AI rally stalls as bond yields climb: Weekly Market Recap

I was probably not the only one trying to find some relief from the heat this week.

Singapore definitely felt like it was baking, with temperatures feeling like they reached 36 degrees, or even higher.

And it was not just the weather that was running hot.

The Singapore market had a pretty strong week too, with DBS and OCBC reaching record highs and helping to lift the STI. This week, we look at the three best-performing blue chip stocks in May, after our feature last week on how Singapore banks’ earnings are increasingly being supported by wealth management income.

Beyond Singapore, AI remained one of the hottest themes in the market. In our latest podcast, we speak to Singtel’s Group CFO  to find out whether its next growth drivers could come from AI, data centres or even a potential REIT. We also break down the AI value chain, from chips and data centres to cloud and software, and look at the stocks powering each stage.

With many investors looking for the next big growth story, we dive deeper into the space economy ahead of the upcoming SpaceX IPO, and the ETFs that offer investors exposure to this fast-growing area.

But as the week went on, some of that heat started to feel a little uncomfortable. Growth stocks pulled back as investors took profit after their recent strong rally.

For investors looking for income, we speak to the CEO of OUE REIT to understand how the recovery in Singapore’s office and hospitality markets could support its dividends.

With the economic data staying strong, T-bill yields bounced this week as investors expect interest rates to stay elevated for longer.

As always, we also look at the best fixed deposit rates and savings accounts in June, and where we can consider parking our cash to earn the highest yield in June 2026.

So how do we keep cool when both the weather and markets are running hot?

For me, it comes back to building a safety net with Beansprout’s four pots of wealth. When we have enough cash, steady income, and a plan we can stick to, it becomes a little easier to stay calm when markets get volatile.

Happy growing!

Gerald, Founder of Beansprout

⏰ This Week In Markets

📊 AI rally stalls

What happened? 

US economic data came in stronger than expected. Nonfarm payrolls rose by 172,000 in May, ahead of consensus estimates of 80,000. April’s figure was also revised higher to 179,000, from 115,000 previously.

The stronger jobs report pushed the U.S. 10 year government bond yield to 4.54%, as investors grew concerned that a resilient US economy may lead the Federal Reserve to raise interest rates. 

What does this mean?

Technology and AI-related stocks came under pressure as investors turned more cautious after their strong run.

AI chipmaker Broadcom (AVGO) triggered some disappointment after its FY27 AI guidance fell short of elevated market expectations. 

Sentiment was also weighed down by Alphabet’s massive US$85 billion equity fundraising, after the company announced plans to expand its AI infrastructure and computing capacity. This added to concerns about the huge amount of capital needed to fund the AI boom. 

Why should I care?

Markets ended the week lower as investors took profit from the recent rally in US technology stocks.

The S&P 500 index fell 2.6% for the week, while the tech-heavy Nasdaq Composite declined 4.7%, dragged lower by weakness in technology and AI-related names.

In Asia, the Hang Seng Index also weakened during the shortened trading week, reflecting the broader pullback in AI and semiconductor-related stocks.

In Singapore, the Straits Times Index (STI) held up better, gaining 0.3% for the week, as the share prices of DBS and OCBC reached new highs.

🚗  Moving This Week

• DBS plans to open 18 new and upgrade 36 wealth centres across Asia-Pacific by the end of 2027, marking the largest physical expansion of its wealth business to date. The centres will be located across Singapore, Hong Kong, China, India, Indonesia and Taiwan, with the first expected to open in the third quarter of 2026. The expansion is aimed at strengthening DBS’ wealth management network and enhancing customer engagement across the region. Read more here
• CapitaLand Ascendas REIT is acquiring a modern ramp-up logistics property at 5 Tuas Avenue 5 for S$133.9 million. The purchase price is 1.5% below the property’s independent valuation of S$136.0 million. The acquisition is expected to be DPU-accretive, with estimated accretion of 0.033 cents, or 0.2%, on a pro forma basis. It also offers an attractive first-year NPI yield of about 6.6% before transaction costs, supported by a five-year lease term and annual rental escalations. Read more here
• Singapore Airlines is reportedly in early talks with Airbus and Boeing for a major wide-body aircraft order. The carrier is said to be considering at least 50 large jets, including the Boeing 777X or Airbus A350-1000, as it plans for its next phase of growth from the next decade. SIA said it regularly reviews fleet renewal plans, but declined to comment on any confidential discussions. Read more here
• First Resources and Olam Group have been added to the reserve list of the Straits Times Index, replacing NetLink NBN Trust and SIA Engineering Company. The other reserve list constituents are Keppel REIT, Sheng Siong Group and Suntec REIT. The 30-member Straits Times Index remains unchanged, with the latest review taking effect on Jun 22. Learn more about the Straits Times Index here. 

Source: Bloomberg, CNBC, Business Times, Edge Singapore

💡 The Big Important Story

Where to park your cash for higher yield? T-bills vs Fixed Deposit vs SSB (June 2026)

I find out the best places to park our cash to earn a higher yield through fixed deposits, Singapore T-bills, SSBs and money market funds in June 2026.

🤓 What we're looking out for next week

Key dates

• Tuesday, 9 Jun: CMC Invest Event – 2H26 Market Outlook
• Wednesday, 10 Jun:  Oracle earnings, US CPI data
• Friday, 12 Jun:  US Consumer sentiment data

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

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