Wall Street Rises After Micron Earnings and In-Line Inflation Data
U.S. stocks moved higher on Thursday, supported by a stronger-than-expected earnings report from Micron Technology. Investors also digested the release of May inflation data, which is closely watched by the Federal Reserve in assessing its future interest rate policy.
The S&P 500 rose 0.8%, while the Nasdaq Composite gained 1%. The Dow Jones Industrial Average also moved higher, adding 316 points, or around 0.6%. The gains showed that investor appetite for risk assets improved, especially after technology and semiconductor stocks received a strong boost from corporate earnings.
Micron became one of the main drivers of the market rally after its shares surged 18%. The jump came after the chipmaker reported fiscal third-quarter results that beat analysts’ expectations. Positive sentiment also spread to other semiconductor stocks, including Qualcomm, which climbed 9% after raising its non-handset revenue guidance for fiscal 2029.
Other chip-related names such as Sandisk, Western Digital, Lam Research, KLA, and Applied Materials also advanced. The rally reflected renewed optimism toward the semiconductor sector, particularly as demand for artificial intelligence chips and data center infrastructure remains a major growth driver for technology companies.
Outside the equity market, the U.S. dollar index was little changed after strengthening on Wednesday. The dollar had previously gained support from rising market expectations that the Federal Reserve may still raise interest rates. However, the PCE inflation report coming in largely in line with expectations helped calm investors because the figures were not hotter than anticipated.
The Personal Consumption Expenditures, or PCE, price index for May rose 0.4% on a monthly basis, slightly below economists’ expectations of a 0.5% increase. On an annual basis, headline PCE rose 4.1%, in line with forecasts. Meanwhile, core PCE, which excludes volatile food and energy prices, increased 0.3% month over month and 3.4% year over year, also matching market expectations.
Although core inflation reached its highest level since October 2023, investors were relieved that the data did not come in above expectations, especially after energy prices had risen due to the Middle East conflict. U.S. Treasury yields edged lower, with the benchmark 10-year yield falling by more than 2 basis points to around 4.374%. The decline in yields also helped support positive sentiment across the stock market.
Source: Newsmaker.id
