SG Morning Brief | Nasdaq Falls Below Friday's Crash Close as Chip Volatility Intensifies, CPI Tonight

US OvernightThe S&P 500 fell 0.26% to 7,386.65 and the Nasdaq dropped 0.97% to 25,678.82 — now lower than Friday's crash close, erasing Monday's entire rebound. The Dow gained 86.10 points (+0.17%) to 50,872.11 as the rotation out of tech into consumer and defensive stocks continued. The Philadelphia Semiconductor Index plunged as much as 8.6% intraday — a near-panic move — before recovering to close down 2%. The volatility underscored how fragile chip sentiment has become since Broadcom's miss: every intraday rally is being sold. Trump teased new Iran strikes, adding to the geopolitical overhang. Apple fell 3.6%, extending its WWDC sell-the-news decline after CEO Tim Cook delivered what was described as his final Worldwide Developers Conference keynote. The US trade deficit has been cut nearly in half since the "liberation day" tariffs, falling to $55.9 billion in April.Key MoversApple (AAPL) -4% — Apple fell 3.6%, leading the Magnificent Seven lower for the second straight session. The stock has now dropped roughly 5.5% since Monday's WWDC keynote, where Cook unveiled a major Siri AI overhaul but disclosed delayed rollouts in key international markets. Analysts remain underwhelmed by the AI strategy, and Cook's emotional farewell from the stage added uncertainty about the leadership transition.Marvell (MRVL) -8% — Marvell gave back 7.6%, erasing a significant portion of the prior week's gains that had been fueled by Jensen Huang's Computex endorsement and S&P 500 inclusion news. The stock is caught in the gravitational pull of the broader chip correction, even as its AI networking fundamentals remain intact. Broadcom fell another 1.1%.Home Depot (HD) +4% / Nike (NKE) +3% — The consumer and defensive rotation accelerated. Home Depot gained 3.73% and Nike rose 3.25% as investors sought safety in stocks with earnings visibility that don't depend on the AI capex cycle. The divergence between SOX (-2%) and consumer staples (+1%+) has been the defining trade of the past week.SGX PreviewThe STI was near 5,070 earlier this week. DBS is near S$62.18 and UOB near S$37.91. The Nasdaq's failure to hold Monday's rebound is a negative signal for Asian tech sentiment, but the Dow's resilience and consumer rotation could support Singapore banks and defensive names. Tonight's CPI is the dominant catalyst — a hot print would confirm the stagflation narrative that has been building since the 172,000 NFP print on Friday.Asia Pre-MarketS&P 500 futures data was not yet available. Tuesday's session ended with the Nasdaq closing below Friday's crash level, which is technically significant — it means the 4.18% Friday selloff has not been recouped. The chip sector's intraday -8.6% plunge before recovering to -2% suggests extreme volatility and institutional selling pressure. Markets are in a holding pattern ahead of CPI tonight.Today's US Earnings and Economic CalendarEventTime (ET)Time (SGT)ConsensusMay CPI (MoM)8:30 AM8:30 PMTBDMay CPI (YoY)8:30 AM8:30 PMTBDMay Core CPI (MoM)8:30 AM8:30 PMTBDThursday: May PPI. Friday: SpaceX IPO. June 17: Warsh's first FOMC.Data Spotlight: May CPI — This is the most consequential inflation print since April's 3.8% YoY shocker. The market enters CPI with NFP at 172,000 (doubled consensus), rate hike odds at 75%, the 30-year yield above 5%, and the chip sector in a correction. A cooler-than-expected print could stabilize the selloff and give Warsh cover to hold at his first FOMC. A hot print cements the hike narrative and likely accelerates the tech rotation.One More ThingThe SOX plunging 8.6% intraday on a Tuesday with no new fundamental catalyst tells you this is no longer about Broadcom's revenue miss. It is about positioning. The semiconductor sector had rallied 75% year-to-date before the correction began. Hedge funds, momentum traders, and retail investors who piled in during the AI euphoria are now rushing for the exit at the first sign of trouble. Monday's rebound was a dead cat bounce — the Nasdaq is now below Friday's crash close. The healthy part of this story is the rotation: Home Depot, Nike, and healthcare stocks are absorbing the outflows, which means capital is moving within equities rather than leaving them. That distinction matters. A correction within a bull market is normal. A correction that turns into a broad exodus is not. Tonight's CPI will determine which one this is.This briefing is for informational purposes only and does not constitute investment advice.