SG Morning Brief | S&P Tops 7,600 as Marvell Surges 33%, SOX Jumps 6%; Broadcom Reports Tonight

US Overnight

The S&P 500 rose 0.13% to a record 7,609.78, closing above 7,600 for the first time. The Nasdaq edged up 0.03% to 27,093.90, extending its winning streak to nine sessions, while the Dow gained 0.45% to a record 51,307.79. Beneath the surface, leadership was narrow and volatile. The Philadelphia Semiconductor Index surged 5.9%, driven by Marvell and HPE, but the Magnificent Seven underperformed the broad market as Microsoft fell 4.2% and Amazon dropped 3.9%. Alphabet declined after announcing an $80 billion equity financing plan. The software ETF fell 2.7% as the three-day rally paused. Crypto names were hit hard, with Strategy dropping 9.2% and Coinbase falling 4.7%. JOLTS data showed job openings rose 4.6% to 7.6 million in April, the highest in nearly two years, reinforcing the view that the labor market remains too tight for the Fed to cut.

Key Movers

Marvell (MRVL) +33% — Marvell surged 32.52% after Nvidia CEO Jensen Huang called the company a future trillion-dollar chipmaker during his Computex Taipei keynote. Nvidia has invested $2 billion in Marvell, whose networking and optical interconnect solutions are critical to AI data center infrastructure. Data center revenue now accounts for 75% of Marvell's total, up from 50% two years ago. The stock has rallied over 130% year-to-date.

HPE (HPE) +20% — HPE jumped 19.47% on its first full trading day after Monday's blockbuster Q2 earnings, which beat estimates and raised full-year guidance. The stock opened near $56 after surging 26% in Monday's after-hours session, then traded between $43 and $48 during the day as early profit-taking gave way to renewed buying. The result confirms enterprise AI server demand is broad-based.

Microsoft (MSFT) -4% — Microsoft fell 4.2%, dragging the Mag 7 lower alongside Amazon's 3.9% decline. The selloff reflected rotation from mega-cap software into semiconductor and infrastructure names rather than any fundamental catalyst. The divergence between SOX (+5.9%) and the software ETF (-2.7%) underscores a market that is rewarding hardware over software in the current AI cycle.

SGX Preview

The STI closed at 5,070.55 near its all-time high. DBS is near S$62.18 and UOB near S$37.91. The SOX's 5.9% surge should lift Venture Corp and local semiconductor names. The strong JOLTS data, however, supports the higher-for-longer rate thesis — positive for bank net interest margins but a headwind for rate-sensitive sectors. Tonight's Broadcom earnings are the key catalyst for Asian tech sentiment tomorrow.

Asia Pre-Market

S&P 500 futures are edging lower (-0.1%), Nasdaq futures down 0.3%, as markets consolidate ahead of Broadcom. WTI crude is at $93.51. The cautious tone reflects rotation rather than risk-off: chips are surging while mega-cap software retreats, and crypto is selling off while small caps hold up. Broadcom's report tonight will determine whether the semiconductor rally extends or exhausts.

Today's US Earnings and Economic Calendar

Friday: Nonfarm Payrolls.

Earnings Spotlight: Broadcom (AVGO) — The last major AI chip report of the season. Broadcom's custom accelerator and networking business is directly tied to hyperscaler AI buildout. After Marvell's 33% surge on Jensen Huang's endorsement, expectations for Broadcom are sky-high. A beat validates that the AI hardware supercycle has legs beyond Nvidia; a miss could trigger the first meaningful chip correction since mid-May. CrowdStrike reports the same evening and will test whether the cybersecurity-AI crossover is translating into revenue growth.

One More Thing

The market split in two on Tuesday. Semiconductors surged 5.9%. Software fell 2.7%. Crypto crashed. Mag 7 underperformed. And yet the S&P 500 still closed at a record. That tells you everything about market structure right now: the AI hardware trade is powerful enough to carry the index even when most other sectors are selling off. JOLTS at 7.6 million — the highest in two years — means the labor market is not giving the Fed any reason to cut. Warsh's first rate decision is June 17, and the market now prices a 45% chance of a hike. Tonight Broadcom reports into a semiconductor sector that has gained 75% year-to-date. Jensen Huang has endorsed Marvell, partnered with Corning, and launched a PC chip — but Broadcom is his most important supply chain partner. If Broadcom delivers, the chip rally survives June. If it doesn't, the 75% run faces gravity.

This briefing is for informational purposes only and does not constitute investment advice.