Stocks worldwide experienced a rally on June 25, 2026, driven by Micron Technology Inc.'s optimistic forecast, which reaffirmed the strong bull case for the artificial intelligence (AI) trade. This positive sentiment was further bolstered by oil prices returning to their pre-war levels.
In premarket trading, Nasdaq 100 futures advanced by 2.1%, and S&P 500 futures rose by 0.7%. Micron's stock saw a significant jump of 18% in premarket trading following its strong earnings report. Brent crude, on the other hand, dropped by as much as 2.3%, falling below $73 a barrel, as flows through the Strait of Hormuz ramped up. Treasuries slipped, although the dollar remained steady as investors awaited the latest personal consumption expenditures report.
Micron reported earnings per share of $25.11, significantly exceeding market expectations of around $20. Its shares were up more than 10% in after-hours trading. The company's strong results underscored how AI is driving rapid profit growth, leading to a surge in semiconductor stocks. The VanEck Semiconductor ETF rose 5% in US premarket trading, with Western Digital Corp. jumping 12%, Sandisk Corp. climbing 12%, and Seagate Technology Holdings PLC adding 8.3%. This surge followed a period where tech and chip stocks had experienced some weakness, with the S&P 500 Index ending 0.1% lower and the Nasdaq 100 closing down 0.4% on the previous day.
The decline in oil prices was attributed to increased flows through the Strait of Hormuz and a lack of significant escalations in geopolitical tensions, with West Texas Intermediate futures falling below $70 a barrel. This drop in oil prices helped ease inflation concerns and contributed to a steadying of Treasury yields, with the 10-year Treasury yield falling 10 basis points to 4.40%. Despite this, the dollar index reached its strongest level in 13 months, touching 101.80, as haven demand remained a theme amid some lingering tech stock volatility and private-credit concerns. Fears over weakening software companies tied to the AI boom and a liquidity crunch in private credit, highlighted by Morgan Stanley's withdrawal limits on a flagship private-credit fund, had previously weighed on technology shares, including Microsoft, Oracle, and Meta Platforms, which saw losses.
