AI concerns hit Wall Street and drag the STI down 1.7% to 4,469.14

Date: November 24, 2025

• Persistent weakness on Wall Street sent the STI down 1.7%
• Most of the selling focused on concerns over the AI trade and interest rate direction
• FOMC minutes showed disagreement among members
• Wall St was hit despite Nvidia’s assurances, all indices in the red for the week
• Bitcoin’s plunge continued, now down more than 30% since Oct peak
• CDL’s Singapore property sales halve in Q3 to S$313 million amid fewer new launches
• One prospectus, two markets: SGX-Nasdaq dual-listing highway to debut in 2026
• NODX surged a surprising 22.2% in Oct thanks to AI-related demand

 

STI lost the 4,500 mark in the wake of Wall St’s weakness

The Straits Times Index dropped about 77 points or 1.7% to 4,469.14 in response to large selloffs on Wal Street which were brought on by growing doubts over whether the massive amounts of artificial intelligence (AI) spending will generate enough revenue to justify the investment despite assurances from AI leader Nvidia.

Average daily volume traded in the local market was S$1.51b versus S$1.46b in the previous week. The bulk of the index’s loss came on Friday when it fell almost 43 points, led by the three banks, Singtel, Keppel and SembCorp.

US interest rates – FOMC minutes showed disagreement in the ranks

Federal Reserve officials agreed last month that weakening labor-market data justified October’s interest-rate cut. What they couldn’t agree on was what comes next.

Minutes from the Fed’s Oct. 28-29 meeting, released Wednesday, show a committee divided over whether to continue easing or to hold rates steady through year-end.

Many participants said that, under their forecasts, it would likely be appropriate to keep rates unchanged for the rest of the year. In Fed terminology, “many” typically signals a slight majority—though not all of those participants are voters.

Several others argued that another reduction in December “could well be appropriate” if the economy evolved as expected.

The minutes also highlighted a growing unease about frothy markets. Several officials flagged the risk of a “disorderly fall” in equity prices in the event of an abrupt reassessment of artificial-intelligence-related technology.

Wall St stocks take a hit despite Nvidia’s assurances

On Thursday, all major US indices suffered a stunning U-turn, rising sharply before quickly surrendering their gains to finish in the red. The Nasdaq Composite sank 2.2%. The S&P 500 fell 1.6%. The Dow Jones Industrial Average dropped 386 points, or 0.8%.

At one point, the Nasdaq was up 2.6%, while the S&P was up 1.9% and the Dow was up 1.6%; all three indexes marked their largest reversal from an intraday high to negative territory since April 8, according to Dow Jones Market Data.

“(Thursday’s) stunning reversal is a sign that market psychology has become quite brittle,” wrote Steve Sosnick, chief strategist at Interactive Brokers.

“If investors were truly enamoured with Nividia’s results and the assurances about the lack of an AI bubble, then by no means would we have succumbed to an algorithmic quirk so quickly. We might have seen a bit of a blip lower but carried on nonetheless. Instead, we got a complete reversal and then some’’.

Nvidia’s revenue for the October quarter was up 62% on the year to US$57 billion, ahead of expectations of US$54.9 billion. Nvidia’s data-center business, primarily driven by AI chip demand, grew even faster, up 66% from last year to US$51.2 billion.

Guidance was also robust. For the current quarter ending in January, Nvidia gave a revenue forecast range with a midpoint of US$65 billion, well ahead of analysts’ consensus of US$62.2 billion. During the company’s earnings call, Nvidia Chief Financial Officer Colette Kress said the guidance doesn’t assume any revenue from China, making the outlook even more impressive.

Nvidia shares spent some of Friday in positive territory, but ultimately closed down 1.0%, to US$178.91.

Nvidia stock had fallen 3.2% on Thursday, a day after its earnings. Despite the selloff, Wall Street is even more positive on Nvidia than it was before the earnings. The average target price on the stock now stands at US$250, according to FactSet—up from around US$234 before the results announcement.

For the week, the S&P slipped 2%, while the blue-chip Dow declined 1.9%. The tech-heavy Nasdaq Composite retreated 2.7%.

