Tariff fears hit US stocks while fixed deposit rates slide: Weekly Market Recap

This week, I was chatting with one of our interns when he asked me what interests me most about financial markets. 

My answer? Understanding how global events affect the economy, and ultimately, our wallets.

With all the tariff uncertainty in recent months, concerns are growing about a slowdown in US consumer spending and the possibility of sharper interest rate cuts by the Federal Reserve. 

Closer to home, we’ve seen fixed deposit rates continue to fall, and the latest Singapore Savings Bonds (SSB) 10-year average return has dipped to 2.85%. 

The cut-off yield for the last T-bill auction dropped to 2.75%, and we take a look at what to expect for the upcoming auction on 13 March.

On the bright side, some banks have kept their savings account interest rates steady, so it’s still possible to get close to 3% interest in a safe way. 

If you’re looking for potentially higher dividend income, we highlight three Singapore blue-chip REITs offering yields above 6%.

Markets will always have ups and downs, but what’s important is to stay steady and focus on your long-term goals. As they say, keep calm and carry on.

Happy growing!

Gerald, Founder of Beansprout

⏰ This Week In Markets

🤷‍♂️ Tariff uncertainty

What happened? 

Earlier this week, US President Donald Trump announced plans to impose new tariffs on Canada and Mexico while doubling tariffs on China, set to take effect on Tuesday. 

However, he later postponed the levies on Mexican and Canadian goods covered under the North American trade agreement.

What does this mean?

Uncertainty over US trade policy continued to fuel concerns about its impact on inflation and economic growth. 

Already, we have seen signs of slowdown in the labour market. The US economy added 151,000 jobs in February, falling slightly short of expectations, while the unemployment rate inched up to 4.1% from 4.0% in January.

Investors raised their expectations of interest rate cuts by the US Federal Reserve, with three rate cuts now expected in 2025 according to the CME Fedwatch Tool. 

Why should I care? 

The S&P 500 tumbled over 3%, wiping out most of its year-to-date gains and marking its worst week since September 2024. 

The Nasdaq saw even steeper losses, officially entering correction territory with a drop of more than 10% from its recent peak. 

Meanwhile, Singapore stocks outperformed, driven by ST Engineering’s strong earnings and a surge in global investor interest in defence stocks.

🚗  Moving This Week

• DBS is in a “strong position” to continue “healthy” shareholder returns and outperform its peers, says deputy CEO Tan Su Shan in her first letter to shareholders in DBS’s FY2024 annual report. Read more here.
• City Developments’ shares fell by as much as 7% but eventually pared some losses after the stock resumed trading on Monday. Last week, CDL’s chairman Kwek Leng Beng sued his son and CEO Sherman Kwek, along with other board directors, accusing them of leading a coup against him. The company said business operations remain “fully functional and unaffected”.  Read more here.
• Retail investors in Singapore can invest directly in three more Hong Kong-listed blue chip companies through Singapore depository receipts (SDRs) from 5 March. The three newly listed SDRs are Ping An Insurance, an integrated financial, healthcare and eldercare service provider in China; Xiaomi, the world’s third-largest smartphone vendor; and Meituan, the biggest online food delivery platform in China. Read more here.
• Singtel announced that the amalgamation of Advanced Info Service (AIS) and Gulf is scheduled to be completed on 1 April. The amalgamation will remove Intouch as the intermediary company and simplify Singtel’s stake in AIS, its Thai associate. Read more here.
• Sea Limited reported fourth quarter revenue that beat market estimates, driven by strong growth in its financial services segment and e-commerce platform Shopee. Sea Limited anticipates continued growth and profitability in 2025, with Shopee’s GMV expected to grow by 20% and Garena projected to maintain double-digit growth in both user base and bookings.

Source: Bloomberg, CNBC, Business Times, Edge Singapore

💡 The Big Important Story

Will the T-bill yield rebound in the auction on 13 March?

 The closing yield on the 6-month Singapore T-bill was at 2.73%.

🤓 What we're looking out for next week

• Wednesday, 12 March: US Consumer Price Index (CPI) data
• Thursday, 13 March: Singapore 6-month T-bill auction
• Friday, 14 March: US consumer confidence data

Get the full list of stocks with upcoming dividends here. 

Source: SGX, Bloomberg, Refinitiv

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