leverage limit. Cost of debt guidance is 2.6%–2.8%.
Key risks include weaker Guangdong data centre performance, potential rental growth moderation, higher financing costs, and the temporary income impact from KDC SGP1 redevelopment. However, Singapore remains a key growth market due to limited land, power constraints, strong digital infrastructure demand, and its position as a major regional data hub.
Singapore Post (SingPost) is in discussions with the government regarding possible support for its loss-making postal business, as shareholders questioned whether the company should be compensated for providing a national service rather than relying on declining postage revenue. The discussions remain confidential, and no decision has been announced.
SingPost’s financial performance remains under pressure. For FY2026, revenue fell 23.1% to S$376.1 million from S$489.1 million, mainly due to a 55.2% decline in international revenue and continued weakness in traditional mail volumes. Net profit dropped 75.2% to S$60.9 million, while underlying net profit was only S$10.7 million.
Among its business segments, only the property business remained profitable, generating S$45.2 million in operating profit. Some shareholders urged SingPost to divest loss-making mail and logistics operations and focus on its stronger property assets.
Management said it remains focused on achieving commercial sustainability and will retain SingPost Centre, believing the Paya Lebar mixed-use development has future upside potential. The company also highlighted its S$603.8 million cash balance, which may be used to repay upcoming obligations, including a S$100 million medium-term note due in March 2027 and S$250 million perpetual securities with an interest step-up in July 2027.
SingPost shares closed lower after the AGM.
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Indonesian stocks are approaching bull market territory after a strong rebound, supported by improving investor sentiment, stable credit outlook, and government efforts to restore confidence. The Jakarta Composite Index (JCI) rose as much as 1.5% to 6,430.76 points, extending gains from its early June low to 20%. Commodity stocks such as PT Amman Mineral Internasional and PT Barito Renewables Energy led the advance.
The recovery was helped by easing oil prices, Bank Indonesia’s 50-basis-point rate hikes in June, and S&P Global Ratings maintaining Indonesia’s credit rating and outlook. Bank Indonesia also kept its benchmark rate at 5.75% and introduced measures to attract capital inflows and support the rupiah. The rupiah strengthened more than 1%, while the 10-year bond yield fell over 10 basis points from recent highs.
Despite the rally, risks remain. The JCI is still down about 26% year-to-date, with concerns over market transparency, President Prabowo’s economic policies, and possible index reclassification by MSCI and S&P Dow Jones Indices. Foreign investors remain cautious, with overseas funds withdrawing US$161 million this month, although this is much lower than the more than US$1 billion outflow in June.
Analysts believe Indonesia could see stronger inflows if MSCI confirms the country remains in the emerging-market index, as many global investors are currently underweight Indonesian equities.
Asian markets showed mixed performance as Middle East tensions pushed Brent crude above US$95 per barrel, raising concerns that higher energy prices could reignite inflation. U.S. stocks weakened, with the Nasdaq falling 0.57%, while Hong Kong equities extended their rebound.
The Hang Seng Index (HSI) closed at 25,210, up 318 points (+1.28%), with turnover of HKD233.48 billion. The Hang Seng Tech Index gained 0.65% to 4,698, while the HSCEI rose 1.23% to 8,352.
Technology stocks recovered after recent weakness. Meituan rose 4.36% to HKD87.3, Baidu gained 2.3% after applying for dual primary listing conversion, while Alibaba +1.14%, Tencent +1.04%, and Xiaomi +1.72% rebounded. Tencent’s previous sharp decline was attributed to sector rotation and concerns over gaming revenue.
Resource and commodity stocks were strong amid higher oil and inflation concerns. Chinalco surged 6.28%, Ganfeng Lithium jumped 9.88%, Tianqi Lithium gained 6.96%, and CATL rose 2.79%. Other winners included China Hongqiao +3.37%, Xinyi Glass +3.32%, and Zijin Mining +1.78%.
Blue chips also performed well, with HSBC reaching a new high at HKD161.5 (+1.64%), AIA +2.21% after a price target upgrade, and Sands China rebounding 5% despite weaker-than-expected Q2 EBITDA. Nongfu Spring was the weakest blue chip, falling 5.7%.
Malaysia corporate updates showed a mixed picture, with strong earnings growth in selected sectors but some companies managing cash pressures.
YNH Property deferred RM34.41 million in coupon payments under its perpetual securities programme to preserve cash for ongoing projects, including Solasta Dutamas and Seri Manjung township developments. The deferred payments include RM7.87 million from a RM87 million tranche moved from July 30, 2026 to Jan 29, 2027, and RM26.54 million from a RM263 million tranche moved to Feb 8, 2027. [1]
Westports Holdings delivered strong earnings, with 2QFY2026 net profit surging 56% to RM360.9 million from RM231.6 million, while revenue increased 25% to RM866.9 million due to higher port tariffs and lower costs. However, container volume guidance was reduced to remain roughly flat year-on-year. An interim dividend of 14.98 sen per share was declared.
Pavilion REIT reported improving performance, with 2QFY2026 net property income rising 11.1% to RM142.3 million and revenue increasing 3.6% to RM221.0 million. It proposed an interim distribution of 5.17 sen per unit.
KIP REIT achieved record annual distributions and approved the RM435 million acquisition of Setapak Central Mall, expected to lift assets under management to RM2.1 billion. 4QFY2026 NPI rose 26.2% to RM35.4 million.
Luxchem recorded its strongest quarterly earnings in five years, with 2Q net profit more than doubling to RM18.48 million, while revenue rose 8% to RM202.7 million.
Other developments included MBSB selling MIDF Amanah Asset Management, Kerjaya Prospek securing a RM52.5 million data centre-related contract, and Zecon winning a RM328 million contract for a 100MW solar agrivoltaics project in Sarawak.
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