SG Morning Brief｜Chip Rout Sinks Nasdaq as Bond Yields Bite

US Overnight

S&P 500 closed -0.58% at 7,700.04, Nasdaq -1.12% at 26,346.88, Dow -0.20% at 53,354.43 — a third straight losing session as surging global bond yields and fading US-Iran peace hopes rattled risk appetite. The 10-year Treasury yield eased 1.9 bps to 4.706% after touching 4.74% intraday, while the 30-year yield hovered near 5.32%, a 19-year high. The PHLX Semiconductor Index tumbled more than 5%, its worst single-session drop in months, as memory-chip names bore the brunt of the selling.

Intel (INTC) -6.58% — Shares slumped to $96.69 as the broader semiconductor rout intensified. The PHLX Semiconductor Index fell more than 5%, with memory-chip names SanDisk and SK Hynix each plunging roughly 9%. Elevated bond yields and the stalled US-Iran ceasefire, which has kept Brent crude above $91/bbl, compounded the selloff by raising both discount-rate and input-cost concerns. The rout also pulled down Marvell, ARM Holdings, and Teradyne by more than 5% each.

Meta Platforms (META) -4.14% — Shares fell sharply as investors weighed the risk of a major lawsuit accusing the company of contributing to teen addiction through its social-media platforms. Trading volume reached $11.4 billion, and commentary from Jim Cramer's investment club flagged significant litigation exposure. The communication-services sector was the weakest in the S&P 500 on the day, with Meta leading the decline.

Baidu (BIDU) -13.15% — The Chinese search giant tumbled after reporting Q2 net profit down 68% year-on-year to approximately RMB 2.3 billion, with revenue declining to RMB 31.3 billion — both below consensus expectations. Core AI new-business revenue reached RMB 12.5 billion and intelligent-cloud infrastructure grew 50%, but the steep profit miss overshadowed AI progress. Baidu also announced plans for a Hong Kong dual primary listing within the year, adding to the cautious tone.

SGX Preview

STI closed -1.2% at 5,701.40 on Tuesday, shedding 67.06 points in a broad decline that saw losers outnumber gainers 341 to 250. DBS fell 1.5% to S$75.72; OCBC edged up 0.9% to S$31.79. UOB traded ex-dividend (S$0.88) on August 17, which weighed on the counter. Singtel gained 4.7% to S$4.45, while SIA slipped 0.6% to S$7.05. Hongkong Land was the worst STI performer, down 2.9% to US$8.33. The overnight US tech rout — particularly the 5%+ semiconductor selloff — points to a defensive open for SGX, with bank stocks likely to absorb the bulk of any further index-level pressure.

Asia Pre-Market

S&P 500 futures sit -0.47% at 7,732.50 and Nasdaq 100 futures -1.27% at 29,714.00 as of the latest Asia-session print, extending the tech-led selling. WTI crude trades at $84.36/bbl (+0.74%), with Brent at $91.04/bbl, as the Strait of Hormuz stalemate between the US and Iran continues to support oil prices. Gold last at $4,451.90/oz (-0.49%), pressured by the elevated yield environment. Bitcoin trades around $64,130, up roughly 1% from Monday's open. The negative futures tone, combined with elevated oil and bond yields, suggests a cautious-to-negative start for SGX, with the FOMC minutes release later today adding a layer of event risk.

Today's US Earnings & Economic Calendar

Earnings (today):
Target (TGT) — pre-mkt, consensus EPS $2.31, revenue $26.15B
Lowe's (LOW) — pre-mkt, consensus EPS $4.24, revenue ~$26.2B
TJX Companies (TJX) — pre-mkt, consensus EPS $1.19, revenue $15.18B
Analog Devices (ADI) — pre-mkt, consensus EPS $3.33
Estee Lauder (EL) — pre-mkt, consensus EPS $0.32

Economic data (today):
FOMC Meeting Minutes (July) — 2:00 PM ET / 2:00 AM SGT (Thu)
EIA Crude Oil Inventories — 10:30 AM ET / 10:30 PM SGT

Spotlight: Lowe's (LOW) — Consensus EPS $4.24 on revenue of approximately $26.2 billion (+9.3% YoY), though the growth is largely acquisition-driven from Foundation Building Materials and Artisan Design Group. Key watch items: (1) comparable-store sales trajectory against a softening US housing market, (2) margin guidance given elevated input costs and wage pressures, (3) commentary on the home-improvement demand pipeline into the second half. Lowe's stock is down roughly 10.5% year-to-date. The FOMC minutes at 2:00 PM ET are the macro highlight — economists expect a hawkish tone, with growing support for further rate hikes discussed at the July meeting.

One More Thing

Wednesday's session is shaped by two cross-currents: the FOMC minutes tonight could reinforce the higher-for-longer rate narrative that has driven bond yields to multi-decade highs, while a wave of consumer-discretionary earnings — Target, Lowe's, TJX — offers a real-time read on the health of the US consumer. For SG investors, the combination of a 1.2% STI drop on Tuesday and negative US futures suggests defensive positioning is warranted. The FOMC release comes after SGX close, meaning Thursday's open will be the first opportunity to price in any hawkish surprises.

This briefing is for informational purposes only and does not constitute investment advice.