MONEY MASTER

US markets extended losses as  rising oil prices and a sharp sell-off in tech stocks weighed on sentiment , overshadowing dovish signals from the Federal Reserve. Key Market Moves S&P 500 fell 0.4% to 6,343.72 Nasdaq dropped 0.7% to 20,794.64 Dow Jones rose 0.1% to 45,216.14 Key takeaway: Tech weakness and oil-driven inflation fears are dragging the broader market lower. What’s Driving the Sell-Off? 1. Oil Prices Surge Again Crude oil jumped  over 5% to around US$105 Driven by ongoing  US–Iran–Israel conflict Higher oil = higher inflation risk = pressure on equities 2. Tech Stocks Lead the Decline Heavy losses in AI, chip, and data-related names: Applied Digital : -13.5% AXT Inc : -13% Micron Technology : -9.9% Arm Holdings : -5% Intel : -4.5% Super Micro Computer : -4.1% AI and semiconductor stocks are facing profit-taking and valuation concerns 3. Fed Comments Not Enough to Lift Sentiment Jerome Powell  signaled no immediate rate hikes despite rising energy pri...

US equities staged a strong rebound, with major indices rising over 1%, as  falling oil prices and signs of potential de-escalation in the Middle East boosted risk sentiment . Stocks Snap Losing Streak on Diplomatic Optimism Wall Street rallied after reports of  “productive” US-Iran discussions , prompting a temporary delay in planned strikes. Dow Jones Industrial Average  rose  1.4% S&P 500 Index  gained  1.2% Nasdaq Composite Index  climbed  1.4% The move snapped a  three-day losing streak , signalling a shift back to  risk-on sentiment .  Oil Collapse Drives Market Relief The rally was driven by a sharp reversal in oil prices: Crude plunged as much as  14% intraday Prices fell to around  US$84 per barrel The drop followed easing concerns over disruptions in the  Strait of Hormuz , a key route for  ~20% of global energy supply . Lower oil prices helped reduce fears of: Runaway inflation Further interest rat...

The long-standing relationship between Big Tech and the broader market has  broken down — and that may signal a new opportunity for investors . Correlation Breakdown Signals Market Shift For the first time in years, the  Magnificent Seven and the equal-weight S&P 500 have decoupled , with correlation turning  negative since late February . This shift suggests: Big Tech is no longer moving in sync with the broader market Market leadership could rotate back to tech stocks Historically, such divergence has preceded  strong outperformance from Big Tech .  Big Tech Lagged — But Now Looks Attractive Before the recent shift, Big Tech had underperformed: Magnificent Seven index fell  7.3% (Oct–Feb) Equal-weight S&P 500 rose  8.9% This was driven by concerns over: Heavy AI spending (capex concerns) Slowing momentum in key names like  Nvidia However, the pullback has reset valuations: Valuation dropped to  <25x earnings , below long-term ave...

Microsoft  is reportedly considering legal action against  Amazon  and  OpenAI  over a  US$50 billion cloud agreement , escalating tensions in the rapidly evolving artificial intelligence (AI) infrastructure race. Dispute Centres on Cloud Exclusivity At the core of the dispute is whether  Amazon Web Services (AWS)  can host OpenAI’s new commercial offering,  “Frontier,”  without breaching Microsoft’s  exclusive cloud partnership  with the AI firm. Microsoft’s agreement requires that  access to OpenAI models be delivered via its Azure cloud platform , making any potential AWS involvement a  possible contractual violation . The reported deal could significantly reshape the  competitive landscape in cloud computing and AI services , where exclusivity and infrastructure control are key strategic advantages. High Stakes in the AI Infrastructure Race The potential legal challenge underscores intensifying competition am...

Quick Summary Trump convenes  Amazon, Google, Meta, Microsoft and others Firms to pledge covering electricity costs for AI data centres Move aims to prevent  higher consumer power bills Pledge is  non-binding , critics call it “toothless” Big Tech Called to the White House US President  Donald Trump  will host technology executives on March 4 to sign pledges committing their firms to fund electricity supply for energy-intensive AI data centres. Expected attendees include: Amazon Alphabet Meta Platforms Microsoft xAI Oracle OpenAI Key point: Tech firms will be asked to build, buy or secure their own power supply for new AI facilities. Why This Matters AI data centres: Consume massive amounts of electricity Increase strain on power grids Contribute to rising electricity prices US electricity prices have climbed  6% year-on-year , reaching  17.24 cents per kWh in December . With mid-term elections approaching, Trump faces mounting political pressure over ...

Quick Take Big Tech’s 2026 capital spending plans have  blown past expectations , sparking a sharp market reaction. Investors still believe in AI — but they now want  clear proof of returns , not just long-term promises. The CapEx Shock Across recent earnings, mega-cap tech companies pushed 2026 CapEx from  “already massive”  to  “historically extreme” : Meta Platforms : US$115–135B vs US$110B consensus Stock jumped ~10% initially, but gains faded →  investors want evidence, not AI rhetoric Microsoft : US$140–150B vs US$109B consensus Stock fell ~10% →  ROI timing now under scrutiny Alphabet : US$175–185B vs US$115B consensus Shares slipped as markets adjusted to a  more capital-intensive Google Amazon : ~US$200B vs US$146B consensus Stock dropped ~11% after-hours on cash flow concerns What Investors Are Really Worried About This is no longer about believing in AI — it’s about  financial optics and timing . Key Market Fears CapEx is rising fa...

