Singapore shares end flat amid Fed pressure and ahead of Nvidia earnings release

Local stocks ended Wednesday (Aug 27) unchanged while regional markets closed mixed, as investors weighed political pressure on the US Federal Reserve and awaited a key earnings report from artificial intelligence (AI) chip giant Nvidia.

The Fed on Tuesday said it would abide by any court decision on whether President Donald Trump had the legal authority to remove Lisa Cook from the central bank’s board of governors. Trump had announced her dismissal over alleged mortgage fraud.

Meanwhile, Nvidia, which accounts for roughly 8 per cent of the S&P 500, is expected to move markets with its quarterly results, due after US market close on Wednesday.

In Singapore, the benchmark Straits Times Index (STI) inched up 0.04 per cent or 1.86 points to 4,245.57.

Across the broader market, decliners outnumbered advancers 304 to 211, after 1.3 billion securities worth S$1.4 billion were traded.

The top gainer on the STI was business conglomerate Jardine Matheson, which rose 3.3 per cent or US$1.89 to US$59.84.

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The biggest decliner was resort and casino operator Genting Singapore. The counter fell 2.6 per cent or S$0.02 to S$0.735.

The performance of the three local banks was mixed. DBS gained 0.3 per cent or S$0.15 to S$50.17, UOB fell 0.3 per cent or S$0.09 to S$35.09, and OCBC was down 0.2 per cent or S$0.04 at S$16.66.

Markets across the region ended mixed. Japan’s Nikkei 225 and South Korea’s Kospi each rose 0.3 per cent, Malaysia’s Kuala Lumpur Composite Index gained 0.4 per cent, and Indonesia’s IDX Composite added 0.4 per cent, while Hong Kong’s Hang Seng Index slid 1.3 per cent.

Swissquote Bank senior analyst Ipek Ozkardeskaya pointed out that markets fear Trump tilting Fed decision-making in his favour, indirectly influencing policy.

“Inappropriate rate cuts could fuel inflation and push long-term yields higher, especially against the backdrop of soaring US debt,” she said.

She also noted that Nvidia’s results could prove decisive for markets. The chipmaker is expected to post about US$46 billion in revenue, driven by AI demand from Microsoft and Meta, which make up 40 per cent of sales.

“Even if Nvidia beats expectations, investors might use strength as an opportunity to take profits, which could accelerate a correction,” she added.