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Asian equity markets mostly rose on Thursday after Micron's blockbuster earnings eased AI fears. Micron forecast profit and revenue well above expectations, with customers committing $22 billion for memory chip supplies. South Korea's Kospi jumped 5.5%, led by SK Hynix and Samsung Electronics, while Japan's Nikkei surged 4.1%.
U.S. stock futures rose sharply on Thursday, with Nasdaq 100 contracts up 2.1% and S&P 500 contracts up 0.7%, following Micron Technology's solid forecast that boosted AI chip demand optimism. Micron shares surged 17% in premarket trading. Investors are also awaiting key May inflation data for clues on the interest rate outlook.
Retail investors are pulling back on options and margin trading after months of aggressive risk-taking, according to JPMorgan. The bank warns this caution could spell trouble for the tech sector, though investors continue piling into leveraged ETFs.
SpaceX shares fell below their debut price of $150 per share amid a broader tech sell-off, before recovering to around $158. The dip followed a 16 percent slump on Monday that erased $400bn in market value. Tech stocks tumbled on Tuesday, with the Nasdaq falling about 2%, driven by concerns over AI spending sustainability.
Barclays lifted its S&P 500 year-end target to 7,800 from 7,650 and raised its 2026 EPS estimate to $337, citing AI-driven earnings growth and reflationary pressure. Strategist Venu Krishna noted stocks remain choppy amid geopolitical and rate uncertainty.
South Korea's Kospi index fell 9.99% on Tuesday, triggering a circuit breaker, its biggest decline since March 4. Samsung Electronics closed 12.3% lower and SK Hynix ended 12.5% lower, as foreign investors sold heavily amid a global tech sell-off driven by AI and chipmaker stocks. The selloff was part of a broader downturn in U.S.-listed chip stocks, including Sandisk and Micron Technology.
This commentary argues that the widespread belief in buying the dip on Wall Street is a contrarian warning sign. It contends that this strategy has historically underperformed the market over the long term, and the current near-unanimous confidence among institutional managers suggests the strategy may be losing its edge.
J.P. Morgan strategists raised their year-end S&P 500 target to 7,800, citing underestimated earnings growth expectations. Despite the bullish forecast, they warned that a 'flash crash' remains a risk.
Nasdaq futures fell over 2.5% on Tuesday as concerns over U.S. rate hikes and heavy AI spending weighed on tech stocks. The sell-off spread globally, with Japan's Nikkei closing nearly 4% lower and European markets also declining.
Samsung Electronics plans a 90 trillion won (~$59 billion) share buyback program, according to Yonhap. The report sent shares up more than 8% on Wednesday. Details are expected soon.