SG Morning Brief｜A $1 Trillion Chip Rout to Start the Week

Weekend Wrap

Wall Street limped into the weekend after Friday's violent semiconductor selloff wiped more than US$1 trillion off US-traded chipmakers in a single session. The trigger was a chain reaction: Broadcom's Wednesday-night guidance, in which it reiterated rather than raised its 2026 AI chip outlook, soured sentiment on the group, and Friday's much-stronger-than-expected May jobs report (172,000 added versus an 80,000 consensus) sent Treasury yields spiking, knocking high-multiple tech further. The 10-year yield climbed back above 4.5% and the 30-year topped 5%. The PHLX semiconductor index sank about 8.5%, its worst day since the April 2025 tariff selloff, and the iShares Semiconductor ETF dropped 10% — its steepest fall since March 2020.

US Overnight (Friday Close)

The Nasdaq Composite slumped 4.18% to 25,709.43, its biggest single-day drop since April 2025. The S&P 500 fell 2.64% to 7,383.74, and the Dow held up best, down 1.35% to 50,866.78 after notching a record only the day before. The VIX spiked roughly 40% to 21.51. For the week, the S&P 500 lost more than 2% and the Nasdaq shed around 4.7%.

Key Movers

Marvell Technology (MRVL) -16% — The custom-AI-chip name was among the hardest hit as investors unwound months of parabolic gains. There was no company-specific news; this was a sector-wide repricing of the "buy the dip" trade that had worked all spring, with the handful of vertical chip names dubbed the "Parabolic 7" all breaking at once.

Micron Technology (MU) -13% — The memory maker gave back another 13% on top of Thursday's 8% drop, evaporating roughly US$127 billion in market value over two sessions, as a deepening memory-chip squeeze and IDC's warning of a record 13% drop in 2026 global smartphone volumes hit the demand narrative. AMD and Intel each fell around 11%, Broadcom dropped about 7.5% (two-day loss roughly 19%), and Nvidia slid 5.93%.

Meta Platforms (META) -5.51% — Outside chips, Meta closed at US$593.00 on reports it is weighing a multibillion-dollar secondary share sale, just days after Alphabet raised US$80 billion to fund capex. Investors read the back-to-back capital raises as a sign of how heavy the AI infrastructure bill is becoming for big tech.

SGX Preview

The STI closed Friday around 5,050, down about 0.46% on the day but still up roughly 0.34% for the week, having set a fresh record of 5,150.69 on June 3 before pulling back. Crucially, Singapore's market shut before Wall Street's Friday rout fully unfolded, so today's open is the real test — expect the index to feel the chip-driven risk-off mood. DBS last traded near S$57.87 (about +0.47%), with OCBC and UOB the other two heavyweights to watch given the trio makes up over half the index. The banks' limited direct chip exposure may cushion the STI relative to tech-heavy regional peers.

Asia Pre-Market

US futures point to a cautious, marginally firmer start, with S&P 500 futures hovering near 7,400 — just above Friday's cash close — suggesting an attempt to stabilise rather than a clean bounce. WTI crude sits around the low-US$90s and Brent near US$93, both soft as US-Iran talks stall and demand-growth worries build. Gold tumbled 3.1% Friday to about US$4,365 as the yield spike hurt non-yielding assets, while Bitcoin is changing hands around US$61,300 after touching a 19-month low late last week. The signal for SGX: sentiment is fragile, and any early strength is likely to be tested against how Asian chip names trade.

This Week's US Earnings & Economic Calendar

The Week's Main Event — SpaceX (SPCX). The biggest story this week isn't an earnings print; it's the largest IPO in history. SpaceX is set to price Thursday after the close and debut on Nasdaq under ticker SPCX on Friday June 12, targeting a valuation around US$1.75 trillion and a raise of roughly US$75 billion — dwarfing Saudi Aramco's previous record. Goldman Sachs leads a 21-bank syndicate, and notably about 30% of the float is earmarked for retail (roughly triple the mega-cap norm), so this is a deal SG retail can realistically chase through their brokers. The catch: SpaceX posted a US$4.28 billion net loss in Q1 2026 alone and carries a US$41.3 billion accumulated deficit, so the valuation rests heavily on Starlink growth and the xAI merger story. Watch Tesla (TSLA) into the listing — Musk-bull capital tends to split between TSLA and SPCX on debut days, which has historically pressured Tesla short-term.

Earnings Spotlight — Oracle (ORCL), Wed Jun 10 after close. Wall Street expects fiscal Q4 EPS of $1.96 (+15.3% YoY) on revenue of US$19.1 billion (+20.1% YoY). After Friday's chip carnage, Oracle becomes the week's cleanest read on whether investors still want to pay up for AI-infrastructure exposure — its cloud and data-center commitments are the story. It lands the same day as the May CPI print, so a hot inflation number plus a soft Oracle outlook could compound the pressure on tech. Adobe (ADBE) follows Thursday, with shares already down about 40% over the past year on generative-AI competition fears. Note the Fed meets June 16–17, the first under new chair Kevin Warsh.

One More Thing

Friday's lesson was about positioning, not fundamentals: when a crowded trade unwinds, the names that ran furthest fall fastest, regardless of their individual stories. The question this week is whether this was a healthy flush of speculative excess or the start of something broader. Three events will tell you most — Wednesday's CPI (does inflation re-acceleration force the Fed's hand?), Oracle's print (is the AI capex story still bankable?), and Friday's SpaceX debut (does mega-cap risk appetite survive a jittery tape?). For SGX investors, the bank-heavy STI is a different animal from the chip-led US tape — which, on days like today, can be a feature.

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