Nasdaq Futures Gain After Brutal Tech Selloff, Micron Earnings in Focus

September Nasdaq 100 E-Mini futures (NQU26) are up +0.40% this morning as investors bought the dip in technology stocks after a brutal selloff in the previous session.

Nasdaq 100 futures were supported by a rebound in chip and AI infrastructure stocks. Arm Holdings (ARM) advanced over +4%, Micron Technology (MU) rose more than +3%, and Intel (INTC) gained over +2%. Still, investor dip buying was less aggressive than after previous selloffs amid some caution ahead of quarterly results from memory chipmaker Micron Technology, which will provide a fresh read on the outlook for AI spending.

Meanwhile, the price of WTI crude fell over -1% on Wednesday, extending recent declines as more tankers openly transited the Strait of Hormuz. Vessels are passing through the waterway with their satellite signals turned on, reflecting growing confidence among shipowners. The 10-year T-note yield slipped two basis points to 4.49% as inflation concerns eased.

In yesterday’s trading session, Wall Street’s major indexes ended in the red. Chip and AI infrastructure stocks sank, with Sandisk (SNDK) tumbling over -13% to lead losers in the S&P 500 and Nasdaq 100, and Micron Technology (MU) plunging more than -13%. Also, Tesla (TSLA) slumped over -5% after U.S. regulators launched an investigation into a fatal crash involving one of the EV maker’s vehicles. In addition, Primoris Services (PRIM) cratered more than -21% after the construction company cut its full-year guidance. On the bullish side, International Business Machines (IBM) rose over +5% and was the top percentage gainer on the Dow after JPMorgan upgraded the stock to Overweight from Neutral with a price target of $291.

“The broader market remains supported by solid fundamentals. However, we believe diversification remains key to managing risk, particularly after the strong gains in technology and other growth-oriented segments of the market,” said Brock Weimer at Edward Jones.

Economic data released on Tuesday showed that U.S. business activity continued to expand in June. The U.S. S&P Global manufacturing PMI unexpectedly rose to 55.7 in June, stronger than expectations of 54.6, and the S&P Global services PMI rose to 51.3, stronger than expectations of 51.1. At the same time, the U.S. Richmond Fed manufacturing index fell to 4 in June, weaker than expectations of 8.

Today, all eyes are on quarterly results from memory chipmaker Micron Technology, set to be released after the market close. MU stock has been this year’s top performer in the Philadelphia Semiconductor Index, surging more than 268% as the data-center construction boom fuels demand for memory chips. Micron’s fiscal third-quarter results are expected to offer the clearest indication yet of whether demand for AI infrastructure remains strong enough to sustain this year’s run. 

“It is really Micron earnings that will decide market direction in the short term. We need to see strong earnings and guidance from Micron for the tech rally to resume,” said Marija Veitmane at State Street Global Markets.

On the economic data front, investors will focus on U.S. New Home Sales data, set to be released in a couple of hours. Economists expect May’s new home sales to be 638K, compared to the April figure of 622K.

The EIA’s weekly crude oil inventories report will also be released today. Economists expect this figure to be -3.9 million barrels, compared to last week’s value of -8.3 million barrels.

U.S. rate futures have priced in a 63.7% probability of no rate change and a 36.3% chance of a 25 basis point rate hike at the conclusion of the Fed’s July meeting.

In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.49%, down -0.38%.

The Euro Stoxx 50 Index is down -0.16% this morning as investors remained cautious following a tech-led selloff in the previous session. Defense stocks sank on Wednesday, weighed down by a more than -16% plunge in Rheinmetall AG (RHM.D.DX) after reports indicated that Germany was scrapping plans to build a new warship model. Limiting losses, real estate stocks climbed, with Segro Plc (SGRO.LN) surging over +16% after Prologis made its $16.6 billion takeover bid public following the U.K. warehouse landlord’s rejection of the offer. Technology stocks also edged higher, rebounding slightly from yesterday’s selloff, though caution prevails ahead of Micron’s quarterly results due later in the day. Also supporting sentiment, oil prices fell on signs that shipping activity through the Strait of Hormuz is gradually recovering. Meanwhile, a survey released on Wednesday showed that German business sentiment improved slightly in June, with companies becoming somewhat more optimistic about a near-term end to the Middle East conflict. “Firms perceive the business environment as less uncertain. German companies are hoping for geopolitical tensions to ease,” Ifo President Clemens Fuest said.

