Market Futures React to AI Chip Earnings
U.S. stock index futures climbed on Wednesday evening, led by technology and semiconductor gains after Micron Technology’s earnings and Qualcomm’s AI outlook. S&P 500 futures were up 0.8% at 7,415 points by 04:30 ET, Nasdaq 100 futures surged 2.2% to 30,174 points, and Dow Jones futures rose 0.08% to 52,317 points.
Focus on PCE Inflation Report
Investors turned to the Personal Consumption Expenditures (PCE) price index scheduled for release at 08:30 ET, the Federal Reserve’s preferred inflation gauge. The report was highlighted as a potential catalyst for Fed rate‑path expectations, with hotter‑than‑expected numbers possibly prompting additional rate hikes and softer numbers supporting expectations of lower borrowing costs.
Oil Prices Retreat to Pre‑War Levels
Brent crude futures fell 1.8% to $72.42 per barrel and U.S. West Texas Intermediate slipped 1.5% to $69.27 per barrel, erasing most of the premium built on Middle‑East supply concerns. The decline followed improved shipping activity through the Strait of Hormuz and progress in diplomatic talks, reducing the geopolitical risk premium.
Micron Technology Posts Blockbuster Quarter
Micron Technology reported fiscal third‑quarter revenue of $41.46 billion, more than four times the amount a year earlier and above analyst forecasts of $35.84 billion. Adjusted earnings per share were $25.11, also beating expectations. Revenue from the data‑center segment jumped over sevenfold to $11.5 billion, driven by strong demand for AI‑related memory chips. Gross margin expanded to 84.9% from 39% a year ago. The results propelled Micron shares up roughly 20% in pre‑market trading and sparked gains across semiconductor stocks worldwide.
Qualcomm Forecasts Strong AI Revenue Growth
Qualcomm announced a target of $15 billion in annual sales from its data‑center business by 2029, reflecting confidence in sustained AI infrastructure spending. The guidance lifted Qualcomm’s share price more than 12% on the news. The company, traditionally known for smartphone chips, is expanding into AI, cloud computing, and data‑center markets to create new revenue streams beyond its core business.