SG Morning Brief | S&P Snaps 9-Day Streak as Iran Tensions Flare, Broadcom Drops 12% After Hours

US OvernightThe S&P 500 fell 0.74% to 7,553.68, snapping its nine-day winning streak. The Nasdaq dropped 0.89% to 26,853.98, and the Dow shed 620.72 points (-1.21%) to 50,687.07 — the worst day in two weeks. The selloff was triggered by escalating US-Iran tensions after attacks intensified between both sides, sending Brent crude up 2.13% to $98.04 and weighing on rate-sensitive equities. Energy was the only sector in the green (+1.38%). Bitcoin plunged 3% to $65,404 as the crypto selloff deepened. The chip sector was a notable exception: the Philadelphia Semiconductor Index bucked the trend with a 1.4% gain, led by memory and networking names. Software stocks extended their rout, with the software ETF down 7% over two days. Asset managers were hit hard, with KKR falling 4.1% and Blackstone 4%.Key MoversSanDisk (SNDK) +7% — SanDisk gained 6.7%, extending its extraordinary 2026 run as AI data center demand continues to drive NAND flash pricing higher. The memory sector rallied even as the broad market sold off, underscoring the structural tightness in AI-related storage supply.Meta (META) +4% — Meta rose 4.2%, the sole Magnificent Seven winner, after announcing it would sell AI agent access to enterprise customers for the first time. The move positions Meta's Llama models as a direct competitor to OpenAI and Anthropic in the enterprise AI market and opens a new high-margin revenue stream.Intel (INTC) +4% — Intel bounced 4.4%, recovering part of Monday's 5% loss from Nvidia's PC chip launch. The rebound suggests the market views the Nvidia threat as a long-term concern rather than an immediate revenue hit, with Intel's Apple foundry deal still intact.After hours, Broadcom (AVGO) -12% — Broadcom fell 12% after reporting Q2 revenue of $22.19 billion, narrowly missing the $22.27 billion consensus despite beating on EPS ($2.44 vs $2.40 est). AI semiconductor revenue was $10.8 billion, growing rapidly but apparently not fast enough for a stock that had rallied 40% year-to-date. CrowdStrike also fell roughly 9% on weak Q2 revenue guidance.SGX PreviewThe STI was near 5,070 earlier this week, close to its all-time high. DBS is near S$62.18 and UOB near S$37.91. The overnight US selloff and rising oil prices are headwinds, but the chip sector's resilience (+1.4%) should support Venture Corp and local semiconductor names. Broadcom's after-hours drop may dampen sentiment for the broader tech complex today. Banks should hold relatively well as geopolitical tension supports the higher-for-longer rate narrative.Asia Pre-MarketS&P 500 futures are down 0.5%, Nasdaq futures down 0.7%, and Dow futures roughly flat — reflecting the Broadcom miss and Iran escalation. Brent crude is at $98.04, pushing back toward $100 as the Hormuz peace narrative loses momentum. Gold is at $4,468 and Bitcoin at $65,404. The risk-off tone is the most pronounced since mid-May.Today's US Earnings and Economic CalendarEventTime (ET)Time (SGT)Initial Jobless Claims8:30 AM8:30 PMNo major SG-relevant earnings today. Friday: Nonfarm Payrolls (May).Data Spotlight: Nonfarm Payrolls (Friday) — May payrolls are the week's final macro event. Fed Governor Waller flagged that three-month average payroll creation has slowed to just 48,000, and JOLTS on Tuesday showed openings at a two-year high of 7.6 million — a mixed signal. A strong print reinforces the rate hike case heading into Warsh's first FOMC meeting on June 17. A weak print reopens the rate cut debate despite elevated inflation.One More ThingBroadcom's revenue miss was tiny — $80 million on a $22 billion quarter, barely 0.4%. And yet the stock dropped 12% after hours. That tells you everything about where expectations stand in the semiconductor sector after a 75% year-to-date rally. The market is not pricing in good. It is pricing in perfect. And perfect is the one thing even the best companies cannot deliver every quarter. The broader session told a more important story: the S&P's nine-day streak ended not on an earnings miss but on bombs. Iran and the US are still at war. Oil is back at $98. The peace-and-disinflation trade that powered May's 5% rally is on pause. Nonfarm payrolls on Friday and Warsh's first FOMC on June 17 are the next two signposts. Until then, the market trades geopolitics.This briefing is for informational purposes only and does not constitute investment advice.