<h2 id="7z83rjagn">US Overnight</h2><p>The Dow plunged 953 points (-1.87%) to 49,918.78, falling below 50,000 for the first time since late May. The S&amp;P 500 dropped 1.62% and the Nasdaq tumbled 1.98% to 25,169.50, closing near session lows. All eleven S&amp;P sectors declined. The selloff had two catalysts. First, May CPI came in at 4.2% year-over-year, the highest since May 2023. While the headline figure was broadly in line with consensus, the three-year-high reading crushed any remaining hope for rate cuts in 2026 and boosted expectations that Warsh will hike at his first FOMC on June 17. Energy prices remained the biggest driver of inflation amid the protracted Iran conflict. Second, the US struck Iranian positions again overnight after an Apache helicopter was downed, with Trump declaring Iran has &#34;taken too long&#34; to negotiate and warning he would &#34;hit them very hard.&#34; Oil jumped on the escalation.</p><h3 id="nb4o2r98l">Key Movers</h3><p><strong>Super Micro Computer (SMCI) -28%</strong> — SMCI plunged 28% after announcing an equity financing plan, its largest single-day decline in months. The move echoed Alphabet's $80 billion equity raise earlier in the quarter — both dilutive and poorly timed into a market already rotating out of AI infrastructure names.</p><p><strong>Chip sector — SOX -3.6%</strong> — The Philadelphia Semiconductor Index fell 3.6%, underperforming the broad market for a second straight session. Qualcomm dropped nearly 7%, Broadcom fell over 5%, and Nvidia declined nearly 4%. The S&amp;P and Nasdaq both closed at one-month lows.</p><p><strong>After hours, Oracle (ORCL) -10%</strong> — Oracle reported record Q4 revenue of $19.2 billion (+21% YoY), beating the $19.1 billion consensus, with non-GAAP EPS of $2.11, topping the $1.96 estimate by 8%. Cloud revenue surged 47% to $9.9 billion and remaining performance obligations hit a record $638 billion. The company confirmed FY2027 guidance of $90 billion and raised EPS guidance to $8.05. Despite the clean beat, the stock fell over 10% after hours as capex of $55.7 billion and a gross margin step-down spooked investors.</p><h2 id="ff306sxva">SGX Preview</h2><p>The STI was near 5,070 earlier this week. DBS is near S$62.18 and UOB near S$37.91. The overnight rout is the worst backdrop for Singapore markets since early June. CPI at a three-year high and resumed Iran strikes create a double headwind: inflation pressures Singapore's import costs while geopolitical risk elevates oil prices. Banks may find some support from the rate hike narrative, but a 953-point Dow drop tends to drag all Asian markets lower. Oracle's after-hours decline adds to the tech pessimism.</p><h2 id="xq1on36nk">Asia Pre-Market</h2><p>S&amp;P 500 futures data was not yet available. The session ended at day lows with no signs of dip-buying into the close, which is technically bearish. Oil is rising on the Iran strikes, gold likely caught a bid on safe-haven demand. The Dow below 50,000 is psychologically significant — it had only crossed that level for the first time a month ago. Tomorrow's SpaceX IPO arrives into a market that has lost roughly 3% from its highs.</p><h2 id="kj075z99h">Today's US Earnings and Economic Calendar</h2><figure class="table"><table><thead><tr><th>Event</th><th>Time (ET)</th><th>Time (SGT)</th></tr></thead><tbody><tr><td>May PPI (MoM)</td><td>8:30 AM</td><td>8:30 PM</td></tr><tr><td>Initial Jobless Claims</td><td>8:30 AM</td><td>8:30 PM</td></tr></tbody></table></figure><figure class="table"><table><thead><tr><th>Company</th><th>Timing</th></tr></thead><tbody><tr><td>Adobe (ADBE)</td><td>Post-mkt</td></tr><tr><td>Lennar (LEN)</td><td>Post-mkt</td></tr></tbody></table></figure><p>Tomorrow: <strong>SpaceX IPO</strong> ($135/share, $1.75T valuation, $75B raise). Warsh's first FOMC is June 17.</p><p><strong>Data Spotlight: May PPI</strong> — After CPI at 4.2%, PPI tonight completes the inflation picture. April PPI was a shocking +1.4% MoM and +6% YoY. If May PPI stays elevated, the case for a rate hike at the June 17 FOMC becomes overwhelming. A softer print could offer a glimmer of hope that the energy-driven cost shock is peaking.</p><h2 id="ny3a5t60e">One More Thing</h2><p>CPI at 4.2% and the US bombing Iran on the same day is not a coincidence — they are the same story. The war is why oil is above $90, which is why gasoline is $4.50, which is why CPI is at a three-year high, which is why the 30-year yield is above 5%, which is why rate hike odds are at 75%. Every link in that chain leads back to the Strait of Hormuz. The market has spent three months trying to trade AI earnings as if geopolitics does not exist. Wednesday was the day that stopped working. The Dow lost 953 points, every sector fell, and Oracle beat earnings and still dropped. SpaceX's record IPO arrives tomorrow into this backdrop. The largest offering in Wall Street history landing during the worst week for stocks since March is either spectacularly well-timed or spectacularly ill-timed. We will know by Friday's close.</p><p><i>This briefing is for informational purposes only and does not constitute investment advice.</i></p>

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<p>US OvernightThe Dow plunged 953 points (-1.87%) to 49,918.78, falling below 50,000 for the first time since late May. The S&P 500 dropped 1.62% and the Nasdaq tumbled 1.98% to 25,169.50, closing near session lows. All eleven S&P sectors declined. The selloff had two catalysts. First, May CPI came in at 4.2% year-over-year, the highest since May 2023.</p>

- The Dow plunged 953 points (-1.87%), closing below 50,000 for the first time since May, driven by a high May CPI of 4.2% and escalating tensions with Iran.  
- The market selloff affected all S&P sectors, with notable declines in the semiconductor industry and a post-earnings drop for Oracle despite strong results.  
- The backdrop of high inflation and geopolitical risks suggests further rate hike expectations, particularly ahead of upcoming economic events and SpaceX's IPO.

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SG Morning Brief | Dow Plunges 953 Points on CPI Three-Year High and Resumed Iran Strikes