Nasdaq tech stocks set for strong rebound after Micron earnings boost

• Micron's fiscal Q3 revenue more than doubled year-over-year, with CEO citing 'strategic value of memory in the AI era' as demand accelerates; the company is the only US manufacturer of high-bandwidth memory chips compatible with Nvidia processors
• Qualcomm boosted sentiment with a nearly $4 billion acquisition of chip startup Modular and upbeat data centre forecast, lifting semiconductor stocks including AMD, Marvell, TSMC and Intel
• Asian markets surged in response with Japan's Nikkei up 4.6% and South Korea's Kospi jumping 5.4%; investors await US PCE inflation data expected to show 3.4% annual inflation amid Fed's hawkish stance

Market Summary: Nasdaq Tech Stocks Rebound on Micron Earnings

Key Market Movements:

US stock futures signaled a strong Thursday rebound, with Nasdaq futures surging 2.2% after the tech-heavy index had fallen 3.7% (over 1,000 points) for the week through Wednesday. S&P 500 futures rose 0.8%, while Dow Jones futures gained 0.3%.

Catalyst - Micron Technology:

Micron's fiscal Q3 results drove the rally, with revenue more than doubling year-over-year. CEO Sanjay Mehrotra attributed performance to "the strategic value of memory in the AI era" amid accelerating demand. Notably, Micron is the only US manufacturer of high-bandwidth memory chips compatible with Nvidia processors, a critical competitive advantage.

Semiconductor Sector Strength:

Qualcomm boosted sentiment by acquiring chip startup Modular for nearly $4 billion and issuing optimistic data center forecasts. This lifted semiconductor stocks including AMD, Marvell Technology, TSMC, and Intel.

Global Market Response:

The optimism spread internationally, with Japan's Nikkei 225 jumping 4.6%, South Korea's Kospi surging 5.4%, and the Euro Stoxx 600 technology index gaining 0.7%.

Key Economic Watch:

Investors await US Personal Consumption Expenditures (PCE) data, with annual inflation expected at 3.4%. This release is crucial for assessing the Federal Reserve's increasingly hawkish stance.

Currency and Commodities:

The dollar approached ¥162 against the Japanese yen, near its strongest level since July 2024, testing policymakers despite previous intervention attempts. WTI crude fell 0.8% to $69.77, reaching its lowest level since early March.

Market Implications:

The tech sector recovery suggests renewed investor confidence in AI-driven semiconductor demand, though upcoming inflation data could impact Federal Reserve policy expectations.