SG Morning Brief | S&P and Nasdaq Hit Records on Apple-Intel Deal and Strong Jobs

Weekend WrapApple and Intel formally confirmed a preliminary chip-manufacturing agreement on Friday, the biggest US foundry deal since the CHIPS Act passed. Nvidia CEO Jensen Huang told the Milken Conference that AI will make "intelligence itself abundant." Iran continued reviewing the US 14-point MOU but renewed clashes near the Strait of Hormuz kept oil volatile.US Overnight (Friday Close)The S&P 500 rose 0.84% to a record 7,398.93, the Nasdaq Composite surged 1.71% to a record 26,247.08, and the Dow edged up 12.16 points (+0.02%) to 49,609.16. For the week, the S&P gained 2.3% and the Nasdaq jumped 4.5%, marking a sixth straight winning week — the longest streak since 2024. April nonfarm payrolls came in at +115,000, nearly double the +65,000 consensus, while unemployment held at 4.3%. WTI crude settled at $95.42 (+0.64%) and gold closed at $4,730.70 (+0.42%).Key MoversIntel (INTC) +14% — Intel surged to $124.92, a new 52-week high, after the WSJ reported Apple and Intel reached a preliminary chip-making agreement following over a year of negotiations. The deal validates Intel's 18A process node and pushes the company's market cap past $600 billion. Intel is now up over 25% for the week and 500% from its 2025 lows.Micron (MU) +15% / SanDisk (SNDK) +17% — The memory duo rallied in lockstep as the AI memory supercycle thesis went mainstream. Micron closed at $746.81 (+15.49%) and SanDisk at $1,562.34 (+16.60%), both hitting fresh all-time highs. NAND flash prices have risen 60% in Q1 2026 with Q2 hikes projected at 70-75%. A Cantor Fitzgerald analyst reiterated $700 (MU) and $1,800 (SNDK) price targets, calling supply tightness structural through 2027.Akamai (AKAM) +27% — The content delivery and cloud security company surged 26.58% to $147.71, its best day ever, after raising full-year guidance despite mixed Q1 results, signaling enterprise demand for AI-adjacent infrastructure is accelerating.SGX PreviewThe STI closed at 4,921.90 on Thursday May 8, down 0.41% from the prior close of 4,941.96, as traders locked in gains near record territory. Friday's close was not available at time of writing. DBS traded near S$58.50 following its strong Q1 results, while OCBC was around S$20.19 and UOB near S$22.70. Banking heavyweights remain the key index support as the Fed's rates-on-hold stance sustains net interest margins. Note: SGX is closed tomorrow (May 12) for Vesak Day, meaning Singapore investors cannot trade on the April CPI release day.Asia Pre-MarketS&P 500 futures are down 0.22%, Nasdaq futures down 0.12%, and Dow futures down 0.24% as Sunday evening trading opens cautiously. WTI crude is at $98.43 (+3.15%), rebounding sharply after Iran-related supply concerns resurfaced over the weekend. Gold is at $4,705 (-0.54%) and Bitcoin is at $82,227 (+1.95%). The modest futures pullback suggests markets are consolidating after a six-week streak of record highs, not reversing.This Week's US Earnings and Economic CalendarEventDateTime (ET)Time (SGT)ConsensusApril CPITue May 128:30 AM8:30 PM+0.6% MoM, +3.7% YoYApril Core CPITue May 128:30 AM8:30 PM+0.3% MoM, +2.7% YoYApril PPIWed May 138:30 AM8:30 PMTBDAdvance Retail SalesThu May 148:30 AM8:30 PMTBDInitial Jobless ClaimsThu May 148:30 AM8:30 PMTBDNo Mag 7 earnings this week. Nvidia reports next Wednesday (May 20).Data Spotlight: April CPI — Headline CPI is expected to jump to 3.7% YoY, driven by surging gasoline prices amid the Iran conflict. Core CPI is forecast at 2.7% YoY, still above the Fed's 2% target. A hot print would reinforce the FOMC's hawkish stance and push back rate cut expectations. For Singapore, the CPI release lands on Vesak Day — SGX is closed — so local investors will react on Wednesday.One More ThingSix straight winning weeks. S&P at 7,400. Intel up 500% from its 2025 lows. SanDisk up 4,000% in one year. Michael Burry compared the current Nasdaq surge to 1999, noting SNDK is outpacing Qualcomm's infamous dot-com rally. He may be early, but the observation deserves attention. This week's CPI will test whether the inflation backdrop can sustain the everything-rally. The market has earned its gains on fundamentals, but fundamentals and valuations are two different conversations.This briefing is for informational purposes only and does not constitute investment advice.