Notable market news this past week (10-May-26)
Here is the Skeptivest roundup of the latest market headlines for the week
🌍 AI investment momentum continues to underpin US equities despite macro uncertainty
AI-related developments remained a major driver for U.S. equities last week, with continued optimism around generative AI adoption and large-scale infrastructure spending supporting broader market sentiment. Investor focus remained centred on technology and semiconductor companies, particularly those exposed to AI computing, data centres, and high-bandwidth memory (HBM) demand. Reports of sustained enterprise AI spending and further increases in hyper-scaler capital expenditure reinforced expectations that the AI investment cycle still has significant room to run. As a result, semiconductor and mega-cap technology names continued to outperform, extending the strong momentum seen across the Nasdaq, KOSPI, TAIEX and the broader AI supply chain.
☕️ Quick fire happenings to note
🌏 Global macro
- US consumer risk sentiment deteriorated further in May, with the latest University of Michigan sentiment index falling to a record low of 48.2 in the preliminary reading, below both market expectations and April’s 49.8 reading, highlighting growing pressure on households amid elevated fuel prices as consumers became increasingly pessimistic about personal finances and broader economic conditions. Despite the weaker headline sentiment data, inflation expectations showed modest signs of easing, with one-year inflation expectations dipping to4.5% from 4.7% previously, while longer-term expectations also edged lower. This suggested that while consumers remain deeply concerned about the economic outlook and affordability pressures, fears of runaway inflation may be stabilizing slightly.
- Trump and Xi to meet in Beijing next week, with markets closely watching for potential progress on tariffs, semiconductor restrictions, and rare earth supply issues amid renewed focus on improving U.S.-China relations. Hopes that both sides may seek to stabilize trade relations helped lift broader risk sentiment, particularly across Asian and export-oriented equities, while semiconductor and industrial stocks benefited from expectations of easing supply chain and trade tensions. However, underlying geopolitical and technology-related frictions continue to keep investors cautious on the longer-term outlook.
- BOJ remains under close market scrutiny amid rising speculation over currency intervention, following suspected action on 1 May 2026 and in several sessions over last week to curb excessive yen weakness. The yen has continued to face downward pressure from widening U.S.-Japan interest rate differentials and persistent energy-driven import costs, prompting officials to issue repeated verbal warnings against disorderly FX moves. While authorities did not confirm the scale of intervention, the sharp intraday reversal in USD/JPY suggested coordinated action by the Ministry of Finance. The intervention temporarily supported the yen, but markets remain alert to further action if depreciation pressures resurface amid ongoing inflation concerns.
🏦 Individual stocks/companies
- Micron Technology Inc (+33.60% past 5D) shares extended its strong rally on the back of continued AI-driven demand for memory chips, particularly high-bandwidth memory (HBM). Amidst the broader strength across the semiconductor sector, as AI infrastructure spending continues to drive rerating across memory and chip stocks, sentiment was further boosted by reports that Micron’s HBM capacity for 2026 is effectively sold out, reinforcing expectations of sustained pricing power and strong earnings momentum.
- Coinbase Global Inc (+0.66% past 5D) shares saw significant volatility over the past week, after reporting a weaker set of Q1 2026 results, with revenue declining amid softer crypto market activity and reduced trading volumes. The company reported a 31% y/y revenue decrease to $1.413 billion for the quarter, reflecting lower retail and institutional trading engagement as digital asset prices and volatility eased. Transaction revenue came under pressure as market participation slowed, while subscription and services revenue remained relatively more resilient, supported by stable coin-related income and growing institutional offerings.
- Block Inc (+3.74% past 5D) shares surged~8% in a single session after reporting a stronger-than-expected Q1 2026 earnings, with results underpinned by solid growth in its core Cash App and Square ecosystems. The company delivered a 27% y/y increase in gross profit, driven by robust consumer engagement and continued strength in payment volumes and lending activity. Cash App was a key standout, with gross profit rising sharply on the back of higher active usage and expansion in financial services features, while Square also posted steady gains in merchant payment volumes. Management also raised full-year guidance, reinforcing confidence in improving operating leverage and continued AI-driven efficiency gains across the platform.
🇸🇬 Singapore related
- Singapore’s financial sector was in focus, with DBS, OCBC, and UOB delivering resilient earnings despite a softer interest rate environment. Strong wealth management performance and higher fee-based income were key offsets to weaker net interest income as margins came under pressure. OCBC stood out with record non-interest income driven by robust wealth inflows, while DBS and UOB also saw continued strength in client asset growth and fee contributions. Notably, DBS announced a total dividend of S$0.81 per share for the latest quarter, which includes a capital return dividend of S$0.15.
