--- title: "SG Morning Brief｜STI Falls 1.4% Before Fed's First Hike Since 2023" type: "News" locale: "en" url: "https://longbridge.com/en/news/299105818.md" description: "The STI fell 1.4% to 5,638.64 on Tuesday as AI-slowdown fears and a US$106 oil spike rattled risk assets." datetime: "2026-09-16T00:05:11.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/299105818.md) - [en](https://longbridge.com/en/news/299105818.md) - [zh-HK](https://longbridge.com/zh-HK/news/299105818.md) generator: "portal-rs" --- # SG Morning Brief｜STI Falls 1.4% Before Fed's First Hike Since 2023 ## Key Points - The Straits Times Index closed at 5,638.64 on Tuesday, down 1.39% (79.38 points), with 346 losers against 176 gainers. - DBS fell 1.17% to S$76.75 as AI-slowdown calls from US tech leaders triggered a broad regional risk-off. - US stocks fell for a sixth session in seven; the 10-year Treasury yield touched 5.04%, its highest since 2007, as WTI crude jumped 4.4% to US$105.83. - The Federal Reserve is expected to deliver its first rate hike since 2023 at 2.00am SGT Thursday, with a 25bp move to 4.00% roughly 94% priced in. - Watch Singapore banks and REITs today, the SGX names most sensitive to the Fed's rate path and the surge in global yields. ## Singapore Open The Straits Times Index fell 1.39% (79.38 points) to 5,638.64 on Tuesday, as calls from top US AI executives and chipmakers to slow the pace of artificial-intelligence development rattled regional sentiment. Losers outnumbered gainers 346 to 176, with about 1.1 billion securities worth S$1.8 billion changing hands. $DBS (D05.SG)$ led the lenders lower, closing down 1.17% at S$76.75, with $OCBC (O39.SG)$ and $UOB (U11.SG)$ also in the red as elevated US Treasury yields weighed on rate-sensitive financials. DBS separately said it would vigorously resist a S$1.3 billion 1MDB-linked claim. $Singtel (Z74.SG)$ is another name to watch: analysts told The Business Times the latest Optus network outage, less severe than last September's 13-hour disruption but still affecting some emergency calls, could force the telco to accept a lower price for the minority stake it is seeking to sell in the Australian unit. ## Singapore Macro The Monetary Authority of Singapore steers policy through the Singapore-dollar nominal effective exchange rate (S$NEER), not an interest rate. In April 2026, MAS slightly steepened the currency's appreciation slope to cap imported inflation, and it projects 2026 core inflation of 1.0%-2.0%. That framework matters today. With WTI crude back above US$105, a Fed hike plus a firmer US dollar transmits through two channels: higher USD funding costs push up local rates, while imported energy inflation keeps MAS biased toward a stronger SGD. For SGX investors the split cuts both ways, with banks getting net-interest-margin support while REITs and other high-yield plays face repricing risk on financing costs. ## US Overnight Wall Street fell for a sixth time in seven sessions on Tuesday. The Dow lost 328.09 points (0.63%) to 52,093.11, the S&P 500 dropped 0.45% to 7,585.73, and the Nasdaq Composite slid 0.78% to 25,981.57. The 10-year Treasury yield closed near 4.995% after touching 5.04%, its highest since 2007, while energy was the only S&P 500 sector to advance, up 2.3%. The catalyst was oil: the closure of a key Saudi crude pipeline stoked supply fears, sending Brent up 2.9% to US$108.75 and WTI up 4.4% to US$105.83. Markets now price a 94% chance of a 25 basis-point hike on Wednesday, up from 59% a week ago. ## Key Movers **$Dave & Buster's (PLAY.US)$ -19%** - the entertainment chain tumbled after a second-quarter revenue miss, the clearest single-stock casualty of the risk-off tape. **$Coinbase (COIN.US)$ and crypto proxies fell** - Bitcoin slid about 5.8% to around US$76,000 after the US Senate declined to advance the Digital Asset Market Clarity Act, dragging listed crypto names lower. **$Amazon (AMZN.US)$ -1.83% to US$248.89** - higher rates raise the financing cost of the company's capital-intensive cloud and AI build-out, and AWS flagged continued service disruptions in Bahrain and the