Nasdaq Futures Climb as Micron’s Upbeat Forecast Boosts Chipmakers

December Nasdaq 100 E-Mini futures (NQZ26) are up +0.51% this morning as strong quarterly results and guidance from Micron Technology boosted chipmakers and other AI-related stocks.

Memory-chip maker Micron Technology (MU) reported stronger-than-expected FQ4 results and issued upbeat FQ1 guidance after the closing bell on Wednesday. Micron’s earnings revived investor confidence that demand for the AI buildout remains robust and durable, sending chip and AI infrastructure stocks higher in pre-market trading. Sandisk (SNDK), Intel (INTC), and Marvell Technology (MRVL) all gained over +1%, though Micron shares edged down -0.2%.

However, gains in Nasdaq 100 futures were limited as rising oil prices fueled inflation concerns and pushed bond yields higher. The price of WTI crude rose about +2% on Thursday as traders weighed a recovery in Middle Eastern flows against the risk of further escalation in the U.S.-Iran conflict. The 10-year T-note yield advanced three basis points to 5.32%.

Investors are now awaiting a new round of U.S. economic data and comments from Federal Reserve officials.

In yesterday’s trading session, Wall Street’s three main equity benchmarks ended mixed as Treasury yields continued to rise. Jabil (JBL) plunged over -10% and was the top percentage loser in the S&P 500 as the contract manufacturer’s strong FQ4 results and FY27 guidance failed to impress investors. Also, Moderna (MRNA) slid more than -5% after Citi downgraded the stock to Sell from Neutral with a price target of $80. In addition, Northrop Grumman (NOC) fell over -4% after Boeing beat out the company for a multibillion-dollar contract to build the Navy’s next-generation fighter jet. On the bullish side, cybersecurity stocks advanced, with Gen Digital (GEN) climbing over +5% to lead gainers in the S&P 500 and Palo Alto Networks (PANW) rising more than +2%.

Economic data released on Wednesday were positive for equities. The U.S. core PCE price index, a key inflation gauge monitored by the Fed, rose +0.2% m/m and +3.0% y/y in August, weaker than expectations of +0.3% m/m and +3.3% y/y. Also, U.S. Q2 GDP growth was revised upward to +2.2% (q/q annualized), stronger than expectations of no change at +1.5%. In addition, U.S. private-sector payrolls rose by 90K in September, stronger than expectations of 73K. Finally, U.S. August personal spending rose +0.9% m/m, stronger than expectations of +0.8% m/m, while personal income grew +0.2% m/m, weaker than expectations of +0.5% m/m.

“The combination of reports has strengthened investor confidence that the U.S. central bank may become less hawkish, and it has lifted optimism about the cycle’s ability to manage much loftier interest rates by remaining resilient and avoiding a slowdown,” said Jose Torres at Interactive Brokers.

Fed Governor Lisa Cook said on Wednesday that inflation has remained too high for too long and that she is committed to bringing it down without damaging the labor market.

U.S. rate futures are currently pricing in a 62.9% probability of no rate change and a 37.1% probability of a 25-basis-point rate hike at the Fed’s monetary policy committee meeting later this month.

Today, investors will focus on U.S. initial jobless claims data, set to be released in a couple of hours. Economists expect applications for U.S. unemployment benefits to come in at 201K in the week ended September 26th, compared with 197K in the prior week.

The U.S. ISM Manufacturing PMI and S&P Global Manufacturing PMI will also be closely monitored today. Economists expect the September ISM manufacturing index to inch up to 54.8 from 54.6 in August, while the final S&P Global manufacturing PMI is projected to be revised downward to 56.9 from the preliminary reading of 57.0.

U.S. construction spending data will be released today as well. Economists project August construction spending to be unchanged m/m after falling -0.5% m/m in July.

In addition, market participants will parse comments today from Fed Vice Chair Philip Jefferson, Fed Vice Chair for Supervision Michelle Bowman, Fed Governors Christopher Waller and Lisa Cook, Richmond Fed President Tom Barkin, Boston Fed President Susan Collins, Kansas City Fed President Jeff Schmid, New York Fed President John Williams, and Dallas Fed President Lorie Logan.

On the earnings front, technology consulting firm Accenture (ACN), sportswear giant Nike (NKE), and spice and seasoning maker McCormick (MKC) are slated to release their quarterly results today.

