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Singaporean banks performed excellently across the board this week. DBS announced record full-year results on Thursday (adjusted net profit +24.6%, dividend increased by 52% to S$0.57).

OCBC ($Oversea-Chinese Banking Corporation(O39.SG)) and UOB ($United Overseas Bank(U11.SG)) followed suit on Friday morning, both exceeding expectations with double-digit profit growth.

The FTSE Singapore Straits Times Index (STI.SG) closed at 5,638.99 (+1.03%) on Thursday and extended its gains to approximately 5,656 (+0.3%) in Friday's early trading.

Although the three major banks are already leading the pack, other sectors are showing weak upward momentum. Besides financial bank stocks, there must be other diversified sectors keeping pace.

DBS was the first to release its local bank earnings report before Thursday's market open, reporting a record net profit of S$3.08 billion (up 9% year-on-year), with total revenue breaking through S$6 billion for the first time and wealth asset under management (AUM) also surpassing S$500 billion for the first time.

The upcoming earnings reports from OCBC Bank and UOB are expected to add another layer of support to the Straits Times Index.

SpaceX's first earnings report released on Tuesday: revenue of $7.81 billion significantly exceeded expectations, up 92% year-over-year, while net loss narrowed from $1 billion in the same period last year to $541 million. Driven by the broader market, the stock rose approximately 9%.

However, after hours, as investors focused on the $18.4 billion quarterly capital expenditure (about six times that of the same period last year) rather than profitability itself, the stock sharply reversed and fell about 9% to around $114.

Although both revenue and losses increased significantly, Wall Street remains unconvinced by the AI capital expenditures.

The stock trends for SpaceX and Tesla are basically the same; idealists ultimately have to deliver answers in the real world.

In terms of both revenue and scale, DBS is undoubtedly the top player in the Straits Times Index.

DBS

With the gains over the past three months and its consistent performance in the earlier period, it has a promising future.

Tech stocks lead the way, with all three major US indices seeing simultaneous increases in volume and price. Although the storage sector declined, this is just a normal distribution of gains and losses during market adjustments.

With tensions easing and oil prices falling, tariff policies may trigger a trade war. Whether it's inflation expectations or monetary policy maneuvers behind the scenes, these factors only add chaos to US stock investments. It's better to hold steady on the Straits Times Index; like a small tree standing firm, we should play it safe.

After the earnings reports from the four major US tech giants last week, Wall Street's volatility has been unpredictable. Some companies met their targets and had similar AI spending, yet the degree of market fluctuation varied drastically.

The Singapore stock market surged through July, breaking barriers and reaching new highs multiple times, which was indeed morale-boosting. With the earnings reports of three leading stocks due in early August, we will wait and see.

Microsoft (MSFT) closed up about 15% last night, with its market cap increasing by approximately $450 billion, setting a record for the largest single-day dollar gain in any US stock. This was driven by Azure revenue breaking through $100 billion for the first time (a 43% increase), and FY27 capital expenditure guidance of $175 billion, which is lower than the market's expected ~$190 billion.

Wall Street has long suppressed Microsoft, but this time they finally showed mercy, truly because of its outstanding performance.

However, the fact that rising AI capital expenditures are not being accepted cannot be underestimated in terms of its market effect.

Singapore stocks opened slightly lower this morning, representing a healthy adjustment; overall, the trend remains robust and upward, so there is no need to worry.

The Straits Times Index in Singapore has seen its best month since November 2020, with July gains of approximately 8.6%, led by DBS Group and Oversea-Chinese Banking Corporation.

While US stock chip and storage sectors experienced strong volatility, surrounding Asian markets were even more brutal, but the Singapore market quietly became a safe haven for capital risk in the Asia-Pacific region.

This is exactly where the charm of the growth of the Singapore stock market lies in recent years.

Coca-Cola US stocks jumped approximately 5-7%, hitting an all-time high, after second-quarter earnings exceeded expectations and guidance was raised. This marks its best sales growth in 17 years.

This shows people that besides the increasingly powerful tech sector, traditional sectors like Coca-Cola, McDonald's, and Costco are also good options for risk diversification.

Last night, Nvidia (NVDA) in the US stock market fell by about 5%, marking its largest drop since February. Due to the arrangement to provide a $250 billion financing guarantee for OpenAI's Ohio data center, investors are concerned that this arrangement constitutes circular financing between the two companies' financial reports, which could create a false market impression and trigger an AI investment bubble.

After a long period of stability, this minor event and reasonable correction have begun to appear; it is advisable to observe and cautiously add to positions.

Brent crude oil is falling significantly back to around $90, following a pause in strikes by the US and Iran over the weekend, although negotiations are ongoing rather than an official ceasefire; it closed at $96.28 on Friday after trading above $100 for several weeks.

The 顺势 (following the trend) decline in oil prices is a positive development for energy-importing Singapore.

Global energy costs in June impacted consumer prices, leading to high core inflation in Singapore. Consequently, the Monetary Authority of Singapore has tightened monetary policy, creating a chain reaction.

As the Iran conflict escalates, Brent crude oil has broken through the $100 per barrel mark for the first time, pushing US Treasury yields to their highest level this year. Risk aversion is rampant in the market.

Combined with a sharp drop in tech stocks, this has dragged down the Nasdaq.

The Singapore stock market continues to perform exceptionally well. Although it was pulled lower by last night's US market open, it showed resilience in the afternoon session, indicating that the Straits Times Index remains vibrant.

Fingers crossed that tonight's US market isn't a Black Friday.