SG Morning Brief | Dow Hits Record as Oil Crashes to $89, PDD Plunges 10% on Double Miss

US Overnight

The Dow rose 182.60 points (+0.36%) to a new record close of 50,644.28, also hitting an intraday all-time high. The S&P 500 ticked up 0.02% to 7,520.36, another closing record. The Nasdaq edged 0.07% higher to 26,674.73. The main driver was a 5.55% collapse in WTI crude to $88.68 — its lowest since early April — after Iranian state media reported the country is committed to restoring Hormuz commercial traffic to pre-war levels within one month. The White House denied the report as a "complete fabrication," but oil sold off regardless. JPMorgan fell 2% after CEO Jamie Dimon said the bank could spend up to $20 billion on an acquisition. Bank of America warned the market is "running out of room" and investors should prepare for a summer pullback.

Key Movers

PDD Holdings (PDD) -10% — PDD plunged 10.38% to $86.61 after a double miss on Q1 earnings. EPS of $1.38 missed the $2.13 consensus by 35%, and revenue of RMB 106.2 billion ($15.4B) fell short of the RMB 109.82 billion estimate. Net income declined 17% YoY as the company continued heavy investment in Temu's supply chain with no near-term pivot signaled. The stock is now down over 16% year-to-date.

Micron (MU) +4% — Micron rose 3.63% to $928.41, extending gains from Tuesday's 19% surge that pushed it past $1 trillion in market cap. The stock opened at $955.66 and hit $956.16 intraday before selling off to a low of $888.15, then rallying back into the close — a volatile session reflecting profit-taking and dip-buying in equal measure.

After hours, Snowflake (SNOW) +37% — Snowflake surged 37.14% to $240.35 in after-hours trading after reporting Q1 revenue of $1.39 billion (+33% YoY), beating the $1.32 billion consensus, with adjusted EPS of $0.39 versus $0.32 expected. The standout was a $6 billion commitment from AWS to use Amazon's new Graviton AI CPU chips through Snowflake's platform — one of the largest enterprise AI infrastructure deals this year. Salesforce fell roughly 3% after hours on light full-year guidance.

SGX Preview

The STI closed at 5,070.55 on Monday. DBS is near S$62.18 and UOB near S$37.91. Oil crashing to $89 is unambiguously positive for Singapore: lower energy costs ease inflation, support consumer spending, and reduce import bills for the trade-dependent economy. The PDD selloff may pressure China-linked Singapore names, but the broader macro backdrop is improving rapidly. Today's Q1 GDP second estimate (8:30 PM SGT) will be closely watched.

Asia Pre-Market

S&P 500 futures are up 0.35%, Nasdaq futures up 0.65%, and Dow futures up 0.36%. Brent crude is at $94.18 (-2.58%), continuing its descent from $100+. Gold is at $4,478 (-1.25%) and Bitcoin at $75,842 (-1.63%). VIX is at 16.87. The Snowflake surge and easing oil should provide a risk-on start for Asian markets, partially offset by the Salesforce miss and PDD hangover.

Today's US Earnings and Economic Calendar

Data Spotlight: Q1 GDP Second Estimate — The advance estimate showed the economy growing at a subdued pace under the weight of $100+ oil and geopolitical uncertainty. Today's revision will either confirm that resilience or flag deeper weakness. With oil now crashing toward $90 and the Iran deal narrative gaining traction, Q2 growth could look meaningfully better — but only if the Hormuz reopening actually materializes. Tomorrow's Core PCE is the week's final macro test.

One More Thing

Oil at $89 is the story. Not the Dow record. Not even Snowflake's 37% pop. WTI has fallen from $106 three weeks ago to $89 today — a 16% decline that, if sustained, rewrites the inflation outlook for the rest of 2026. At $89 oil, gasoline should fall below $4 per gallon within weeks, easing the consumer squeeze that pressured Walmart and every retailer this earnings season. At $89 oil, headline CPI decelerates, the 30-year yield retreats from 5%, and the rate hike narrative fades. The Iranian claim about restoring Hormuz traffic may be a "complete fabrication" per the White House, but the market is trading as if it's real. If it turns out to be true, $80 oil is next. If it's not, $100 oil returns and so does the inflation panic. Tomorrow's PCE will be the first data point that reflects the old reality. The market is already pricing the new one.

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