Nasdaq 100: Micron Pops on AI Demand as FedEx, Nike Warnings Weigh on Sentiment

Stock Futures Dip as FedEx and Nike Warn; Micron Pops on AI Chip Surge

U.S. stock futures slipped early Friday as cautious guidance from FedEx and Nike weighed on sentiment, offsetting optimism sparked by Micron’s bullish AI-driven earnings. Dow futures dropped 96 points, or 0.2%, while S&P 500 and Nasdaq-100 futures each lost 0.2%. The S&P 500 is still set to break a four-week losing streak, while the Dow is on pace for its best week since January. The Nasdaq remains under pressure, headed for a fifth straight weekly decline.

FedEx Flags Economic Weakness With Profit Cut

FedEx lowered its full-year earnings guidance for a third consecutive quarter, citing ongoing softness in U.S. industrial demand. The company now expects adjusted EPS between $18 and $18.60, below previous forecasts. Fiscal Q3 earnings of $4.51 per share missed estimates, while revenue of $22.2 billion exceeded expectations. CEO Raj Subramaniam highlighted pressure in the freight segment and continued uncertainty in business-to-business volumes. Shares fell over 5% in extended trading, and the company trimmed its capex budget to $4.9 billion, down from $5.2 billion.

Nike Outlook Disappoints Despite EPS Beat

Nike shares dropped more than 5% after warning that fiscal Q4 sales will fall in the mid-teens percentage range, worse than expected. While Q3 EPS of $0.54 beat estimates handily, revenue declined 9% year over year to $11.27 billion. The company is aggressively clearing old inventory to prioritize innovation and athlete-focused gear, but weakness in China and elevated discounting pressured margins. Executives cited tariffs, currency headwinds, and fragile consumer sentiment as near-term obstacles to a smoother turnaround.

Micron Shines on AI Memory Boom

Micron emerged as a bright spot, reporting better-than-expected Q2 revenue and earnings as demand for its high-bandwidth memory chips surged. Revenue reached $8.05 billion, up 38% year over year, while adjusted EPS hit $1.56. Sales of HBM chips topped $1 billion for the quarter, and the company is sold out through 2025. Micron also guided Q3 revenue above consensus at $8.8 billion. Shares climbed 6% in after-hours trading and are now up 22% on the year, outperforming the broader chip sector.

Market Outlook: Options Expiry Could Stir Volatility

As triple-witching approaches, traders brace for volatility driven by the expiration of equity options and futures. While FedEx and Nike highlight softness in consumer and industrial segments, Micron’s results underscore selective strength in AI-linked tech. With the S&P 500 pushing to snap a month-long slump, focus turns to next week’s data, including durable goods and consumer sentiment, for fresh macro direction.

More Information in our Economic Calendar.