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Why Did $SGX(S68.SG)Lose Steam On Friday?

The SGX lost steam today, dropping sharply by 5.7% because a huge global macro storm hit Asian markets right before tonight's highly anticipated US Non Farm Payrolls Data.

The selling pressure across the board was triggered by a scary combo of skyrocketing global bond yields with the US 10 year Treasury yield surging to a multi decade high of 5.34%. It is also due to a massive spike in oil prices due to rising geopolitical conflict in the Gulf.

This sudden flare up revived global inflation fears, causing international funds to pull money out of rate sensitive exchanges like Singapore's.

Today's drop is a classic cooling off breathing spell for SGX. The STI Index hit a historic all time high of 5,828.50 points just a month ago.

Today's dip is a great opportunity to buy $STI ETF(ES3.SG). It is holding up beautifully compared to individual stocks. This proves why index investing is the ultimate safety net.

Why Micron Barely Move Post Earnings?

When a company like $Micron Tech(MU.US)prints a massive USD 3 billion revenue beat and its stock barely moves, it triggers an immediate wave of market anxiety. It feels like the ultimate "sell the news" trap.

However if you delve deeper, it is simply undergoing a healthy consolidation pause before the next massive leg up.

Why Micron stalled?

Micron has already experienced a parabolic 270% run over the past year. The market has already priced in a blockbuster quarter into the current share price.

CEO Sanjay Mehrotra has announced Micron is increasing its fiscal 2027 capital expenditure to aggressively build new manufacturing plants. Short term traders preferred immediate stock buybacks instead of seeing the cash funneled into heavy infrastructure.

The Next Leg Up is Inevitable

Micron said that its critical HBM capacity is completely sold out through 2027 and into 2028.

As tech giants deploy trillions of dollars into Agentic AI, the industry bottleneck has shifted from logic processing to memory capacity.

High performance memory is the oxygen of AI and Micron is one of the only 3 companies on Earth capable of producing it at scale.

The Verdict

The smart money treats this flat reaction as an accumulation gift. This temporary pause is the launchpad being built for the next leg up when the focus is shifted to the huge contracted cash flows of 2027 and 2028.

🌟🌟🌟Which is more important: A Hot PCE or Micron's Guidance?

On one side, you have the PCE inflation print. This is the Federal Reserve's favourite economic gauge. If that number comes in hot, showing that consumer price pressure is still stubbornly sticky above the 2% target, the market may throw a tantrum.

Suddenly thoughts of future interest rate cuts evaporate, bond yield spikes and a wave of red sweeps across the broad indexes as investors run for cover. This is the cold hard blanket of macroeconomic reality.

Then the evening arrives. The closing bell rings and $Micron Tech(MU.US)steps into the spotlight.

For investors holding tech, semiconductor stocks or riding the multi trillion dollar AI wave, PCE pales into insignificance compared to Micron's forward guidance.

Micron isn't just reporting numbers. It is delivering a verdict on the entire AI infrastructure cycle.

If Micron confirms that their HBM is entirely presold through 2027, and that hyperscaler demand is accelerating, it won't matter what the Fed does with interest rates. That kind of incredible growth will completely overpower the PCE news.

So what matters more? As an investor of NVIDIA$NVIDIA(NVDA.US) and DRAM ETF$Roundhill Memory ETF(DRAM.US), Micron's earnings report is more important to me.

Let's brace for a wild 24 hours to find out.

UOB Market Momentum

🌟🌟🌟Watching $UOB(U11.SG)rip higher this week to lead the STI gainers at SGD 43.29 was an absolute master class in resilience. The Fed's latest rate hike handed UOB a massive lifeline. With 66% of its revenue tied directly to net interest income, UOB is perfectly positioned to capture this margin expansion.

Jefferies has raised UOB's target price to SGD 48 too. UOB is finally catching up to the other 2 banks, unlocking massive value and rewarding investors who ignored the noise and trusted UOB's fundamentals.

I believe that $Micron Tech(MU.US)will close up more than 8.6% post earnings. Micron's earnings moves are notoriously explosive. When Micron beats and raises guidance during a memory boom, it regularly clocks double digit percentage gains the next day.

Since Micron's HBM capacity is fully presold, I believe the upside breakout will be above USD 1145 to USD 1175. Baird recently pushed its price target for Micron to USD 1520.

What to Expect from Micron's Earnings

🌟🌟🌟$Micron Tech(MU.US)is scheduled to report its fiscal 4th quarter 2026 financial results on Wednesday September 30 2026. This report is widely considered to be the single most critical catalyst for AI & semiconductor memory stocks this year.

Wall Street expects a phenomenal earnings explosion with quarterly revenue projected to surge 350% year over year to USD 50.95 billion and adjusted earnings forecast to jump over tenfold to USD 31.63 per share.

I believe Micron will move up more than 8.6% post earnings. Since their HBM capacity is fully presold, confirming high pricing power for 2027 will easily trigger a huge breakout above 8.6%.

If Micron beats expectations and confirms severe HBM shortages extending deep into fiscal 2027, it will jump USD 1145 or more, towards its all time high of USD 1213.37.

Exciting times are ahead for Micron.

🌟🌟🌟What Should Investors Do When Trump Rejected Iran's Latest Ceasefire Truce?

Just last Friday, the market was breathing a sigh of relief. Iran floated a beautiful shiny 7 day truce plan to reopen the Strait of Hormuz. Then fast forward to the weekend and President Trump said No to Iran's proposal.

Oil prices snapped right back to over USD 107 a barrel. Meanwhile the US Indexes slid down the banister in a panic over renewed inflation.

What Should Investors Do?

