Stocks saw a late climb fueled by speculation that Micron Technology Inc.'s robust outlook would reinvigorate confidence in the artificial intelligence (AI) trade, which has been the primary driver of the market rally from its war-driven lows.
Following the close of regular trading, an exchange-traded fund tracking the Nasdaq 100, valued at nearly $500 billion, increased by 1.5%. Micron, which is the largest U.S. manufacturer of computer memory chips, experienced a significant jump of 13% after reporting a sales forecast that exceeded estimates. This surge was attributed to soaring prices for these components, driven by AI-fueled shortages.
This positive movement comes after a period where investor attention was keenly focused on Micron's earnings report, viewed as a critical indicator for the AI sector's health. The rebound in tech stocks on Wednesday, with Arm Holdings advancing over +4%, Micron up over +3%, and Intel gaining over +2%, also contributed to the overall market sentiment, although dip-buying was less aggressive due to caution before Micron's results.
