GLOBAL MARKETS-Tech stocks boosted by Micron but Treasury rout hangs over markets
Micron said quarterly revenue would top forecasts and customers raised commitments to $32 billion, helping chip stocks even as Treasury yields climbed.
- On Thursday, Dow futures slipped to a more than three-month low as surging Treasury yields pressured blue-chip components, though blockbuster earnings from AI chipmaker Micron Technology lifted broader technology stocks.
- Rising concerns over inflation and government debt drove Treasury yields to multi-decade highs, leaving investors bracing for a period where interest rates remain elevated for longer.
- Micron reported sales nearly quadrupled year over year and secured $32 billion in long-term supply agreements, signaling robust demand for AI memory chips.
- Following Wednesday's softer-than-expected inflation data, traders reduced expectations for a Federal Reserve rate hike, with CME's FedWatch Tool showing a 38% chance this month versus 50% a day earlier.
- A December rate hike remains a possibility for the Federal Reserve, as inflation continues above the 2% central bank target despite recent tempering of immediate hike bets.
20 Articles
20 Articles
Dow futures hit three-month low as yields surge, Micron earnings offer support
Oct 1 (Reuters) - Dow futures slipped to a more than three-month low on Thursday as concerns over inflation and rising government debt drove Treasury yields to multi-decade highs, while blowout results from Micron lifted the chip stocks. Stock moves ov...
Asian stock exchanges rising in the wake of Micron's best expectations, which push the technology securities sector, while the decline in oil temporarily stops sales on bonds and government bonds. (ANSA)
The Economic Times
Times of IndiaGlobal Market: Japan’s Nikkei hits six-week high as chip stocks rally on AI optimism
Japan's Nikkei share average soared to a six-week peak, buoyed by chip sector stocks after favorable earnings guidance from Micron Technology. The Nikkei 225 surged 2.28%, while the broader Topix remained relatively stable. Nevertheless, various stocks within the Nikkei faced downturns, particularly in finance. Analysts are wary about the durability of AI stock gains amid Micron's forecasts, with monetary policy talks suggesting possible interes…
The US 10-year yield is 5.3 percent and marks the highest level in 24 years. However, the Nikkei gains more than two percent – driven by Micron's quarterly figures.
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