Dow Futures Rise 200 Points as Micron’s Earnings Fuel Semiconductor Stocks

Dow Futures Rise as Wall Street Looks to Recover

Futures tied to major U.S. indices surged Thursday morning as Wall Street seeks stability following a volatile mid-week session. Dow Jones Industrial Average futures rose 200 points (0.5%), while S&P 500 and Nasdaq 100 futures gained 0.8% and 1.3%, respectively. Semiconductor stocks led the gains, with Micron Technology rallying after an upbeat earnings report.

Micron Fuels Semiconductor Rally

Micron Technology’s shares soared by 14% in extended trading after the company delivered strong quarterly earnings and forward guidance. The semiconductor giant reported fiscal fourth-quarter results that surpassed analyst estimates and projected revenue for the current quarter of $8.7 billion, ahead of the $8.28 billion forecasted. This sparked a sector-wide boost, with Applied Materials and Lam Research each gaining around 4%.

Micron’s success highlighted the sustained demand for memory chips, particularly for data centers and AI-related applications. The company emphasized that its high-bandwidth memory (HBM) chips, crucial for artificial intelligence, are sold out through 2025. This reflects the ongoing strength in AI demand, an essential market for Nvidia and other tech companies.

Global Semiconductor Stocks Soar

Micron’s optimistic outlook had a ripple effect across global semiconductor stocks. South Korean firms Samsung Electronics and SK Hynix rallied 4% and 9%, respectively, while Japan’s Tokyo Electron surged 8%. SK Hynix announced it has begun mass production of its new HBM chips, with deliveries expected by year-end. As a supplier to Nvidia, this positions SK Hynix as a key player in the AI-driven chip market.

European semiconductor stocks also benefited, with ASML gaining over 4% in early trading. Other notable performers included ASMI, Be Semiconductor, and STMicro, all buoyed by positive sentiment in the chip sector.

Chinese Stocks Climb on Stimulus Optimism

Chinese stock ETFs experienced a notable rally after government officials reaffirmed plans to stimulate the country’s slowing economy. The iShares China Large-Cap ETF (FXI) and iShares MSCI China ETF (MCHI) both jumped over 6% in premarket trading. Traders at JPMorgan expect this rally to continue, citing the likelihood of additional policy easing in the coming weeks.

Market Outlook: Bullish Near-Term Prospects

The surge in semiconductor stocks, along with optimism surrounding China’s stimulus measures, suggests that market sentiment is shifting toward a bullish stance in the near term. However, upcoming economic data, including jobless claims and GDP revisions, could temper gains. Traders should watch for potential volatility ahead of the U.S. election, but the momentum in key sectors like semiconductors and AI could continue to drive market strength.