Notable market news this past week (24-May-26)
Here is the Skeptivest roundup of the latest market headlines for the week
🌍 FOMC minutes reveals deepening divide within members, Kevin Warsh sworn in as Fed Chair
April’s FOMC minutes signals a Fed that is increasingly uneasy with its policy stance despite leaving rates unchanged at 3.50% – 3.75%. The tone of the minutes marked a clear shift: the Committee is no longer aligned on a path towards rate cuts and instead is operating in a more uncertain regime where outcomes are leaning towards prolonged pauses and even the possibility of further hikes. Inflation remained the dominant concern. Compared to earlier meetings, the tone has clearly shifted from gradual disinflation to a more cautious, hawkish-leaning assessment of inflation persistence. Against this backdrop, treasury yields rose across the curve, led by the front end, as markets scaled back near-term rate cut expectations and increased pricing of a higher-for-longer policy path.
Separately, leadership transition dynamics added to the repricing. Kevin Warsh took the oath on 22 May, replacing Jerome Powell after eight years, while Powell remains on as a governor – the first outgoing chair to do so in nearly 80 years. The transition triggered an immediate sell-off in bonds; with the 10-year real yield breaking above 3.5% for the first time since March 2024, and the 10-year nominal yield touched 4.80%. Markets are now pricing in a 38% chance of a 50bphike at the June FOMC meeting, up from 15% previously.
☕️ Quick fire happenings to note
🌏 Global macro
- China’s April retail sales print came in much weaker than expected, signalling a clear loss of momentum in domestic consumption. Retail sales rose just 0.2% y/y, slowing sharply from 1.7% in March and missing consensus expectations of around 2.0%, marking the weakest pace of growth since December 2022, and underscoring the fragility of household demand despite signs of stabilisation earlier in the year. Broader activity data also disappointed, with industrial output rising 4.1% year-on-year in April, below expectations of 5.9%, pointing to softer-than-expected momentum in the manufacturing sector. Taken together, the data reinforces that China’s recovery remains uneven, with consumption-led growth still fragile and overall activity losing some traction.
- Japan’s inflation eases to a 4-year low, complicating BOJ’s policy path – April’s core CPI came in below expectations and slipped further below BOJ’s 2% target to 1.4% y/y, with the decline largely driven by temporary factors such as government subsidies. However, underlying inflation, which excludes both fresh food and energy, remains firmer at around 1.9% y/y, just below the BOJ’s target. This combination of softer headline inflation but stickier underlying price pressures complicates BOJ’s policy path, weakening the near-term case for immediate tightening.
🏦 Individual stocks/companies
- Nvidia Corp (-6.07% past 5D) saw volatile trading over the past week, after reporting strong Q1 earnings that reaffirmed its position as a key beneficiary of the AI infrastructure buildout. The company delivered revenue of $81.6bn, up 85% y/y,and EPS of $1.87, both ahead of expectations, driven by continued exceptional grow thin its data centre segment. Management also guided to ~$91bn revenue for the next quarter, signalling that AI demand from hyper-scalers remains robust. Despitethe earnings beat, market reaction was muted as investors focused more on sustainability concerns rather than headline strength, including the durability of hyper-scaler capex, rising competition in AI accelerators, and ongoinggeopolitical constraints from reduced China exposure due to export restrictions.
- Futu Holdings Ltd (-33.21% past 5D) shares fell sharply after a CSRC investigation triggered a significant reset in sentiment, with the stock falling 27.5% in a single session. The stock came under pressure after China’s securities regulator issued an Investigation Notice and proposed administrative penalties over alleged unlicensed securities brokerage and fund-related activities in mainland China, alongside restrictions on certain operations. The probe forms part of a broader regulatory action that also includes Tiger Brokers and Longbridge Securities. Regulators allege that these platforms’ onshore and offshore entities conducted securities marketing, order processing, and related brokerage services in mainland China without the required CSRC approvals or licenses for margin financing and securities lending activities.
- Singapore Telecommunications Ltd (-4.97% over the past 5D) declined after reporting FY2026 results that showed net profit rising 12% y/y to S$2.77bn, broadly in line with expectations, but largely supported by one-off gains from asset recycling. Growth was also supported by operating leverage in Australia and continued strength in its enterprise and data-centre related segments. Investors, however, were focused on the more subdued underlying operating performance, alongside ongoing concerns around Optus’ operational and regulatory backdrop. Amid the mixed underlying trends, the company delivered a record total dividend of18.5 cents per share, reinforcing its capital return framework.
🇸🇬 Singapore related
- Singapore’s IMDA suspended its review of the proposed Simba–M1 merger after uncovering potential spectrum-related breaches of the Telecommunications Act, including allegations that Simba may have used unassigned radio frequency bands to provide mobile services, an unprecedented breach if confirmed. Following the investigation, Tuas Ltd, the Australia-listed owner of Simba, terminated its agreement to acquire M1 shares, effectively collapsing the deal. Tuas shares subsequently plunged more than 60% on 18 May, while the broader telecom sector saw a sharp repricing on rising regulatory and licensing concerns. The fallout also extended to Keppel, which has exposure to M1 through its stake in the business.
