Stocks worldwide saw a rally following Micron Technology Inc.'s optimistic forecast, which reinforced confidence in the artificial intelligence sector. This positive sentiment was further bolstered by oil prices declining to levels seen before the recent conflict.
Nasdaq 100 futures surged by 2.1%, and S&P 500 futures increased by 0.7%. Micron's shares experienced an 18% jump in premarket trading. Brent crude dropped as much as 2.3%, settling below $73 a barrel, attributed to increased flows through the Strait of Hormuz. Meanwhile, Treasuries saw a slight decline, and the dollar remained stable ahead of the release of the latest personal consumption expenditures report.
Micron's earnings report was widely anticipated as a crucial test of the sustainability of the AI rally. The memory-chip maker's stock had already climbed approximately 260% this year due to high demand from data-center developers. Although concerns about the longevity of this growth exist, Micron's performance, alongside other memory and storage companies like Sandisk Corp., Western Digital Corp., and Seagate Technology Holdings Plc., has been a significant contributor to the S&P 500's roughly 7% advance.
