SG Morning Brief | Cloud Earnings Crush It, Fed Splits 8-4, Macro Gauntlet Awaits

US OvernightThe S&P 500 slipped 0.04% to 7,135.95, the Nasdaq edged up 0.04% to 24,673.24, and the Dow fell 280.12 points (-0.57%) to 48,861.81 for a fifth straight losing day. The 10-year Treasury yield jumped 5 bps to 4.41% after the Fed held rates at 3.50-3.75% in an 8-4 vote, the most dissents since 1992. Governor Stephen Miran wanted a 25 bps cut, while Cleveland's Hammack, Minneapolis' Kashkari, and Dallas' Logan pushed back against easing-bias language in the statement, signaling the bar for future cuts just got higher. In what was his final press conference as chair, Jerome Powell confirmed he will stay on as a Fed governor for an indefinite period, denying incoming chair Kevin Warsh (who cleared the Senate Banking Committee on the same day) a board majority. WTI crude surged above $103 intraday after Trump signaled an extended naval blockade of Iran and rejected Tehran's proposal to reopen the Strait of Hormuz.But the real fireworks came after the bell, when all four hyperscalers reported within minutes of each other and delivered a decisive answer to this week's OpenAI-fueled AI spending doubts.Key MoversNXP Semiconductors (NXPI) +26% -- The Dutch chipmaker posted its best day ever after Q1 revenue of $3.18 billion (+12% YoY) and non-GAAP EPS of $3.05 both topped estimates ($3.15 billion and $2.98, respectively). More importantly, Q2 guidance of $3.35-3.55 billion in revenue and $3.29-3.72 in EPS came in well above consensus, with CEO Rafael Sotomayor citing broad-based improvement across automotive, industrial, and a fast-growing data-centre business now tracking above $500 million for 2026 (up from $200 million last year). Jefferies raised its target to $300; Truist went to $310. The move signals that semiconductor demand recovery extends well beyond AI-GPU names.After hours, Alphabet (GOOGL) +7% -- The standout of the night. Revenue hit approximately $110 billion, well above the $106.9 billion consensus, growing 20% YoY -- its fastest rate since 2022. Net income surged 81% to $62.57 billion ($5.11/share). The headline number was Google Cloud at $20.02 billion (+63% YoY), crushing the $18.05 billion estimate and confirming that AI infrastructure demand is accelerating, not fading. YouTube advertising came in at $9.88 billion, roughly in line.After hours, Microsoft (MSFT) roughly flat -- Revenue of $82.9 billion beat the $81.4 billion consensus, with EPS of $4.27 versus $4.06 expected. Azure grew 40% (39% constant currency), a point above the top of guidance and reversing its recent deceleration trend. The real relief: capex including finance leases was $31.9 billion, roughly $3.4 billion below the $35.3 billion estimate, easing free cash flow fears. Microsoft Cloud revenue hit $54.5 billion (+29%). Management guided Azure growth of 39-40% for Q4, above the 37% Street expectation.After hours, Amazon (AMZN) +4% -- Revenue of $181.5 billion topped $177.3 billion estimates. EPS of $2.78 smashed the $1.65 consensus. AWS revenue grew 28% to $37.6 billion (its fastest growth in 15 quarters), beating estimates, with operating income of $14.16 billion well above the $12.84 billion expected. Advertising rose 24% to $17.2 billion. Q2 guidance of $194-199 billion in revenue was roughly 4% above Street expectations. OpenAI also committed to consuming approximately two gigawatts of Trainium capacity through AWS starting in 2027.After hours, Meta (META) -7% -- The outlier. While Q1 revenue and EPS ($10.44/share, net income up 61%) were strong, the stock sold off on a raised full-year capex guidance of $125-145 billion (up from $115-135 billion), citing higher component pricing. User growth also disappointed, with Meta blaming the Iran conflict's impact on WhatsApp usage and restrictions in Russia.SGX PreviewThe STI has been trading in the 4,890-4,910 range this week, weighed down by surging oil prices and global uncertainty. DBS closed near S$56.80, with the bank set to report Q1 2026 earnings today (April 30). This is the most important local catalyst of the week. Investors will be watching net interest margin trajectory under the current elevated rate environment (the Fed just reinforced rates-on-hold), provisions for any Iran-conflict-related exposure, and whether the S$0.15/quarter capital return dividend is maintained. OCBC traded around S$20.19 and UOB near S$22.70 in recent sessions. The strong hyperscaler earnings overnight could provide a sentiment lift for local tech-adjacent names, but oil above $100 continues to pressure the broader index through inflation expectations and trade-flow disruption risks for Singapore's open economy.Asia Pre-MarketS&P 500 futures are up roughly 0.3-0.4% and Nasdaq 100 futures are gaining 0.6-0.9%, lifted by the Alphabet/Microsoft/Amazon beats, though partially offset by Meta's capex-driven selloff. Dow futures are down about 0.3%, dragged by oil-sensitive and defensive names. WTI is trading near $99.60/bbl, pulling back slightly from Wednesday's $103 intraday peak. Gold is holding around $4,614/oz, while Bitcoin is near $77,265, up about 0.5%. The overnight tone is constructive for tech but cautious overall -- Q1 GDP and PCE data in a few hours will determine whether the rally has legs or hits a macro wall.Today's US Earnings and Economic CalendarCompanyTimingConsensus EPSConsensus RevenueApple (AAPL)Post-mkt~$2.35~$107-111BDBS (SGX)Morning SGT----EventTime (ET)Time (SGT)Q1 GDP Advance Estimate8:30 AM8:30 PMMarch PCE Price Index8:30 AM8:30 PMEmployment Cost Index8:30 AM8:30 PMWeekly Jobless Claims8:30 AM8:30 PMEarnings Spotlight: Apple (AAPL) -- Apple reports fiscal Q2 2026 after the close, with consensus around $2.35 EPS on $107-111 billion in revenue. The company guided Q2 revenue growth of 13-16%. The key metrics are iPhone sales momentum (up 23% YoY last quarter), China revenue trajectory (up 37% in Q1), and any commentary on the CEO transition as Tim Cook prepares to hand the reins to John Ternus effective September 1. The macro data matters just as much today: Q1 GDP is the first official read on whether the economy held up under $90-100 oil and the Iran-conflict overhang. Q4 2025 GDP was revised down to just 0.5%, so a weak print would raise stagflation fears. March Core PCE, the Fed's preferred inflation gauge, is expected to remain elevated at roughly 3.1% YoY. Any upside surprise would reinforce the hawkish dissents from yesterday's FOMC meeting.One More ThingThe AI spending thesis survived its stress test. Three out of four hyperscalers beat on cloud revenue, and critically, Microsoft's capex came in below estimates -- proof that the infrastructure buildout doesn't have to be an endless cash furnace. Google Cloud's 63% growth is the kind of number that makes Tuesday's OpenAI panic look like noise. But the market isn't out of the woods. The 8-4 FOMC split signals a Fed that's far from ready to cut, oil above $100 is a persistent tax on the real economy, and this morning's GDP and PCE readings will tell us whether the economy can absorb it. For Singapore, DBS earnings this morning are the local bellwether. If net interest margins hold and guidance stays firm, the bank stocks should catch a bid alongside the overnight tech rally. If not, the STI's slow slide below 4,900 continues. April ends today -- and what a month it has been.This briefing is for informational purposes only and does not constitute investment advice.