Micron Technology’s strong sales outlook has reignited confidence in the artificial intelligence sector, boosting Asian stock markets and U.S. index futures in tandem, while falling oil prices further improved market sentiment.
Nasdaq 100 futures rose 1.6%, while S&P 500 futures gained 0.5%. South Korea’s KOSPI surged as much as 6%, and the MSCI Asia-Pacific index climbed 1.3%. Shares of Micron Technology, the largest U.S. computer memory chip maker, jumped about 15% after market close, driven by quarterly sales that far exceeded Wall Street expectations, signaling strong momentum in AI-driven growth.
Brent crude erased all wartime gains, falling below $73 a barrel after dropping 4.3% in the previous trading session. Prices declined further amid increased oil flow through the Strait of Hormuz following progress in the U.S.-Iran peace talks. Meanwhile, strong earnings from Micron Technology eased market pressure, after technology stocks led global benchmark indices lower to their lowest level in two weeks.
Market focus has shifted to the Federal Reserve’s preferred inflation gauge, with expectations of a hawkish policy from the Fed pushing the dollar index higher to a seven-month high on Wednesday after three consecutive days of gains. This put pressure on Asian currencies, offsetting some of the benefits from falling oil prices. U.S. Treasury bonds held steady following their rise on Wednesday.
Micron’s overnight earnings report reminded investors that the memory cycle and the broader artificial intelligence trade will persist. Although market sentiment may fluctuate sharply due to volatile stock prices, structural supply constraints in both DRAM and NAND chips are expected to support these stocks against further weakness at least through 2027.
Micron Technology’s revenue rose 74% quarter-on-quarter in the third fiscal quarter ending May, suggesting that SK Hynix and Samsung Electronics may also see a similar surge in revenue during the April-to-June quarter due to rising prices of DRAM and NAND chips.
Micron Technology said in a statement that revenue for the fourth fiscal quarter ending in August is expected to be around $50 billion, above analysts’ previous average forecast of $43.2 billion. Excluding certain items, earnings per share are projected to be approximately $31, up from the previously expected $25.31.
Technical Analysis:
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Gold: The U.S. May PCE data will be released tonight. If it largely meets expectations, it could alleviate market concerns over excessive inflation. For today, we will keep buying opportunities on breakouts with pullbacks, as well as chances to catch rebounds by scanning liquidity in the yellow zone. For detailed positions, please consult the plugin.
(Gold 15-minute chart)
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Nasdaq: The rebound following the yellow low liquidity sweep we flagged yesterday occurred as expected, delivering a risk-reward ratio of nearly 5:1. Today, we remain cautious on the PCE data, keeping in mind the possibility of significant volatility. Consider buying after the yellow zone’s liquidity sweep; additionally, if the blue zone is broken and there’s a pullback, another entry opportunity may arise. For precise levels, please consult the plugin.
(NASDAQ 15-minute chart)
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Crude oil: After yesterday’s price swept through the near-term high liquidity zone, it began to decline. Today we will continue monitoring this trend pattern, with key liquidity areas around 71. For detailed positions, please consult the plugin.
(Crude Oil 15-minute Chart)
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Today’s key financial data and events to watch:
18:00 UK CBI Retail Sales Expectations Index for June
20:30 U.S. May Personal Consumption Expenditures Price Index
