Nasdaq Rebounds 1% as Micron's Earnings Re‌i‌gni‌t‌‌e AI Rally; S&P 500, Do‌‌w Jone‌‌s Ga‌‌in

Mumbai, June 25: U.S. stock markets opened substantially higher on Thursday, with the technology-weighted Nasdaq Composite Index taking the lead after semiconductor company Micron Technology issued impressive earnings results that sparked interest among investors in artificial intelligence investments. Nasdaq soared around 1% in early trading, while the S&P 500 and Dow Jones Industrial Average moved up by 0.8% and 316 points, or 0.6%, respectively, marking a broad-based recovery after three consecutive losses.

The market tur‌‌na‌‌round comes as investors digested the preferred inflation measure of the Federal Reserve Bank, the Personal Consumption Expenditure Price Ind‌‌ex, which showed inflation moderating from previous readings, along with a sharp decline in crude oil prices that eased concerns ab‌‌out persistent price pressures.

Nasdaq Gains 1% as Micron’s $41.46 Billion Revenues Quadruple Thanks to AI Boom

The technology-heavy Nasdaq Composite opened at 25,627.43, rising 0.59% at the opening bell before extending gains to about 1% in the first hour of trading. The index was hit by its third straight session of losses on Wednesday when it closed at 25,476.64, down 0.43%, as concerns about valuations and capital expenditures tied to AI weighed on technology stocks.

The catalyst for Thursday’s resurge‌‌nce came after Wednesday’s closing bell as Micron Technology reported its fiscal third quarter results that shattered Wall Street expectations. The memory chip manufacturer announced revenue of $41.46 billion, which was more than four times higher compared to $9.3 billion during the same quarter last year and which exceeded analysts’ estimates of $35.85 billion. Adjusted earnings came in at $25.11 per share, comfortably beating analysts’ expectations of $20.78 per share.

Also Read: How to Invest in the US Stocks From India?

The exceptional performance of the company has been attributed to an increase in demand for memory chips used in artificial intelligence infrastructure. According to Micron, customers have already committed an amount of approximately $22 billion worth of forward supply agreements. Moreover, the company forecasted a strong performance in the current quarter, projecting revenues of approximately $50 billion, which represents an increase from $11.3 billion last year.

Micron’s stock surged approximately 18% in pre-market trading and continued its ascent after the opening bell, pushing the company’s market capitalisation past $1.2 trillion. The stock has now gained more than 200% year-to-date in 2026, reflecting the extraordinary demand for memory chips powering the AI revolution.

Qualcomm’s $40 Billion Data-Centre Outlook Fuels Semiconductor Rally

The positive sentiment rippled across the entire semiconductor sector, with multiple chip stocks posting substantial gains in sympathy with Micron’s performance. Qualcomm jumped approximately 9% after the company nearly doubled its projection for fiscal 2029 non-handset revenue to $40 billion, up from a prior forecast of $22 billion, driven by growing data-centre opportunities.

Other semiconductor names joined the rally, with SanDisk rising over 12%, Western Digital advancing nearly 12%, and Seagate Technology gaining approximately 9%. Semiconductor equipment makers also participated in the upswing, with Lam Research climbing 6.7%, ASML advancing 5%, and TSMC rising 3%.

The Philadelphia Semiconductor Index is now on track for its best quarterly performance ever, underscoring the strength of the AI-driven demand cycle that has transformed the industry outlook. The sector’s resurgence comes after several volatile sessions that saw the Nasdaq 100 shed over $1 trillion in market capitalisation this week, as investors debated the sustainability of debt-driven capital expenditures by hyperscalers.

Dow Jones Industrial Average Rises 316 Points as Industrials Gain

The Dow Jones Industrial Average opened 0.68% higher at 52,207.15, adding approximately 316 points in early trading. The blue-chip index had closed Wednesday at 51,848.90, up 0.35% or 182 points, outperforming its technology-heavy counterparts amid the recent market rotation.

The index’s gains were broad-based, with industrial and financial stocks contributing to the advance. Caterpillar rose 3.13%, Honeywell International gained 3.02%, and GE Aerospace advanced 2.13%. Financial names also performed well, with JPMorgan Chase rising 1.22% and Goldman Sachs adding 0.13% following dividend increases after passing the Federal Reserve’s stress tests.

The Dow’s more modest gains compared to the Nasdaq reflect its lower concentration of technology stocks, with the index’s technology exposure limited to names such as Apple, Microsoft and IBM. Apple shares fell approximately 4.9% in early trading, while Microsoft declined 2.12%, suggesting continued rotation away from mega-cap technology names into other sectors.

S&P 500 Rises 0.8% as PCE Inflation Data Meets Expectations

The broader S&P 500 opened 0.62% higher at 7,403.65 and extended gains to approximately 0.8% in the first hour of trading. The index had closed on Wednesday at 7,358.22, down 0.10%, extending its losing streak to three sessions amid concerns about inflation and interest rates.

