US stocks rally to new highs on AI momentum: Weekly Market Recap

Singapore’s economy appears to be booming.

I was reading the news this week and saw that Singapore’s GDP grew 6.0% year on year in 1Q2026, ahead of estimates.

To be honest, if you had only been reading the headlines about layoffs, global tensions and market uncertainty, you might have thought the economy was barely holding up. 

It also raises a fair question for investors.: Where is the growth actually coming from? 

This week, we look at a few growth themes for Singapore stocks.

One area is Singapore’s position as a wealth hub. As more wealth flows into Singapore, local banks such as DBS, OCBC and UOB have been growing their wealth management income. With DBS and OCBC trading near record highs, we look at what is supporting this growth, and whether it could continue to support bank dividends.

Another growth theme is AI. Beyond the excitement around chip stocks, the buildout of AI infrastructure is also driving demand for data centres. This week, we take a closer look at what is driving the data centre market, and how investors can gain exposure to the sector.

At the same time, with T bill yields expected to remain low, many investors have been looking at blue chip stocks for dividends. Some of these companies are also exposed to longer term growth trends, which have helped push their share prices higher.

But not every dividend stock has continued to rally.

Singtel’s share price has pulled back after the release of its FY2026 results, even though the company announced a higher dividend. We look at what is driving the weakness, and what investors should watch next.

Keppel has also come back into focus after the M1 Simba transaction fell through. With the stock pulling back, we look at whether this could mean for investors.

With markets still volatile, it is understandable if we feel a bit nervous about chasing growth. 

That is where our 4 pots of wealth framework may come in handy. If we are looking at a higher conviction idea, it should sit in our Opportunity pot, where we can manage the position with clear limits. We can then use our Opportunity pot screening framework to decide whether the idea deserves a place in our watchlist.

By knowing what kind of risk we are taking, and what role each investment plays in our portfolio, we can continue to grow our wealth with greater clarity.

Happy growing!

Gerald, Founder of Beansprout

⏰ This Week In Markets

📊 AI momentum led U.S. markets to new highs

What happened? 

Markets ended the week at record highs, helped by a strong 1Q earnings season from U.S. technology companies.

Technology stocks continued to lead the market higher, as investors grew more confident that demand for AI infrastructure could support earnings growth over the next few years.

Chip stocks rallied on expectations of continued spending on AI servers and data centres. Micron rose as investors expect tighter memory chip supply, while Dell surged after reporting stronger than expected revenue, driven by demand for Nvidia (NVDA) powered AI servers.

Snowflake was another standout performer, jumping after it raised its annual product revenue forecast and announced a multi year cloud and chip agreement with Amazon.

What does this mean?

The rally was also supported by improving risk appetite, as investors became more hopeful about a possible easing of tensions between the U.S. and Iran.

Reports that both sides were moving closer to an agreement helped calm concerns over potential disruptions to oil flows through the Strait of Hormuz. This pushed oil prices lower and supported sentiment across risk assets.

Brent crude fell 11% to close at US$92 per barrel, while the U.S. 10 year Treasury yield declined to 4.4%.

Why should I care?

All three major U.S. indices closed at fresh highs, as investors continued to favour companies linked to AI infrastructure and cloud computing. The S&P 500 index  was up by 1.4% for the week, with gains led by technology stocks.   The Nasdaq Composite ended the week 2.4% higher

In Asia, the Hang Seng Index fell during the shortened trading week, as investor sentiment was weighed down by tighter scrutiny of offshore brokerage activity and mainland capital flows into Hong Kong.

In Singapore, the Straits Times Index (STI)  ended the week slightly lower despite a rebound on Friday. Singtel remained under pressure after its FY2026 results, as investors weighed stronger dividends against concerns over its Singapore business.

Learn more about what is driving the interest in AI, and find out if the AI rally has gone too far.

🚗  Moving This Week

• SATS reported a 17% increase in FY2026 earnings to S$285.2 million, supported by record revenue of S$6.35 billion. The stronger performance was driven by robust cargo volume growth, as well as contributions from its ground handling and food services businesses. Gateway services revenue rose 10.8%, while operating profit increased 14.2% with margins improving to 8.6%. Read more here
• ST Engineering has appointed Jeffrey Lam as group deputy CEO with effect from Jun 1, 2026. Lam, who currently serves as chief operating officer (operations excellence) and president of commercial aerospace, will step down from both positions. The deputy CEO role had been vacant since 2017 following the retirement of former deputy CEO Lee Fook Sun. Read more here
• Mapletree Industrial Trust is divesting a data centre in Philadelphia, Pennsylvania for US$14.5 million. The sale price was determined through a competitive bid process and represents a 4.3% premium to the property’s independent valuation of US$13.9 million as at 31 March 2026. Net proceeds may be used to pare down debt and/or fund working capital needs. Read more here
• Frasers Logistics & Commercial Trust has acquired stakes in four property-holding companies that own logistics assets in Germany and the Netherlands. The four freehold logistics properties were acquired at an agreed value of about 294.9 million euros, representing a discount to their independent valuations. The acquisitions were made through agreements with subsidiaries of sponsor Frasers Property and a third party. Read more here
• AIMS APAC REIT is looking to data centres as its next growth driver. CEO Russell Ng said the REIT is making a “deliberate pivot” towards data centres, as demand for digital infrastructure continues to rise. This marks a shift beyond its traditional industrial asset base. The REIT is also exploring opportunities in Australia, where two sites in New South Wales have received government endorsement as potential data centre developments. Ng described this as a “significant game changer” for the REIT. Read more here
• Boustead Singapore reported a 235% jump in second-half net profit to S$197.7 million, supported by a 43% increase in revenue to S$330.4 million. For FY2026, net profit rose 145% year on year to S$232.6 million. The stronger performance reflects broad-based growth across the group’s businesses during the year. Read more here

Source: Bloomberg, CNBC, Business Times, Edge Singapore

💡 The Big Important Story

DBS and OCBC hit record highs. How wealth management could support bank dividends

DBS, OCBC and UOB are earning more from wealth management. Here’s what Singapore’s wealth boom means for dividends of local banks.

🤓 What we're looking out for next week

Key dates

• Monday, 1 Jun: Singapore Public Holiday
• Tuesday, 2 Jun:  Singapore Savings Bonds application open
• Wednesday, 3 Jun: Broadcom earnings
• Thursday, 4 Jun: Singapore 6-month T-bill auction
• Friday, 5 Jun: US Nonfarm Payrolls

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.