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Week Ahead: Wall Street Risk off After US Jobs Report

 





Week Ahead: 4 Aug 2025

US Treasury yields plunged after weaker-than-expected job data, driving up market expectations for a Fed rate cut in September. Markets now see an 81% chance of a September cut as labor market cools and manufacturing shrinks, intensifying pressure on the Fed amid sticky inflation and tariff shocks.

US markets (S&P 500) closed 1.60% lower, and Asian markets are expected to follow suit. Key technical support levels are as follows. DBS and UOB earnings are also expected to take centre stage this week.

Short Term: 
S&P 500 (SPX): Index remains under downward pressure, currently trading near the initial support zone at 6,300. The key support level is at 6,050. 

For the bullish trend to resume, the index must break and hold above the 6,300 level.

Hang Seng Index (HSI): The Hang Seng Index (HSI) failed to hold above the 25,000 psychological level. The index may retreat to the initial support at 24,200, with key support at 23,800—the midpoint of the previous trading range.

Investors may adopt a wait-and-see approach. A revisit to 23,800 could present a medium-term buying opportunity

Traders may consider short-term tactical positions if the index fails to reclaim 6,300, targeting 6,050 as a potential support-based rebound level. Momentum indicators should be monitored closely for bullish divergence before re-entry.

Straits Times Index (STI): STI is also under downward pressure, with initial support at 4,100 and key support at 4,000. A correction toward 4,000 may offer selective entry points in resilient sectors such as banks or REITs.

Long Term:
S&P 500 (SPX) Upward Trend
Hang Seng Index (HSI) Upward Trend
Straits Times Index (STI) Uptrend Trend

Headlines Next Week:
US Corp Earnings: Berkshire Hathaway, Eli Lilly, Palantir Tech, McDonalds, Disney, Caterpillar, AMD, Pfizer.
SG Corp Earnings: DBS, UOB, SGX, Sembcorp Ind, Genting SP, Venture, Capitaland Ascendas REIT, CICT
US: ISM Srv Index, Jun trade bal, Fed Officials speaks, Tariff pause on CN due.
China: Jul CPI, PPI, trade bal, Jul Srv PMI
Singapore: Jul PMI, Jun retail sales, PM’s National Day Message.


Disclaimers apply


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