The rally was supported by the release of the Personal Consumption Expenditures Price Index for May, the Federal Reserve’s preferred inflation gauge. The headline index rose 0.4% month-over-month, slightly below the 0.5% increase expected by economists polled by Dow Jones. On a yearly basis, headline PCE rose 4.1%, in line with expectations, up from 3.8% in the previous reading.

Core PCE, which excludes volatile food and energy prices, rose 0.3% month-over-month and 3.4% year-over-year, both matching economist forecasts. While core inflation reached its highest level since October 2023, investors were relieved that the numbers did not exceed expectations, particularly following recent energy price increases stemming from Middle East tensions.

Treasury yields edged lower following the inflation data, with the yield on the benchmark 10-year U.S. Treasury note sliding more than 2 basis points to trade at 4.374%. The dollar index remained largely unchanged, having risen on Wednesday amid mounting bets on Federal Reserve rate hikes.

Crude Oil Plunges Below $70 as Middle East Tensions Ease

Energy markets experienced significant downward pressure, with NYMEX crude oil breaking below $70 per barrel for the first time since early March, hitting a low of $69.63, a decline of 4.89%. Brent crude slipped below $73 per barrel, retreating toward pre-war levels.

The sharp decline in oil prices was driven by signs of easing geopolitical tensions in the Middle East, including a preliminary peace accord between the United States and Iran that has allowed more tankers to exit the Strait of Hormuz. President Trump stated that Iran has informed the United States that it will not collect passage fees in the strategic waterway.

However, the narrative around falling oil prices has shifted, with economists debating whether cheaper crude will ease inflationary pressures or signal stronger demand in an already overheated economy. According to a Yahoo Finance report, Apollo Global Management chief economist Torsten Sløk noted that concerns are emerging that lower oil prices could ultimately keep inflation elevated by fuelling demand.

The energy sector was among the worst-performing groups in Wednesday’s trading, falling 1.73%, and continued to face pressure on Thursday as oil prices extended their decline.

Wendy’s Shares Surge 32% This Week as Meme Stock Frenzy Returns

Wendy’s shares continued their dramatic rally, gaining approximately 13% in early trading on Thursday and adding to the more than 25% surge from the previous session. The fast-food chain has now advanced approximately 32% for the week, driven by retail investor enthusiasm reminiscent of the 2021 meme stock phenomenon.

The stock’s meteoric rise underscores the persistent influence of retail trading dynamics on certain small-cap and mid-cap names, even as institutional investors focus on macroeconomic data and corporate earnings.

Trip.com Group Plunges 15% on Disappointing Revenue Forecast.

Trip.com Group, the Chinese travel service provider, saw its U.S.-listed shares tumble approximately 15% in early trading after the company reported first-quarter Non-GAAP EPADS of CNY5.73 (USD$0.84), falling short of the StreetAccount consensus estimate of CNY6.07 (USD$0.89).

The company also issued a disappointing second-quarter revenue forecast of 3-8% growth compared to the prior year’s CNY14.86 billion, implying revenue of CNY15.31-16.05 billion. This guidance fell significantly below the CNY17.19 billion FactSet consensus estimate, raising concerns about the travel sector’s recovery momentum in China.

Darden Restaurants Falls 2% on Weak Fiscal 2027 Guidance

Darden Restaurants, the owner of Olive Garden and Seasons 52, fell approximately 2% in pre-market trading after delivering a weaker-than-expected outlook for fiscal 2027. While the company reported fiscal fourth-quarter earnings that slightly beat expectations and revenue approximately in line with estimates, its forecast of $11.10 to $11.35 earnings per share for fiscal 2027 fell short of the $11.39 consensus estimate from FactSet.

Same-store sales at Olive Garden in the fourth quarter rose just 2.4%, weaker than expected, suggesting softening demand at the company’s flagship brand.

Russell Index Reconstitution to Trigger $150 Billion Trading Volume

A significant market event is unfolding this week as the annual Russell index reconstitution approaches, with trading volumes potentially reaching nearly $150 billion. Approximately 62 companies are expected to enter the Russell 1000 Index, while several large companies will shift between growth and value categories.

Semiconductor names are expected to gain larger index weightings, which could create short-term volatility and trading opportunities. Notably, SpaceX is being added to the Russell 1000 on a “fast-track” basis, reflecting the growing importance of the private space exploration company in the broader market landscape.

The U.S. markets opened higher on Thursday as Micron Technology’s exceptional earnings reignited AI-related buying, while in-line inflation data and falling oil prices provided additional support. The Nasdaq led gains with a 1% advance, while the S&P 500 and Dow Jones Industrial Average rose 0.8% and 0.6%, respectively. Investors continue to monitor the Federal Reserve’s policy trajectory amid core inflation at 3.4%, its highest level since October 2023. The Russell index reconstitution this week could generate substantial trading volumes, while chip stocks remain in focus following Micron’s blockbuster results.

Source

• https://www.nasdaq.com/

• spglobal.com/spdji/en/indices/equity/sp-500/

• https://www.dowjones.com/