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June 25, 2026 - 00:04
6 minutes
(Bloomberg) — US share futures gained after Micron Technology Inc.’s upbeat outlook reignited confidence in the artificial-intelligence trade, helping fuel a late rally on Wall Street.Contracts for the Nasdaq 100 soared over 2% and those for the S&P 500 rose 0.7% in early Asian trading, while an exchange-traded fund tracking the Nasdaq 100 gained 1.5% after the close of regular trading. Micron, the largest US maker of computer memory chips, surged 13% after forecasting sales that topped analysts’ estimates. Equity-index futures for Japan, Australia and South Korea also climbed.Oil prices extended their retreat after surrendering gains tied to the Middle East conflict, bolstering a rally in Treasuries. West Texas Intermediate crude edged lower early Thursday as the US and Iran reported progress in peace talks and more tankers openly transited the Strait of Hormuz, easing concerns about supply disruptions. Brent settled below $74 a barrel, its lowest close since the conflict began.Investors breathed a sigh of relief after growing uneasy about the sustainability of the AI rally. A torrent of spending by technology giants racing to expand data-center capacity has made chipmakers and related hardware suppliers some of the market’s best performers this year. So far, there are few signs that investment is slowing.Micron’s results arrived at a pivotal moment for the AI trade, with chipmakers and other technology stocks under pressure amid concerns that spending on artificial intelligence infrastructure was slowing. The company’s stronger-than-expected outlook offered fresh evidence that demand remains robust.Along with Samsung Electronics Co. and SK Hynix Inc., Micron has been a major beneficiary of the data-center spending boom. Demand for conventional memory chips and high-bandwidth memory, a key component in AI systems, continues to outstrip supply.The companies have struggled to satisfy memory-chip demand, creating shortages in areas like computers, phones and cars. Though Micron is expanding its manufacturing capacity, prices are expected to remain high for the foreseeable future.Further reinforcing optimism around the sector, SK Hynix announced plans for a US stock listing. The company is seeking about $29 billion in the offering as it looks to capitalize on surging demand for advanced memory products.“When stocks rise too much and too fast, a pullback almost always ensues,” said Rick Gardner at RGA Investments. “We would much rather be buying tech stocks on days when they are down, and the pullback can present an opportunity for investors who do not have adequate exposure to this space, which is still fundamentally strong.”Meanwhile, lower oil prices helped calm inflation concerns ahead of the Federal Reserve’s preferred inflation report, sparking a rally in Treasuries. The 10-year yield fell 11 basis points, while the 30-year touched 4.85%, the lowest since April 8. The two-year yield, which is more closely tied to Fed policy expectations, slipped to about 4.15%.The rally signaled another reassessment of the Fed’s likely interest-rate path, a week after traders piled into bets it could hike as soon as next month following Chairman Kevin Warsh’s first meeting leading the bank. But those expectations could fade if the oil-price drop eases inflation pressures or the job market weakens.Still, the latest update to the key US inflation gauge is unlikely to challenge a growing consensus at the central bank around the need for hikes. Forecasters expect Thursday’s personal consumption expenditures price index to show acceleration on both a monthly and year-over-year basis in May.“Inflation is going to come down significantly,” said Raghav Datla, an interest-rate strategist at Citigroup Inc. Even if the Fed stands pat well into 2027, “the current level of rates seems too high.”Corporate Highlights:Two leading artificial intelligence researchers at Alphabet Inc.’s Google are planning to leave for rival Anthropic PBC, according to people familiar with the matter, adding to a series of high-profile departures that risk undercutting the search giant’s position in AI. Anthropic PBC accused Chinese technology giant Alibaba Group Holding Ltd. of waging a large-scale effort to “illicitly” access its Claude artificial intelligence model using thousands of fraudulent accounts that undermine the US AI developer’s decision to keep its products out of China. OpenAI unveiled its first custom AI chip developed in partnership with Broadcom Inc., part of a bid by the ChatGPT maker to gain an edge by tailoring hardware to better run its products. Some of the main moves in markets:StocksS&P 500 futures rose 0.7% as of 7:02 a.m. Tokyo time Hang Seng futures fell 0.3% S&P/ASX 200 futures rose 0.2% CurrenciesThe Bloomberg Dollar Spot Index rose 0.2% The euro was unchanged at $1.1358 The Japanese yen was little changed at 161.77 per dollar The offshore yuan was little changed at 6.8125 per dollar The Australian dollar was little changed at $0.6900 CryptocurrenciesBitcoin rose 0.4% to $61,104.54 Ether rose 0.8% to $1,624.37 BondsThe yield on 10-year Treasuries declined 10 basis points to 4.39% Japan’s 10-year yield was unchanged at 2.660% Australia’s 10-year yield declined one basis point to 4.76% CommoditiesWest Texas Intermediate crude fell 0.8% to $69.81 a barrel Spot gold rose 0.2% to $4,007.80 an ounce This story was produced with the assistance of Bloomberg Automation.©2026 Bloomberg L.P.