UAE. $Nvidia (NVDA.US)$ bucked the trend, edging higher even as Alphabet slipped. ## Asia Pre-Market US equity futures pointed modestly lower in early Asian trade, with S&P 500 futures down about 0.3% and Nasdaq 100 futures off about 0.3%, as traders squared positions ahead of the Fed. WTI held near US$105.83, spot gold eased to around US$4,262 an ounce, and Bitcoin traded near US$76,000 after its post-vote drop. The key timing note: the Fed decision lands at 2.00am SGT Thursday, so SGX trades a full session today without knowing the result. Expect cautious, low-conviction trade, with banks and REITs most sensitive to the yield signal. ## Today's US Earnings and Economic Calendar It is a light week for mega-cap earnings. Lennar is the only noteworthy name on today's tape. | Company | Timing (SGT) | Consensus EPS | | --------------- | ------------------------------------------- | ------------- | | Lennar (LEN.US) | Post-mkt (after Wed close, ~4.00am SGT Thu) | US$1.31 | **Earnings Spotlight: Lennar.** The US homebuilder reports fiscal Q3 after Wednesday's close, with consensus at US$1.31 a share on about US$8.4 billion in revenue, down roughly 35% year over year as elevated mortgage rates keep pressuring US housing. The report lands right after the Fed decision, so watch management's comments on orders and gross margin for a read on how much further rates could bite. | SGT | ET | Event | Consensus | | ------------ | ------ | -------------------------- | ------------------ | | 8.30pm | 8.30am | US Retail Sales (Aug) | n/a | | 2.00am (Thu) | 2.00pm | FOMC Rate Decision | 25bp hike to 4.00% | | 2.30am (Thu) | 2.30pm | Fed Chair Press Conference | - | ## One More Thing The tradeable question today is not whether the Fed hikes, a 25bp move is roughly 94% priced, but what the new dot plot implies next. One hike would likely be a relief; a signal of a second hike would pressure rate-sensitive SGX names further. For Singapore portfolios the framework is simple: separate sector rotation (energy up, AI hardware down) from outright de-risking. If oil keeps climbing, MAS's inflation bias keeps the SGD firm and bank margins supported, while REITs absorb the repricing. If the Fed signals more to come, treat rate-sensitive positions as vulnerable until the 2.30am press conference is done. *Sources: The Business Times, The Straits Times, The Wall Street Journal.* *This briefing is for informational purposes only and does not constitute investment advice.* ### Related Stocks - [STI.SG](https://longbridge.com/en/quote/STI.SG.md) - [USO.US](https://longbridge.com/en/quote/USO.US.md) - [BNO.US](https://longbridge.com/en/quote/BNO.US.md) - [SCO.US](https://longbridge.com/en/quote/SCO.US.md) - [UCO.US](https://longbridge.com/en/quote/UCO.US.md) - [D05.SG](https://longbridge.com/en/quote/D05.SG.md) - [DBSDY.US](https://longbridge.com/en/quote/DBSDY.US.md) - [O39.SG](https://longbridge.com/en/quote/O39.SG.md) - [U11.SG](https://longbridge.com/en/quote/U11.SG.md) - [UOVEY.US](https://longbridge.com/en/quote/UOVEY.US.md) - [Z74.SG](https://longbridge.com/en/quote/Z74.SG.md) - [SGAPY.US](https://longbridge.com/en/quote/SGAPY.US.md) - [.DJI.US](https://longbridge.com/en/quote/.DJI.US.md) - [.SPX.US](https://longbridge.com/en/quote/.SPX.US.md) - [.IXIC.US](https://longbridge.com/en/quote/.IXIC.US.md) - [PLAY.US](https://longbridge.com/en/quote/PLAY.US.md) - [COIN.US](https://longbridge.com/en/quote/COIN.US.md) - [AMZN.US](https://longbridge.com/en/quote/AMZN.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [GOOGL.US](https://longbridge.com/en/quote/GOOGL.US.md) - [GOOG.US](https://longbridge.com/en/quote/GOOG.US.md) - [.NDX.US](https://longbridge.com/en/quote/.NDX.US.md) - [LEN.US](https://longbridge.com/en/quote/LEN.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) - [LEN.B.US](https://longbridge.com/en/quote/LEN.B.US.md) ## Related News & Research - [Brent Tops $102 As Mideast Conflict Intensifies, HSBC Hikes Oil Forecast](https://longbridge.com/en/news/298584876.md) - [ROI-Oil markets survived the Iran war sprint. 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