SG Morning Brief | Dow Retakes 50K, Cerebras Surges 68% in Biggest IPO of 2026

US OvernightThe S&P 500 rose 0.77% to a record above 7,500, the Nasdaq gained 0.88% to a record 26,635, and the Dow advanced 0.75% (+370 points) to 50,063 — its first close above 50,000 since February. All three indexes hit new all-time highs. The rally was fueled by the Trump-Xi summit in Beijing, where both leaders agreed the Strait of Hormuz should remain a "free waterway." Treasury Secretary Bessent told CNBC that China will use its influence with Iran to help reopen the strait. The US also cleared 10 Chinese firms to purchase Nvidia's H200 AI chips. April retail sales rose 0.5% (slightly below the 0.6% consensus), and initial jobless claims came in at 211,000 (above 205,000 est). Today is Jerome Powell's final day as Fed Chair; Kevin Warsh takes over Saturday.Key MoversCerebras Systems (CBRS) +68% (IPO) — The AI chipmaker and Nvidia competitor surged 68% to close at $311.07 on its first day of trading, opening at $350 versus an IPO price of $185. The debut pushed its market cap to nearly $70 billion (fully diluted ~$86 billion per Bloomberg). It is the largest US IPO of 2026 and underscores the insatiable appetite for AI semiconductor plays.Cisco (CSCO) +13% — Cisco rallied 13.4% on the heels of its after-hours earnings beat, closing near $113. Record revenue of $15.8 billion (+12% YoY) and a $1 billion raise to full-year guidance confirmed that hyperscaler demand for AI networking infrastructure is accelerating.Nvidia (NVDA) +4% — Nvidia climbed 4.4% to a new all-time high after Bloomberg reported the US cleared 10 Chinese firms for H200 chip purchases. The stock has rallied 15% in May ahead of its May 20 earnings. Bank of America reiterated a buy with a $320 target.SGX PreviewThe STI's last confirmed close was 4,921.90 on May 8; more recent closes were not available. DBS is near S$59.10. The Dow's return above 50,000 and the Trump-Xi Hormuz agreement should provide a positive backdrop for Asian markets today. Banks benefit from sustained high rates, while the Hormuz reopening narrative could ease oil-driven inflation pressures that have weighed on Singapore's trade-sensitive economy.Asia Pre-MarketUS futures are broadly flat heading into Friday, with the market digesting record highs and awaiting Nvidia earnings next Wednesday. Oil has been easing on Hormuz optimism. The Cerebras IPO validates the AI semiconductor theme just days before Nvidia reports, setting expectations sky-high. Powell's last day adds symbolic weight but no policy implications — Warsh's first public comments as Chair next week will matter more.Today's US Earnings and Economic CalendarEventTime (ET)Time (SGT)Empire State Manufacturing8:30 AM8:30 PMIndustrial Production9:15 AM9:15 PMPowell's final day as Fed Chair. No major SG-relevant earnings scheduled.Earnings Spotlight: Nvidia (May 20) — Next Wednesday's Nvidia earnings are now the most anticipated print of the quarter. Analysts expect revenue of $70-78 billion (+~60% YoY), with data center as the primary driver. The stock is up 15% in May alone. This week delivered three validation points: AMD's blowout, Cisco's AI networking surge, and Cerebras pricing at $86 billion fully diluted on day one. If Nvidia matches this momentum, the SOX's 70% YTD rally extends. If it guides below expectations, every AI name that has surged gets repriced.One More ThingCerebras opened at nearly double its IPO price and closed at $311 — a $70 billion company on zero revenue visibility against Nvidia's $300 billion annualized run rate. That is either a sign of a healthy, competitive AI ecosystem, or a sign of a market that has lost all sense of risk. Probably both. The Trump-Xi summit delivered real substance: Hormuz reopening, Boeing orders (though 200 jets, not the 500 expected), and H200 chip access for Chinese firms. If the Hormuz agreement holds, the energy inflation shock that has defined 2026 begins to unwind, which is the single most bullish macro development possible for equities right now. Powell leaves the chair with inflation at 3.8%, yields at multi-year highs, and the S&P 500 at a record. Warsh inherits all of it on Saturday.This briefing is for informational purposes only and does not constitute investment advice.