Pre-Market Update: US Stock Futures Rise After Micron Results and PCE Inflation Data

TLDR

• Micron shares surged over 18% premarket after a strong earnings beat and raised outlook
• Nasdaq 100 futures jumped 2.1%, S&P 500 futures rose 0.7% ahead of Thursday’s open
• Qualcomm announced a push into data center chips and servers, targeting $15 billion in new revenue
• Oil prices fell back to pre-Iran war levels, with Brent crude dropping below $73 a barrel
• PCE inflation data matched expectations, sending bond yields lower and keeping futures gains intact

It was a tough few days for Wall Street heading into Thursday, but Micron’s earnings gave investors something to cheer about. The memory chipmaker posted record quarterly results, beating expectations on both earnings and outlook. Its shares jumped more than 18% before the bell.

The results helped ease concerns about AI spending. Some investors had been worried that big bets on artificial intelligence weren’t paying off. Micron’s numbers suggested demand for memory chips used in AI systems remains strong.

Nasdaq 100 futures rose 2.1% following the report. S&P 500 futures climbed 0.7%. Dow futures edged up 0.1%, a smaller move since the index has fewer tech stocks.

Qualcomm also made news. The chipmaker said it plans to expand beyond smartphones into data center products, including chips and servers. The company set a target of $15 billion in new revenue from that push. Its stock rose more than 12% in premarket trading.

Oil Prices and Inflation Data in Focus

Oil prices fell back sharply on Thursday. Brent crude dropped to under $73 a barrel. West Texas Intermediate broke below $70. Both levels reflect a return to prices seen before the Iran war disrupted supply through the Strait of Hormuz.

The drop came as supply returned to the Persian Gulf, easing pressure on energy markets. Lower oil prices can help reduce inflation, which has been a key concern for investors this year.

All eyes were on the Personal Consumption Expenditures index, the Federal Reserve’s preferred inflation measure. Earlier data for May, including consumer and wholesale prices, had come in hotter than expected. That raised fears the Fed could raise interest rates again.

When the PCE report landed, it matched forecasts. Core PCE, which strips out food and energy, rose 0.3% in May. The headline figure rose 0.4%. Both numbers were in line with economist estimates.

Markets held their gains after the report. S&P 500 futures were up 0.8%. Nasdaq 100 futures rose 2.3%. Dow futures were up 0.3%.

Bond yields moved lower. The 2-year Treasury yield fell to 4.12%. The 10-year yield dropped to 4.39%. Falling yields typically signal less concern about inflation or rate hikes.

The combination of strong chip earnings, lower oil prices, and on-target inflation data gave investors reasons to feel more settled after a difficult stretch on Wall Street.

Qualcomm’s data center move and Micron’s outlook both pointed to continued corporate investment in AI infrastructure, even as broader market concerns linger around valuations.

The PCE data was the final major economic release of the week for US markets.

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