In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 5.32%, up +0.53%.

The Euro Stoxx 50 Index is down -1.09% this morning, kicking off the fourth quarter on a downbeat note as rising global bond yields and oil prices weighed on sentiment. Banking and other rate-sensitive stocks tumbled on Thursday. Data released on Thursday showed that Switzerland’s annual inflation rate accelerated to its highest level in more than two years in September, as imported energy prices rose amid escalating tensions in the Middle East. Separately, a survey showed that factory activity in the Eurozone continued to strengthen in September, expanding at its fastest pace in more than four years. Meanwhile, Eurozone government bond yields rose on Thursday, with France’s 10-year yield surging to its highest level since 2002 ahead of the government’s 2027 budget announcement. The French government is set to unveil plans to significantly reduce its budget deficit and will also sell a series of longer-dated bonds at auction later today. In corporate news, Pandora A/S (PNDOR.C.DX) slid over -4% after CEO Berta de Pablos-Barbier said U.S. demand appeared to be stabilizing at a low level.

Switzerland’s CPI, Eurozone’s Manufacturing PMI, and Eurozone’s Unemployment Rate were released today.

Switzerland’s September CPI was unchanged m/m and rose +1.0% y/y, in line with expectations.

Eurozone’s September Manufacturing PMI was revised higher to 52.9 from the preliminary reading of 52.7.

Eurozone’s August Unemployment Rate was 6.4%, in line with expectations.

Japan’s Nikkei 225 Stock Index (NIK) closed up +3.30%, while China’s financial markets were closed for a holiday.

Japan’s Nikkei 225 Stock Index closed sharply higher today, hitting a 6-week high as chipmakers rallied. Chip-related stocks jumped on Thursday as Micron Technology’s upbeat revenue forecast for the current quarter boosted sentiment across the sector. Chip-testing equipment maker Advantest surged over +9%, and electronic components maker Murata Manufacturing climbed more than +8%, providing a significant lift to the Nikkei. The Bank of Japan’s Tankan survey released on Thursday showed that sentiment among Japanese manufacturers reached an eight-year high in the third quarter, while confidence among non-manufacturers weakened, though it remained near its highest level in more than three decades. Overall, the Tankan signaled continued resilience among Japanese businesses, reinforcing expectations that the BOJ will raise interest rates again by year-end. Meanwhile, a summary of opinions from the BOJ’s September meeting showed on Thursday that policymakers became increasingly concerned about the risk of inflation overshooting its target, with some members advocating faster interest-rate hikes if needed. Still, the yen weakened against the dollar after the summary and the Tankan were released, suggesting that neither offered a clear signal that the central bank would deliver a back-to-back rate hike this month. The reduced likelihood of a near-term hike also sent rate-sensitive bank and insurance stocks sharply lower. Elsewhere, foreign investors sold a net 362 billion yen worth of Japanese stocks in the week through September 26th, marking a third straight week of net selling, according to Ministry of Finance data. In corporate news, Nidec Corp. tumbled over -10% after the motor maker’s auditor declined to issue an opinion on its long-awaited financial statements. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed up +4.99% at 22.92.

The Japanese Tankan Large Manufacturers Index stood at 24 in the third quarter, weaker than expectations of 25.

The Japanese Tankan Large Non-Manufacturers Index came in at 35 in the third quarter, weaker than expectations of 36.

The Japanese September S&P Global Manufacturing PMI remained unrevised at 54.1, in line with expectations.

China’s Shanghai Composite Index was closed today for the week-long National Day holiday. Mainland China’s financial markets will reopen on Thursday, October 8th.

Pre-Market U.S. Stock Movers

Chip and AI infrastructure stocks advanced in pre-market trading as Micron’s strong FQ4 results and FQ1 guidance revived investor confidence that demand for the AI buildout remains robust and durable. Sandisk (SNDK), Intel (INTC), and Marvell Technology (MRVL) all gained over +1%, though Micron shares edged down -0.2%.

You can see more pre-market stock movers here

Today’s U.S. Earnings Spotlight: Thursday - October 1st

Accenture (ACN), Nike (NKE), McCormick & Company (MKC), Acuity (AYI).

On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.