Stay calm and let the market recover. I will continue to dollar cost average into $State Street Portfolio S&P 500 ETF - SPDR(SPYM.US)because I am building an unbreakable financial fortress for the decades ahead.

I invest in SPYM because I believe in the relentless compounding power of the American economic engine. I am instantly buying a stake in 500 largest, most dominant and most innovative corporate titans on the planet.

But here is the real secret - SPYM charges an absolute rock bottom expense ratio of just 0.02%. That means I get to keep 99.98% of the market gains in my pocket. Maximum power at minimum cost! That is my favourite way of investing.

The Long End Breaking: Why the 5.5% Treasury Bond Changes Everything

🌟🌟🌟The bedrock of the global financial system has just experienced a huge structural fracture. For the first time in 22 years, the 30 year US Treasury yield ripped through 5.5% while the benchmark 10 year yield touched a menacing 19 year high of 5.23%.

This isn't the Federal Reserve pulling short term rates higher. This is the open market actively revolting against the long term price of money.

The long end is breaking because bond investors are demanding a huge painful premium to compensate for a reality that US government has to accept.

My Take:

I will continue to dollar cost average my index ETFs like $State Street Portfolio S&P 500 ETF - SPDR(SPYM.US)because I am letting the "weighing machine" of the market do the heavy lifting while neutralising the threats of a high interest rate environment.

As Benjamin Graham famously said:

"The stock market is a voting machine in the short term but a weighing machine in the long term."

PCE Doomsday or AI Discount? Navigating the 5.5% Bond Shock

🌟🌟🌟The latest PCE report arrives at a time when there is a full scale bond market meltdown. The 10 year US Treasury yield has just reached 5.5% yield, carving out a fresh multi decade high.

This sudden spike signals that institutional bond investors are completely losing faith that inflation is under control. When guaranteed government debt yields a huge 5.5%, the mathematical gravity pull on high valuation growth stocks becomes severe.

Wall Street expects Core PCE to print at 3.4%. If tomorrow's report is hotter than expected, the 5.5% Treasury yield may go higher. This is bad news for the market.

My Take

I will continue to dollar cost average $State Street Portfolio S&P 500 ETF - SPDR(SPYM.US)which represents 500 of the best US stocks as time in the market completely obliterates timing the market. The PCE report is only a single data in a multi decade journey. Let the traders stress over the Fed's next phase while my automated wealth engine quietly compounds in the background.

Is It Time to Buy IGV and sell SOXX?

"Buy IGV $iShares Expanded Tech Software Sector ETF(IGV.US)and sell SOXX$iShares Semiconductor ETF(SOXX.US)" trend is a temporary interest rate driven rotation. Trying to dance between hardware and software sectors during a bond market panic is not a good move.

Why?

While it is true that software delivered its strongest single day performance against chipmakers in 25 years, this is not the death of silicon. The extreme cash generation from data center buildouts is still backing semiconductor fundamentals. Software applications can only grow as fast as the hardware chips allow them to compute.

While tech valuations drop when the 10 year Treasury yield hit over 5%, SOXX $iShares Semiconductor ETF(SOXX.US)has already undergone a massive valuation reset down to 20x forward earnings. It is no longer dangerously overpriced.

The Bottom Line

Don't get caught in Wall Street's daily musical chairs. Ignore the temporary software vs hardware rotation headlines. Continue to dollar cost average into QQQM $Invesco Nasdaq 100 ETF(QQQM.US) is the way to go for the long term investor.

It is time in the market that counts, not timing the market.

🌟🌟🌟The market just threw a bucket of cold water on our record breaking tech party. A scorching hot US PMI reignites expectations of an October rate hike to 70%, reminding everyone that economic resilience can quickly warp into an overheated nightmare.

The 10 year Treasury yield punched through the critical 5% threshold to hit a 19 year high.

What should investors do?

My Take: I will continue to dollar cost average $Invesco Nasdaq 100 ETF(QQQM.US)as I believe it can only go up long term.

🌟🌟🌟Are you running with the Bulls on $Sandisk(SNDK.US)or standing with the lone bear Michael Burry?

Team Wall Street : Data is the new oil thesis.

$NVIDIA(NVDA.US)super chips are the brains but those brains are useless if they have no where to store their massive AI datasets.

Right now, there is a huge global memory shortage. SanDisk has unprecedented pricing power because hyperscalers are desperately lining up at their door, waving blank cheques just to secure fast enterprise SSDs.

Wall Street looks at this setup and sees a multi year cash machine.

Team Burry: The Mirage

Burry is warning that memory producers are hitting ridiculous prices fueled by AI hype. To Burry, the US stock market looks like the 2000 dotcom bubble. When the cycle turns, everything will plummet.

My Take: I am running with the Bulls for now, but keeping one foot firmly planted right next to the emergency exit.

🌟🌟🌟I am excited by the latest news that $BABA-W(09988.HK)has just unveiled its new AI chip - the Zhenwu V900 AI accelerator chip. This new custom chip triples the performance of its predecessor and can scale into monolithic clusters of 500,000 units to train frontier AI models surpassing 5 to 10 trillion parameters.

Buying Alibaba now is like purchasing a massive state of the art logistics fortress that the market has mistakenly priced as a struggling corner convenience store.

While the US AI favourites like $NVIDIA(NVDA.US)trade at eye watering valuation multiples above 30x sales, Alibaba is trading at a forward P/E ratio of 9.2x.

Here in Singapore we are lucky that we can also buy Alibaba SDR $Alibaba HK SDR 5to1(HBBD.SG)without having to worry about conversion rates and receive dividends in Singapore dollars too.