Bitcoin’s plunge continued, now down more than 30% since Oct peak

Bitcoin fell 2.1% to US$84,535.40 on Friday. It’s down 10.3% for the week, its worst performance since the last week in February, when it fell 11.4%.

Bitcoin has dropped more than 30% since its Oct. 6 peak, leaving many holders underwater on some of their purchases. Because crypto is often held in margin accounts, some likely had to sell to cover their losses, pushing the price down even further.

“From a demand perspective it appears there is an early, yet growing, sense of concern that could evolve into full-on panic if the selling pressure continues to intensify further than it already has, as lower prices would prompt more selling in a doom loop of sorts,” analysts at the financial research firm Sevens Report wrote on Friday.

CDL’s Singapore property sales halve in Q3 to S$313 million amid fewer new launches

City Developments (CDL) and its joint venture associates recorded Singapore sales of S$313.2 million in the third quarter, a 48.7% slide from S$611.1 million a year ago.

Some 88 units were sold in the three months ended Sep 30, versus 321 units in Q3 2024, CDL said in an operational update.

Sales were primarily from existing projects as there were no new launches during this quarter, said CDL. It explained that last year’s Q3 sales were boosted by the launch of the 276-unit freehold condo Kassia in July, which sold 144 units during its launch weekend.

Separately, CDL added that it is now in advanced stages of discussion and negotiation with shortlisted parties over the sale of Quayside Isle @ Sentosa Cove, after it put the mall on the market at S$111 million in September and closed its expression of interest exercise last month.

One prospectus, two markets: SGX-Nasdaq dual-listing highway to debut in 2026

From next year, companies will be able to list on both the Singapore Exchange (SGX) and Nasdaq using a single set of listing documents, under a new “dual-listing bridge” proposed by the Monetary Authority of Singapore (MAS) Equities Market Review Group.

This is “a bridge that will enable issuers and investors alike to access liquidity simultaneously across both markets”, said National Development Minister and MAS review group chair Chee Hong Tat.

The key difference from existing dual-listing arrangements is that companies will only need to submit one prospectus to both bourses, he noted.

Open only to companies with a market capitalisation of S$2 billion and above, the dual-listing bridge is expected to be launched in mid-2026, subject to regulatory approvals.

To operationalise the bridge, a new Global Listings board will be launched to complement the SGX mainboard and Catalist board.

Separately, Chee announced a new Value Unlock programme by MAS and SGX, to help listed companies strengthen investor engagement and sharpen their focus on shareholder value creation.

The programme has three pillars:

• S$30 million in funding for two grants to build capabilities in corporate strategy, capital optimisation and investor relations;
• support for firms to communicate their strategic plans more proactively; and
• partnerships with ecosystem players to encourage peer learning and collaboration.

 

NODX surged a surprising 22.2% in Oct thanks to AI-related demand

Singapore’s non-oil domestic exports (NODX) surged 22.2% year on year last month, extending the 7% expansion clocked in September underpinned by robust artificial intelligence (AI) demand.

The performance surprised private-sector economists, who had anticipated a 7.5% growth on a yearly basis in a Bloomberg poll. Several were prompted to upgrade their full-year NODX forecasts.

“A structural shift in AI-linked electronics demand and reordering of Asian supply chains suggest Singapore’s exports may be more resilient than initially expected in the face of higher global trade barriers,” said Sheana Yue, senior economist at Oxford Economics.

Maybank economists Chua Hak Bin and Brian Lee expect the wave of AI investments to continue in 2026, on account of major US tech firms having lifted their guidance for capital expenditures.

They also pointed to emerging signs that the generative AI boom is starting to spread from data centres to consumer devices such as smartphones and laptops, “which will likely deliver a further boost to electronics demand”.

Year on year, both electronics and non-electronics exports grew in October.

Electronics exports jumped 33.2% on the year, extending the preceding month’s 30.4% increase.

Maybank is tipping full-year NODX growth to “comfortably exceed” EnterpriseSG’s estimates of 1 to 3%, hitting 4 to 5% instead.

Both OCBC chief economist Selena Ling and RHB group chief economist Barnabas Gan have upgraded their full-year NODX growth forecasts to 4%, from an earlier 2 per cent.