Stocks rise as AI selloff eases: Weekly Market Recap

I was getting into a taxi this week when I noticed that the driver was playing some romantic ballads I have not heard of.

Intrigued, I noted down a few of the lyrics and searched for the song online. I also tried using a music recognition app to identify the track, but neither worked.

As someone who finds it hard to let go without knowing the answer, I eventually asked the driver what he was listening to. He pointed me to a YouTube playlist called “1950s Romantic Oldies”.

I found the playlist, but strangely, there were no song titles or singers listed. That was when I began to suspect that the music the taxi uncle was enjoying might have been generated by artificial intelligence.

There is nothing wrong with that, as different people enjoy different things. But I eventually went back to my own Spotify playlist, where I know the stories behind the songs and can hear the singer taking a breath between the lines.

It reminded me of how I feel about investment analysis.

Tools such as ChatGPT and Claude can now produce comprehensive analysis within seconds. But when it comes to investing our hard earned money, I still believe there is value in professional judgment. For us, this means using tried and tested frameworks to guide our analysis. For the companies we cover in depth, we also meet management to better understand the business and form a view on whether they can be trusted.

This week offered several reminders of why this judgment still matters.

Keppel’s overall profit fell, but its core business continued to strengthen, showing why it is important to look beyond the headline number. Singapore Airlines achieved record revenue but still reported a net loss, as higher fuel costs and losses from Air India weighed on its results.

Among the Magnificent Seven technology companies, investors reacted very differently depending on what each company’s results revealed about AI spending, future growth and potential risks.

Even comparing lower risk investments was not as simple as choosing the highest yield. The latest six month T bill offered a yield of 1.59%, while the reopened two year SGS bond offered 1.84%. While the SGS bond offered a higher yield, investors also had to consider how long they could set aside their cash and the risk of selling before maturity.

The numbers tell us what happened. The harder part is understanding what matters, which risks deserve our attention and what we should do next. Ultimately, the aim is not simply to earn the highest possible return. It is to make investment decisions with more confidence, so that we can build the financial security to live the life we want.

This is why we created Beansprout Pro. It is where we share more of the judgment behind how we assess opportunities, make sense of the markets and apply our investment frameworks. Learn more about Beansprout Pro here.

Thank you, as always, for reading Beansprout and for the trust you have placed in us over the years. Whether you join Pro or continue reading our free insights, I am grateful to have you as part of the Beansprout community.

Happy growing!

Gerald, Founder of Beansprout

⏰ This Week In Markets

📊 Stocks rise as AI selloff ease

What happened? 

The Federal Reserve kept its benchmark interest rate unchanged at between 3.50% and 3.75%.

However, three policymakers voted for a rate increase, highlighting growing concern that inflation remains above the Fed’s target.

The 30 year US Treasury yield also rose above 5.2%, its highest level since 2007.

What does this mean?

The US earnings season has reached its halfway point, with around 60% of S&P 500 companies having reported their second quarter results.

Of the 305 companies that have reported, 86% delivered earnings above analysts’ expectations.

However, investors are increasingly focused on whether the massive investments in artificial intelligence infrastructure will translate into stronger returns.

Meta  shares fell 8.3% after the company reported a 91% decline in free cash flow and raised its capital expenditure forecast for 2026.

Microsoft provided some reassurance by reporting stronger than expected growth from Azure and offering an upbeat outlook. This helped spark a broader rebound in technology stocks, while Amazon’s better than expected earnings provided further support later in the week.

Apple shares fell 8% despite beating revenue expectations. The company warned that supply constraints affecting Macs, iPhones and iPads are likely to worsen.

What we are watching

Singapore banks will report their earnings this week.

Following their strong share price gains so far this year, investors will be watching whether continued growth in wealth management fees can help support earnings.

Learn more about three Singapore blue chip stocks reporting in August, and what we will be looking out for.

Why should I care?

The S&P 500 gained 1.0% over the week, while the technology focused Nasdaq Composite  rose 1.6%.

