Notable market news this past week (6-Sep-26)
Here is the Skeptivest roundup of the latest market headlines for the week
🌍 September Fed hike back into focus, with oil and geopolitics adding an inflationary pulse
Key market development last week was the repricing of September Fed expectations following the US jobs report for August. The labour market remained relatively resilient, with non-farm payrolls rising by 162,000 and unemployment holding at 4.1%, which led markets to increase the probability of a September rate hike to around 57-59%. This pushed the front end of the Treasury curve higher, with the 2-year yield rising ~5bps to 4.38%, while the USD strengthened and equities came under some pressure. This was particularly interesting given that earlier in the week, dovish comments from Fed Governor Christopher Waller had pushed yields lower and supported equities, highlighting how sensitive markets have become to incoming data ahead of the September FOMC, with the upcoming CPI print next week as the key signal for Fed.
Oil was another major driver, with renewed US-Iran tensions pushing Brent above US$95 and WTI above US$90. Higher oil prices could add to inflationary pressures at a time when the Fed is already balancing relatively resilient growth against inflation, potentially keeping rates higher for longer and putting further pressure on equity valuations. Despite the rise in yields and oil prices, equities have remained surprisingly resilient, suggesting that strong earnings are still providing some support.
☕️ Quick fire happenings to note
🌏 Global macro
- China’s August PMI data pointed to a modest improvement but still an uneven recovery, with the manufacturing PMI rising from 49.2 to 49.8 below the 50-expansion threshold, while the non-manufacturing PMI remained at 49.0, highlighting continued weakness in domestic demand and services and suggesting that while manufacturing and exports are holding up, the broader domestic economy remains soft.
- Japan and South Korea both saw continued manufacturing expansion in August, supported by strong semiconductor and AI-related demand. Japan’s manufacturing PMI rose to 54.9 from 54.5 with new orders growing at their fastest pace since 2018. South Korea’s PMI eased to 52.3 from 53.1 but remained firmly in expansion, with export orders reaching their strongest growthsince late 2020. Despite some moderation in South Korea, the data still pointsto continued strength in Asia’s exports and semiconductor cycle.
- Bank Negara Malaysia held rates but sounded more cautious – BNM kept the OPR unchanged at 2.75% last week with the economy growing 5.7% in 1H26 and inflation still relatively contained. However, BNM highlighted risks from higher global commodity prices and geopolitical tensions, leading to the market interpreting the tone as somewhat more hawkish, with some economists seeing a potential hike later in the year if cost pressures persist.
🏦 Individual stocks/companies
- Broadcom Inc (-3.13% past 5D) shares were volatile last week even as the company delivered strong results with revenue rising 86% y/y to US$29.6bn and adjusted EPS ofUS$3.32, both ahead of expectations. More importantly, Broadcom reported very strong AI revenue growth of 221% y/y to US$16.7bn, but the stock still fell 5-6%in a single session as guidance did not exceed elevated market expectations. This suggests that while the AI fundamentals remain strong, valuations and investor expectations have become so elevated that strong earnings are no longer enough, the company needs to significantly beat expectations to drive the stock higher.
- Lululemon Athletica (-15.24% past 5D) shares declined ~17% after reporting a weak Q2 earnings. Revenue fell 4% y/y to US$2.4bn, missing expectations of US$2.46bn, while comparable sales declined 9%, with Americas sales down 8%. Although headline EPS of US$2.92 beat expectations, this was partly helped by a US$134.5bn tariff refund, while underlying adjusted EPS was weaker. The bigger concern was the outlook, with Lululemon cutting FY2026 revenue guidance to US$10.35–10.50bn, implying a 5–7% decline. The stock fell to US$100.61 last Friday, reflecting concerns over weakening North American demand, softer sales of core products, and rising competition from brands such as Alo and Vuori.
- Shein Global Holdings Limited (-19.84% past 5D) shares fell as much as 10% on its debut, reflecting investor concerns around slowing profitability, US tariff changes and regulatory scrutiny. The company priced its IPO at HK$48.56 per share, raising around US$17.4bn at a valuation of around US$26bn, well below its near-US%100bn private-market valuation in 2022. Despite continued strong demand for its business, the muted debut suggests that public-market investors are placing a much lower valuation on Shein's growth prospects than private markets did previously.
🇸🇬 Singapore related
- MAS proposed legislative amendments last week to implement its regulatory framework for single-currency-pegged stablecoins issued in Singapore. The framework would require issuers to meet requirements around reserve assets, capital, redemption at par and disclosure, aimed at ensuring stablecoins maintain a high degree of value stability. From a markets’ perspective, this could support the institutional adoption of stablecoins for payments, settlement and cross-border transactions, while reinforcing Singapore’s position as a regional digital-asset hub.
