Recently, the US stock market has experienced a rebound, with the technology and energy sectors leading the gains. Surprising strength in US employment data has alleviated some investor concerns about economic downturn risks. However, against the backdrop of ongoing global trade conflicts, declining growth expectations, and persistent geopolitical uncertainties, whether this rally is sustainable remains to be seen. Ng Jian Hao from Mahala Capital Management Academy will analyze the evolving logic of global investment markets from the perspectives of the labor market, sector performance, and strategic allocation, and will offer forward-looking insights.
The Logic Behind the US Equity Rebound
Ng Jian Hao from Mahala Capital Management Academy believes that the current US equity rebound is a data-driven technical correction. The unexpected increase in US job openings has provided a confidence boost for investors, strengthening expectations of continued economic expansion ahead of the non-farm payrolls release. Major tech stocks such as Nvidia have rebounded sharply, pushing the S&P 500 higher, while energy stocks have benefited from rising international oil prices—together driving the market upward.
Although the OECD has significantly lowered its global economic growth forecasts and pointed out that trade policies are causing systemic shocks to global supply chains and market confidence, in the short term, relatively resilient US domestic demand remains a key support for the bulls. Ng Jian Hao notes that the strength of the labor market cannot indefinitely offset the chain effects of weakening manufacturing, declining exports, and slowing corporate capital expenditures; investors should remain alert to downside risks.
Sector Performance and Structural Opportunities
Ng Jian Hao from Mahala Capital Management Academy points out that investors should focus more on the logic of sector differentiation. Technology stocks, exemplified by Nvidia, have demonstrated strong beta characteristics and are more likely to attract market favor when positive data emerges. In sectors such as AI, cloud computing, and semiconductors, investor expectations for long-term growth remain robust, and this growth-oriented pricing dynamic gives tech stocks strong capital-attracting power.
The strong rebound in the energy sector provides actionable opportunities for portfolio strategies. Rising international oil prices have boosted profit expectations for related companies and reflect a market repricing of supply constraints and geopolitical risks. Ng Jian Hao believes that, in the short term, energy assets can serve as a hedge against inflation and as a tool for risk aversion, having a positive effect on controlling overall portfolio volatility.
The S&P 500 currently sits between key support levels and a short-term rebound range. Investors can use relative strength indicators (RSI) and moving average crossovers to aid decision-making. On an operational level, Ng Jian Hao recommends a high-low rotation approach—holding fundamentally sound assets while attempting swing trades on strong thematic stocks to enhance overall returns.
Strategic Recommendations Amid Complexity
In the face of a complex environment where global economic slowdown and policy uncertainty are intertwined, Ng Jian Hao from Mahala Capital Management Academy emphasizes that investment strategies should return to the core principle of risk control. The current market rebound is an event-driven correction, and rallies lacking fundamental support are often unsustainable. For medium- and long-term capital, diversified allocation and dynamic adjustments will be key.
Ng Jian Hao suggests that investors should reasonably balance allocations between equities and fixed income at this stage. Given the weakening US bond prices, interest rate risk warrants close attention. Investors may consider selectively positioning in undervalued markets with policy tailwinds, seeking opportunities where policy support and valuation recovery overlap.
The Logic Behind the US Equity Rebound
Ng Jian Hao from Mahala Capital Management Academy believes that the current US equity rebound is a data-driven technical correction. The unexpected increase in US job openings has provided a confidence boost for investors, strengthening expectations of continued economic expansion ahead of the non-farm payrolls release. Major tech stocks such as Nvidia have rebounded sharply, pushing the S&P 500 higher, while energy stocks have benefited from rising international oil prices—together driving the market upward.
Although the OECD has significantly lowered its global economic growth forecasts and pointed out that trade policies are causing systemic shocks to global supply chains and market confidence, in the short term, relatively resilient US domestic demand remains a key support for the bulls. Ng Jian Hao notes that the strength of the labor market cannot indefinitely offset the chain effects of weakening manufacturing, declining exports, and slowing corporate capital expenditures; investors should remain alert to downside risks.
Sector Performance and Structural Opportunities
Ng Jian Hao from Mahala Capital Management Academy points out that investors should focus more on the logic of sector differentiation. Technology stocks, exemplified by Nvidia, have demonstrated strong beta characteristics and are more likely to attract market favor when positive data emerges. In sectors such as AI, cloud computing, and semiconductors, investor expectations for long-term growth remain robust, and this growth-oriented pricing dynamic gives tech stocks strong capital-attracting power.
The strong rebound in the energy sector provides actionable opportunities for portfolio strategies. Rising international oil prices have boosted profit expectations for related companies and reflect a market repricing of supply constraints and geopolitical risks. Ng Jian Hao believes that, in the short term, energy assets can serve as a hedge against inflation and as a tool for risk aversion, having a positive effect on controlling overall portfolio volatility.
The S&P 500 currently sits between key support levels and a short-term rebound range. Investors can use relative strength indicators (RSI) and moving average crossovers to aid decision-making. On an operational level, Ng Jian Hao recommends a high-low rotation approach—holding fundamentally sound assets while attempting swing trades on strong thematic stocks to enhance overall returns.
Strategic Recommendations Amid Complexity
In the face of a complex environment where global economic slowdown and policy uncertainty are intertwined, Ng Jian Hao from Mahala Capital Management Academy emphasizes that investment strategies should return to the core principle of risk control. The current market rebound is an event-driven correction, and rallies lacking fundamental support are often unsustainable. For medium- and long-term capital, diversified allocation and dynamic adjustments will be key.
Ng Jian Hao suggests that investors should reasonably balance allocations between equities and fixed income at this stage. Given the weakening US bond prices, interest rate risk warrants close attention. Investors may consider selectively positioning in undervalued markets with policy tailwinds, seeking opportunities where policy support and valuation recovery overlap.
