• STI: slid 3.5% to 5,412.96 on Thursday, capping a two-day drop of about 5%.

• Banks rout: $DBS (D05.SG)$ -4.7% to S$73.85, $OCBC (O39.SG)$ -4.3% to S$29.00, $UOB (U11.SG)$ -5.2% to S$40.25.

• US overnight: Nasdaq -1.25% to 27,193.34 as an OpenAI revenue miss hit AI and chip names; Dow +0.1% to 51,231.64.

• Oil: WTI +3.9% to ~$91.8/bbl and Brent +4.1% to ~$104 on fresh Iran tensions before Trump cooled the market.

• Today: Delta Air Lines Q3 pre-market; U. Michigan consumer sentiment at 10.00pm SGT.

Singapore Open

Singapore's benchmark took a second straight heavy hit on Thursday, closing 3.5% lower at 5,412.96 after Wednesday's 1.6% drop. The move was a reset in the three banks that together make up roughly 59% of the index: $DBS (D05.SG)$ fell 4.7% to S$73.85, $OCBC (O39.SG)$ lost 4.3% to S$29.00 and $UOB (U11.SG)$ sank 5.2% to S$40.25, all from near-record levels. The selling began with OCBC's 5.9% slide on Wednesday, and analysts framed Thursday as profit-taking and a valuation reset rather than a bank-specific problem, amplified by higher bond yields and oil-driven inflation risk. Defensives fared better: $Singtel (Z74.SG)$ eased 1.4% to S$4.24 and $Singapore Airlines (C6L.SG)$ slipped 1.2% to S$6.60.

Singapore Macro

The global rate-and-oil shock lands just before a key local event: MAS's Monetary Policy Statement and third-quarter advance GDP are due no later than 14 October, 8.00am SGT. Economists at OCBC and Standard Chartered expect MAS to deliver another very slight steepening of the S$NEER slope, similar to July, because Brent above US$104 feeds directly into imported inflation for a small, energy-importing economy. The transmission runs through the SGD and local rates: a faster-appreciating currency keeps short-end SGD rates below US rates, but a 10-year Treasury yield near 5.30% still lifts Singapore government bond yields, squeezing REIT funding costs and bank margins — part of why the bank-led selloff has hit the STI so hard.

US Overnight

US stocks finished mixed on Thursday as new OpenAI details spooked the AI trade. The Nasdaq Composite fell 1.25% to 27,193.34 and the S&P 500 lost 0.47% to 7,765.36, while the Dow added 51.77 points (0.1%) to 51,231.64 on energy and defensive strength. The VIX jumped 6.1% to 16.0, and the 10-year Treasury yield touched 5.305% as oil-driven inflation fears kept Fed hike bets alive.

Key Movers

$Nvidia (NVDA.US)$ -2.9% — the AI bellwether fell after OpenAI told investors it hit roughly US$50 billion in annualized revenue at end-September, about US$20 billion below estimates, overshadowing Nvidia's newly authorised US$235 billion buyback through January 2028.

$AMD (AMD.US)$ -3.9% and $Taiwan Semiconductor (TSM.US)$ -3.1% followed the chip complex lower; TSM slid despite record Q3 revenue of about NT$1.49 trillion (US$46.7 billion) as investors locked in gains into its pre-earnings quiet period.

Elsewhere the tape rotated: $Chevron (CVX.US)$ rose with crude, $Chipotle (CMG.US)$ jumped about 6% on a report $Starbucks (SBUX.US)$ has explored a takeover, $MicroStrategy (MSTR.US)$ slid ~6.8% as Bitcoin weakened, and $Palantir (PLTR.US)$ added ~2% on a Goldman Sachs upgrade to Buy with a US$230 target.

Asia Pre-Market

US futures were little changed early Friday SGT, with S&P 500 e-minis up about 0.1% and Nasdaq futures near flat, as oil's pullback from intraday highs offset the tech-led selling. WTI settled up 3.9% near US$91.8 a barrel and Brent up 4.1% near US$104 after a tanker attack off Qatar and reports the US could escalate against Iran — before Trump said there would be no strike before the midterms, knocking crude off its highs. Gold traded around US$4,120 an ounce, near a two-month low, while Bitcoin held around US$81,000, down about 1.6% over 24 hours. For SGX, the question is whether the bank rout extends or buyers step in after a ~5% two-day reset.

Today's US Earnings and Economic Calendar

Earnings Spotlight: $Delta Air Lines (DAL.US)$ — Delta reports Q3 before the US open (about 7.00pm SGT), with consensus at $1.92 EPS on roughly US$17.6 billion in revenue versus company guidance of $2.00-2.50. With jet fuel elevated near US$92 a barrel, Delta's commentary on fuel costs and premium-travel demand is an early consumer read — and a reference point for $Singapore Airlines (C6L.SG)$, which reports later in the year. The next hard macro catalyst is September CPI on 14 October; a hot print would firm December Fed-hike odds and pressure rate-sensitive names across the Pacific.

One More Thing

The question after a ~5% two-day STI wipeout is whether this is rotation within the market or capital leaving it. Watch how the banks trade into the 14 October MAS decision and the 13-14 October big-bank earnings: if DBS, OCBC and UOB stop falling on bad news and the 10-year yield stabilises below 5.30%, the reset is likely valuation-driven and contained. If yields keep climbing and the chip rout deepens, treat any bounce in Singapore financials as a bear-market rally, not a bottom.

Sources: CNBC, Investing.com, Reuters, OCBC Global Markets Research.

This briefing is compiled with AI assistance from market data and wire reports, and reviewed by the Longbridge editorial team before publication.

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