Quick Summary Big Tech plans ~US$650B in capital spending for 2026 , driven by the AI race Alphabet, Amazon, Meta, and Microsoft  are building massive data-centre capacity Spending rivals  19th-century railroads and the 1990s telecom boom Investors are uneasy about  execution risks, bottlenecks, and returns What’s Driving the Spending Surge Four US tech giants —  Alphabet ,  Amazon ,  Meta Platforms , and  Microsoft  — are racing to dominate AI by pouring cash into  data centres, AI chips, networking gear, and power infrastructure . Total 2026 capex forecast: ~US$650 billion , up  ~60% year-on-year  — a scale unseen this century. Analysts compare the moment to  the telecom bubble ,  US railroad build-out , or  post-war highway spending . Eye-Popping Company Plans Meta:  Up to  US$135B  in 2026 capex ( ~+87% ) Microsoft:   ~US$105B  for FY ending June (Q2 capex  +66% YoY ) Alphabet:  ...

Quick Summary US stock futures moved higher while  gold rebounded sharply  after recent losses. A  partial US government shutdown has delayed the  January jobs report , adding uncertainty to near-term data. Meanwhile, a  US–India trade deal ,  major AI investments , and  strong earnings from Palantir  shaped early market sentiment. Key Takeaways January US jobs report delayed  due to partial government shutdown US to cut India tariffs from 25% to 18%  under a  US$500bn+ trade deal Gold rebounds over 5%  after a two-day rout SpaceX acquires xAI , forming a vertically integrated AI ecosystem Big Tech ramps up AI spending ; earnings season remains in focus Markets Before the Bell Nasdaq 100 futures  +0.41% S&P 500 futures  +0.11% Dow futures  -0.11% Gold +5.43% , rebounding strongly Apple  +4.06% , Tesla  -2.00% Macro & Policy US–India trade deal : Tariffs on Indian goods cut to  18% from 25% ...

Apple ’s FY26 Q1 results didn’t simply outperform forecasts. They forced investors to rethink  where the real risks now sit — and which long-running worries may finally be losing relevance. For several quarters, two concerns dominated the narrative: a sluggish China recovery and the threat that rising component costs would erode margins. This earnings report directly challenged both. The China Question Has Shifted Greater China revenue reached  US$25.5 billion , rising  38% year over year  — the fastest pace since 2021 and well ahead of market expectations. More important than the headline number is what it removes. China had been a persistent drag on Apple’s growth story, underperforming the company average for nine consecutive quarters. This quarter breaks that pattern decisively. The rebound was driven primarily by iPhone demand, helped by extended state subsidies and a sharp recovery in foreign-brand smartphone shipments. With China once again contributing meanin...

Quick Summary Microsoft sinks on Azure growth concerns Meta rallies on strong earnings and AI confidence AI capex expectations are reshaping valuations Guidance matters more than headline beats A volatile Wall Street session saw  Big Tech earnings dominate market moves , with a sharp sell-off in  Microsoft  dragging the Nasdaq lower, even as peers like  Meta Platforms  and  IBM  rallied strongly. What’s Driving the Market Nasdaq fell over 2% , led by a steep Microsoft decline Investors punished slowing cloud growth , despite earnings beats AI spending remains a key theme , but expectations are rising even faster Biggest Stock Movers Microsoft (MSFT) -11% , despite beating earnings and revenue estimates Azure growth slowed to 39% , with Q3 guidance  below expectations Key concern:  Cloud momentum may be peaking Meta Platforms (META) +7.8%  after beating Q4 earnings and revenue 2026 capex could reach US$135B , nearly double last year Marke...

Quick Take US markets opened firmer as  Big Tech accelerates AI spending , precious metals hit fresh records, and investors digest a  Fed pause signal  from Chair Jerome Powell. Key Market Drivers Federal Reserve held rates steady  at  3.5%–3.75% , with Powell signalling  no urgency for further rate cuts Big Tech exploring up to US$60B investment in OpenAI , implying a  US$730B valuation Gold and silver hit new all-time highs  amid safe-haven demand Tesla and Microsoft beat earnings expectations , reinforcing AI-led growth themes Before the Bell: Futures Snapshot E-mini Nasdaq 100:  +0.19% E-mini S&P 500:  +0.19% E-mini Dow:  +0.06% Safe-haven assets continued to rally: Gold (XAU/USD): +2.29% Silver (XAG/USD): new record highs Fed Update: Rates on Hold The  Federal Reserve  kept policy unchanged. Chair  Jerome Powell  said monetary policy is  near neutral , suggesting a  pause in rate cuts  as ...