Singapore’s stock market enjoyed a buoyant week, with the Straits Times Index (SGX: ^STI) registering gains fueled by optimism surrounding a potential interest rate cut by the US Federal Reserve. This positive sentiment was further bolstered by easing inflation data in the United States and Singapore, hinting at a potential soft landing for the global economy.
The market’s primary driver was the growing expectation of a September rate cut by the Fed. As US inflation data continued to show signs of moderation, investors grew confident that the central bank would take action to stimulate economic growth. Minutes released from the Fed’s July policy meeting revealed that most members considered a rate cut “appropriate,” further solidifying market expectations.
SATS Ltd. (SGX: S58) was the market’s top gainer for a couple of days, as it posted a strong financial performance for the first quarter of fiscal year 2025. The company reported a net profit of S$65 million, a significant improvement from the loss of S$29.9 million recorded in the same period last year. The stock rallied as much as 11.5% on Wednesday 21 August.
Over at the US stock market, investors are gearing up for Nvidia‘s (NASDAQ: NVDA) earnings report, closely watching to see if the chipmaker’s continued success can sustain the broader market’s rally. The company’s strong performance has been a driving force behind the market’s gains. However, this has also raised concerns about potential overvaluation, drawing comparisons to the dotcom bubble.
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Disclosure: Joanna Sng owns shares of SATS Ltd.
