Stocks fall as oil prices surge and rate hike fears return: Weekly Market Recap

Apple launched the iPhone Duo this week, and everyone was talking about it in our office on Friday.

I had decided that I probably don't need a phone upgrade this year, so what I was looking out for instead was how Apple’s share price reacted to the launch.

To my surprise, Apple is now trading near record levels. And it is not alone, as the global stock markets and Straits Times Index (STI) have been remarkably resilient.

That led us to take a closer look at why global stock markets are still near record highs, despite higher oil prices and rising bond yields. 

For many investors, record highs can make it tempting to wait for a pullback. However, if I were an investor looking to build my Growth Pot for long term compounding, I would rather invest regularly in diversified equities than try to predict when the market will correct.

If you are looking for a simple way to do that, we updated our guides to two popular ETFs this week. CSPX offers exposure to the S&P 500, while VWRA allows investors to gain exposure to stocks across global markets.

Bond yields have also been rising as inflation concerns return and investors price in further rate hikes. We look at what higher yields could mean for stocks, REIT and bond investments.

Interestingly, the rise in yields is also creating opportunities elsewhere. For example, we saw the cut off yield on the latest 6 month Singapore T bill jumped to 1.70% p.a., the highest level this year. 

For Singapore REIT investors, however, rising yields are less welcome. In our latest sector update, we look at why Singapore REITs are lagging the market, and where we are still seeing opportunities for income.

All of this brings me back to the iPhone conversation we started with.

Whenever a new iPhone is launched, the same question tends to come up: would you be better off buying the latest iPhone, or investing that money instead?

My answer is that it does not have to be one or the other. Spend on the things that matter to you today, while setting aside what you can to give yourself more security and choices in the future.

And when it comes to investing, I would rather build a diversified portfolio around Beansprout’s Four Pots of Wealth than put too much of my portfolio into any single stock, however much I may like the product.

After all, investing is not just about earning a higher return. It is about building the financial security and flexibility to live the life you want over the years ahead.

Happy growing!

Gerald, Founder of Beansprout

⏰ This Week In Markets

📊 Stocks fall as oil prices and bond yields rise

What happened? 

US inflation came in hotter than expected, strengthening expectations for a September rate hike.

Headline CPI rose 0.4% month on month in August, while core CPI increased 0.3%, above consensus expectations.

At the same time, oil prices surged as tensions in the Middle East escalated, adding to concerns about renewed inflationary pressures.

What does this mean?

The latest data suggests that inflation remains elevated, reinforcing expectations that interest rates could stay higher for longer.

US Treasury yields rose following the inflation report. The 2 year US government bond yield, which tends to reflect expectations for Fed policy, climbed to around 4.6%, while the 10 year US government bond yield approached 5%.

The market implied probability of a 25 basis point rate hike in September also climbed to about 87%, according to the CME FedWatch Tool.

What we are watching

With a September rate hike largely priced in, attention will turn to Kevin Warsh’s comments at next week’s FOMC meeting and the Fed’s updated projections.

We will also look out for whether the latest dot plot signals another potential rate hike in December, which will take the Fed funds rate towards 4.0% to 4.25% by year end.

Why should I care?

The S&P 500 fell 0.8% for the week, while the Nasdaq Composite declined 0.7%.

Strong corporate earnings have continued to support markets, but optimism has been tempered by expectations that interest rates could stay elevated for longer.

In Singapore, the Straits Times Index pulled back 1.8% from its recent peak, with property developers among the biggest laggards.

City Developments' share price fell 5.1%  and UOL's share price fell 4.0%, as higher interest rate expectations weighed on the outlook for property demand.

🚗  Moving This Week

• DBS said it “categorically rejects” a S$1.298 billion damages claim from the liquidators of four companies linked to asset-recovery efforts surrounding the 1MDB scandal, and will vigorously contest it. The bank added that it has made no provision for the lawsuit. Read more here 
• Singapore Airlines said its investments in India have been and will continue to be funded through internal resources, subject to board approval and its capital allocation framework. SIA said its Air India stake is a long-term strategic commitment that supports its multi-hub strategy and provides direct exposure to India’s fast-growing aviation market. Read more here 
• According to a Reuters article, Singapore Airlines is reportedly seeking greater management influence and stronger governance rights before committing additional capital to Air India. Potential conditions include greater board voting power and targets for Air India to narrow its losses. Read more here
• CapitaLand Investment is reportedly targeting US$500 million (S$633 million) for its third Asia-Pacific credit programme, with a first close aimed for by end-2026. The fund will focus on senior secured asset-backed investments, building on ACP II, which raised US$320 million and added around US$600 million to CLI’s funds under management. Read more here 
• Singtel and Gulf Development have formed a strategic partnership to develop new submarine cable connectivity between Thailand and Singapore. The partnership will combine Gulf’s infrastructure development experience with Singtel’s submarine cable expertise. The new subsea cable assets are expected to support rising demand for cloud, AI, data centre and digital services across South-east Asia. Read more here. 
• Mapletree Logistics Trust has proposed to divest 365 Fitzgerald Road in Victoria, Australia, for A$28 million (S$25.2 million) as part of its portfolio rejuvenation strategy. The sale price is 3.7% above the property’s latest valuation of A$27 million as at March 31, with the proceeds to be received in cash. Read more here
• Mapletree Logistics Trust has priced its inaugural offshore renminbi bond, raising 500 million yuan (US$74.5 million) through three-year notes carrying a 2.1% annual coupon. The proceeds will be used for general corporate purposes, including refinancing existing borrowings, with Fitch assigning the notes a “BBB+” rating. Read more here
• Sasseur REIT is looking to expand into Southeast Asia as it seeks to diversify beyond its China-focused outlet mall portfolio over the next three to five years. The region is seen as a key growth market, supported by an expanding middle class, rising tourism and the growing presence of Chinese consumer brands. Read more here

Source: Bloomberg, CNBC, Business Times, Edge Singapore

💡 The Big Important Story

Singapore REITs: Stronger distributions meet renewed rate uncertainty

Singapore REITs continue to deliver distribution growth in the first half of 2026, but higher bond yields could weigh on prices.

🤓 What we're looking out for next week

Key dates

• Tuesday, 15 Sep: OUE, Geo Energy Resources ex dividend
• Wednesday, 16 Sep: PC Partner ex dividend, US Federal Reserve meeting
• Thursday, 17 Sep: Asian Pay Television Trust ex dividend
• Friday, 18 Sep: Bank of Japan rate decision 

Get the full list of stocks with upcoming earnings and upcoming dividends. 

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