SG Morning Brief | Dow Surges 875 Points to Record as Market Rotates Out of Chips; Payrolls Tonight

US OvernightThe Dow surged 874.86 points (+1.73%) to a record 51,561.93, its strongest session in weeks, while the Nasdaq slipped 0.09% to 26,830.96 and the S&P 500 rose 0.41% to 7,584.31. The session was a textbook rotation: nine of eleven S&P sectors advanced as investors moved aggressively out of semiconductors and into healthcare, financials, and consumer names. The Philadelphia Semiconductor Index tumbled 4.4%, with Broadcom opening down 15% following its Wednesday night revenue miss before recovering partially. Oil eased to $95.17 (WTI, -0.89%) and $96.70 (Brent, -1.13%). The 10-year yield fell 1.4 bps to 4.477%, with the 20-year and 30-year dipping just below 5%. Rate hike odds climbed to 75% by year-end per LSEG data. SpaceX's investor roadshow began ahead of its June 12 IPO at $135 per share, targeting a $1.75 trillion valuation and a record $75 billion raise.Key MoversBroadcom (AVGO) -13% — Broadcom fell 12.59% to $418.91, opening down 15% before recovering slightly into the close. Q2 revenue of $22.19 billion narrowly missed the $22.27 billion consensus, and the company stuck to its $100 billion long-range AI revenue target rather than raising it. Baird flagged a competitive threat: Broadcom's largest customer is reportedly shifting inferencing work to MediaTek.Google (GOOG) +4% — Google bounced 3.82% to $369.27, recovering from two days of selling triggered by its $80 billion equity financing plan. The rally suggests the market has digested the dilution risk and refocused on Alphabet's AI infrastructure spending as a long-term positive.Micron (MU) -8% — Micron fell 7.74% to $996.00, pulling back sharply from its $1 trillion market cap milestone as the Broadcom-driven chip selloff hit memory names hard. ARM dropped over 4%, AMD fell 3.5% in the broadest semiconductor rout since mid-May.SGX PreviewThe STI was near 5,070 earlier this week. DBS is near S$62.18 and UOB near S$37.91. The Dow's record close on a healthcare and financials rotation is positive for Singapore banks, which benefit from the sustained rate environment. The chip selloff (SOX -4.4%) may weigh on Venture Corp, but the broad-market advance — advancing stocks outnumbered decliners 1.72-to-1 on the NYSE — suggests underlying market health. Tonight's nonfarm payrolls report is the final macro catalyst before Warsh's first FOMC meeting on June 17.Asia Pre-MarketS&P 500 futures are down 0.5%, Nasdaq futures down 0.7%, and Dow futures flat — reflecting continued chip weakness. Gold is at $4,500, and oil is easing near $95-97 as conflicting Iran reports keep traders cautious. The market enters payrolls day with the Dow at a record, chips correcting, and 75% rate hike odds. A hot jobs number could push hike odds higher; a weak print could spark the next leg of the rally.Today's US Earnings and Economic CalendarEventTime (ET)Time (SGT)ConsensusNonfarm Payrolls (May)8:30 AM8:30 PMTBDUnemployment Rate (May)8:30 AM8:30 PMTBDNo major SG-relevant earnings today.Data Spotlight: May Nonfarm Payrolls — This is the last major data point before Warsh's first FOMC on June 17. JOLTS earlier this week showed openings at a two-year high of 7.6 million, suggesting the labor market remains tight. Fed Governor Waller flagged three-month average payroll growth at just 48,000 — if May confirms that deceleration, rate cut hopes could revive. But a strong print above 200,000 would cement the 75% hike probability and set up a hawkish first meeting for Warsh.One More ThingThursday was the market telling you that the AI trade is not the only trade. The Dow surged nearly 900 points while the Nasdaq went nowhere and semiconductors lost 4.4%. UnitedHealth, JPMorgan, Eli Lilly, and Costco carried the S&P 500 higher without a single chip stock's help. That is healthy. Broadcom's miss was small — $80 million on a $22 billion quarter — but it broke the spell of invincibility that had surrounded the sector since April. The chip rally is not over, but it is no longer unidirectional. The rotation into healthcare, financials, and consumer staples suggests big money is diversifying rather than fleeing. Tonight's payrolls and Warsh's June 17 meeting will determine whether this broadening continues or the market snaps back into its chip-only mode.This briefing is for informational purposes only and does not constitute investment advice.