Germany’s Ifo Business Climate Index was released today.

The German June Ifo Business Climate Index stood at 85.6, in line with expectations.

Asian stock markets today closed mixed. China’s Shanghai Composite Index (SHCOMP) closed up +0.11%, and Japan’s Nikkei 225 Stock Index (NIK) closed down -0.88%.

China’s Shanghai Composite Index closed slightly higher today as investors snapped up tech stocks that were caught up in the previous day’s global rout. Semiconductor stocks rallied on Wednesday. Huaan Securities analysts said, “We see recent market volatility as a cooling-down rather than a turning point,” adding that the correction offers “a good opportunity for investors to add AI ​​industry chain positions.” However, the benchmark index’s gains were limited as real estate and software stocks slumped. Meanwhile, China’s Premier Li Qiang on Wednesday defended the country’s rise in frontier technologies ranging from AI to electric vehicles, dismissing accusations that it was driven by state subsidies. Li added that China will continue to speed up the large-scale adoption of new technologies. In other news, Bloomberg reported that ByteDance, the developer of TikTok, was in early discussions with banks regarding a borrowing of about $20 billion in what would be the company’s largest offshore loan to date. In corporate news, Abbisko Cayman rose over +4% in Hong Kong after signing a strategic research collaboration and license agreement with Eli Lilly, which could generate up to $1.9 billion in payments if certain milestones are met. Investor attention this week is on China’s industrial profit data for May.

Japan’s Nikkei 225 Stock Index closed lower today, extending the previous session’s losses as concerns about potential Fed rate hikes and technology-sector valuations continued to weigh on sentiment. Chip-related stocks fell on Wednesday, tracking overnight losses in their U.S. peers as investors revisited their holdings following a recent red-hot rally. Weakness in insurance stocks also weighed on the benchmark index. Data released on Wednesday showed that a key measure of Japan’s service-sector inflation rose 3.3% in May from a year earlier, signaling broadening price pressures that are likely to keep expectations of further Bank of Japan rate hikes alive. Meanwhile, the summary of opinions from the Bank of Japan’s last meeting released on Wednesday showed that policymakers discussed mounting inflation risks, with some advocating faster interest-rate hikes to bring borrowing costs closer to levels considered neutral for the economy. “To avoid rapid and significant policy interest rate hikes, the bank should bring the policy rate closer to the neutral rate sooner,” one member was quoted as saying, adding that the BOJ should consider further action every few months. Elsewhere, BofA Global Research strategists raised their year-end target for the Nikkei to 76,000 from 67,000. “Main drivers are stronger-than-expected expansion in AI demand and a higher probability of the Strait of Hormuz remaining open,” the strategists said. Investor focus for the remainder of the week is on Japan’s Tokyo Core CPI for June, which is expected to reflect the impact of rising energy prices, although the underlying inflation trend may be clouded by the effects of subsidies. Market participants will also closely monitor a speech from BOJ board member Naoki Tamura. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed up +26.64% to 39.69.

The Japanese May Corporate Services Price Index rose +3.3% y/y, in line with expectations.

Pre-Market U.S. Stock Movers

Chip and AI infrastructure stocks staged a modest rebound in pre-market trading, with Micron Technology (MU) rising over +3% and Sandisk (SNDK) gaining more than +2%.

Arm Holdings (ARM) advanced over +4% and Intel (INTC) rose more than +2% in pre-market trading, getting an extra boost after SoftBank Group founder Masayoshi Son highlighted both companies’ growth potential during a call with investors.

Alphabet (GOOGL) gained about +0.5% in pre-market trading after S&P Dow Jones Indices announced that the company would replace Verizon Communications in the Dow Jones Industrial Average on June 29th.

Cerebras Systems (CBRS) plunged more than -10% in pre-market trading as the chipmaker’s full-year revenue guidance failed to impress investors.

FedEx (FDX) slid over -6% in pre-market trading after the courier reported a lower operating margin for its core delivery segment in FQ4 and issued below-consensus FY26 adjusted EPS guidance.

You can see more pre-market stock movers here

Today’s U.S. Earnings Spotlight: Wednesday - June 24th

Micron Technology (MU), Paychex (PAYX), Jefferies Financial Group (JEF), H.B. Fuller Company (FUL), NovaGold Resources (NG), Worthington Steel (WS), MillerKnoll (MLKN), Daktronics (DAKT), Methode Electronics (MEI).