However, market volatility may remain elevated. Both indices are trading near record highs, even as oil prices and Treasury yields continue to climb.

Closer to home, Singapore’s Straits Times Index reached another record high after gaining 0.9%.

Property developers were among the strongest performers after the government eased Additional Buyer’s Stamp Duty rules for large scale en bloc redevelopment projects. The changes give developers more time to complete and sell their projects.

🚗  Moving This Week

• Keppel reported a mixed first half, with revenue rising 25% year on year to S$3.8 billion. However, net profit attributable to shareholders fell 59% to S$154.7 million, weighed down by S$165 million of impairments on legacy rigs and adjustments following the terminated M1 sale to Simba. Despite the weaker bottom line, Keppel maintained its interim dividend at 15 cents per share. Read our analysis here.
• Singapore Airlines reported a net loss of S$76 million in 1QFY2027, as sharply higher fuel costs and increased losses from Air India outweighed stronger revenue growth. Revenue rose 19.3% on higher passenger and cargo demand, but net fuel costs surged 78.5%, weighing on profitability. Read our analysis here. Read our analysis here.
• Singtel is in advanced talks to sell a stake of more than 30% in Optus to infrastructure investor Morrison in a deal reportedly valued at over A$2 billion. If completed, the transaction would mark the first time in 25 years that Singtel would no longer be the sole owner of Australia's second-largest telecommunications operator. Read more here
• Sembcorp Industries will acquire a 20% stake in Aster Power, expanding its presence in Singapore's industrial energy sector. As part of the agreement, Sembcorp will also become Aster Power's sole gas supplier, supporting the company's future power, steam and renewable energy needs. Read more here
• Sheng Siong Group reported an 11.9% year-on-year increase in 1HFY2026 earnings, driven by new store openings, higher same-store sales and improved profit margins. Revenue rose 11.9% as consumer spending was supported by CDC vouchers, while a better sales mix lifted gross margin to 31.8%. Read more here
• Frasers Logistics & Commercial Trust reported positive rental reversions in 3Q2026, driven by continued strength in its logistics and industrial portfolio. Rental reversions on an incoming versus outgoing basis came in at 8.2%, reflecting healthy leasing demand across its portfolio. Read more here
• Mapletree Pan Asia Commercial Trust reported a 2.5% year-on-year decline in 1QFY2027 DPU, as weaker overseas contributions and prior asset divestments weighed on revenue. Lower interest rates helped reduce financing costs, while the REIT achieved a positive rental reversion of 4.3% on FY2027 lease renewals. Read more here

Source: Bloomberg, CNBC, Business Times, Edge Singapore

💡 The Big Important Story

What the South Korean stock selloff taught me about building a resilient portfolio

What the South Korean stock selloff taught me about having a safety buffer, position sizing and using the Four Pots to protect our long-term goals.

🤓 What we're looking out for next week

Key dates

• Monday, 3 Aug: Lendlease Global Commercial REIT earnings,
• Tuesday, 4 Aug: Keppel Pacific Oak US REIT, Keppel Infrastructure Trust, ESR Reit, Mapletree Logistics Trust, Capitaland Ascott Trust, Aztech Global Ltd ex-dividend.  Parkway Life REIT earnings. AMD, SpaceX earnings
• Wednesday, 5 Aug: Digital Core REIT, Keppel REIT, iFast Corporation Ltd ex-dividend. CapitaLand Ascendas REIT, CapitaLand China Trust, Centurion Accommodation REIT earnings
• Thursday, 6 Aug: CDL Hospitality Trust, Far East Hospitality Trust, Mapletree Pan Asia Commercial Trust ex-dividend. DBS, Singapore Exchange, Venture  earnings
• Friday, 7 Aug: AIMS APAC REIT, Boustead Singapore ex-dividend. OCBC, UOB, NetLink NBN Trust earnings

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

Found this insight helpful? Follow Beansprout on Telegram, Youtube, Facebook and Instagram, and add Beansprout as your preferred source on Google so you never miss an update.