STI Falls 1.7% to 4,963.67 on Tech Rout and Middle East Tensions, June 08

By Danny Kontos

June 8, 2026

08:01 PM

3 min read

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Key Points

Global tech selloff triggered by Broadcom's weak AI chip guidance spreads to Singapore.

Semiconductor stocks including AEM and InnoTek fall 3-4% as investors flee AI positions.

Israel-Iran military escalation adds geopolitical risk and weighs on regional sentiment.

STI's C+ rating and neutral RSI suggest caution until market stabilizes.

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The Straits Times Index fell 1.7% to 4,963.67 on June 8, losing 86.29 points as Singapore joined a broader Asian selloff. The decline was driven by two factors: a global technology rout triggered by weak guidance from chip designer Broadcom, and escalating military tensions between Israel and Iran. Investors pulled money from semiconductor and artificial intelligence stocks across the region.

Why Tech Stocks Crashed Across Asia

Broadcom reported second-quarter revenue that missed analyst expectations, sparking fears that artificial intelligence spending has run ahead of actual demand. The US Nasdaq fell 4% on June 5 as major investment funds exited AI and microchip positions. This triggered a cascading selloff across Asia on June 8. Singapore’s semiconductor-linked stocks fell hardest: AEM dropped 3%, UMS lost 1.2%, and precision engineering firm InnoTek declined over 4%. South Korea’s Kospi index plunged 8.3%, while Japan’s Nikkei fell 3.9% and Taiwan’s benchmark dropped 3.5%.

Middle East Conflict Adds to Market Pressure

Israel and Iran exchanged military strikes on June 8 for the first time since a ceasefire took effect two months earlier. This escalation heightened geopolitical risk and added to selling pressure across regional markets. Oil prices rose as investors worried about supply disruptions. The combination of tech weakness and war concerns kept investors on edge throughout the trading session.

Banking Stocks Also Decline

Singapore’s largest banks were not spared from the selloff. DBS fell 1.6% to S$62.76, OCBC dropped 2.3% to S$23.40, and UOB declined 2% to S$37.79. Despite banks being traditional pillars of the STI, broader market anxiety pulled them lower. The index’s trading range on June 8 was 4,952.66 to 4,996.40, showing significant intraday volatility.

What This Means for Investors

Meyka rates the STI a C+ with a 12-month price target of $5,344.14 USD, suggesting limited upside from current levels. The index’s RSI stands at 54.28, indicating neutral momentum. With the index trading near its 50-day moving average of 4,970.15, technical support remains intact. However, continued tech weakness and geopolitical uncertainty could test lower levels near the 200-day average of 4,682.18.

Final Thoughts

Singapore’s STI fell 1.7% on June 8 as global tech fears and Middle East tensions collided. With Meyka rating the index C+ and targeting $5,344.14, the data suggests investors should wait for clearer signals before adding exposure.

FAQs

Why did Singapore stocks fall on June 8?

The STI fell 1.7% due to a global technology selloff triggered by Broadcom’s weak guidance and escalating Israel-Iran military tensions.

Which Singapore stocks fell the most?

Semiconductor and tech stocks led losses, with AEM down 3%, InnoTek over 4%, and UMS down 1.2% on AI spending sustainability concerns.

How did other Asian markets perform?

South Korea’s Kospi fell 8.3%, Japan’s Nikkei dropped 3.9%, and Taiwan’s benchmark declined 3.5% as chip stocks sold off globally.

Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.

About Author

Danny Kontos

Co Founder

Danny Kontos has been a stock investor since 2007 and co-founded Meyka in 2023. He keeps a small, focused portfolio and only moves when the numbers are hard to argue with. He has waited years on a single position before. Before Meyka, he ran a web hosting company and a mortgage lending platform, so he knows what a well-run business actually looks like under the hood. This article did not come from a news cycle. It came from someone who has been watching this space for a long time.