Micron Stock Surges Over 200% This Year: Experts Expect Another High
Micron Technology (MU) has seen its stock hit record levels this week, just before its upcoming earnings report. Analysts from Citi recently increased their price target for the company from $275 to $300—quite a leap considering their target was just $150 back in September. They pointed to a significant rise in demand for advanced memory chips, especially those used for artificial intelligence, and believe this will lead to major investments in production capacity.
The stock gained over 4% on Wednesday, closing at nearly $264, which is more than triple its value from the start of the year.
Fed’s Future Moves Uncertain After December Rate Cut
The Federal Reserve has lowered its key policy rate by a quarter point, marking the third consecutive cut. The current federal funds rate now sits between 3.5% and 3.75%. Chairman Jerome Powell mentioned in a news conference that this rate is within a “neutral” range, where neither economic stimulation nor slowdowns should occur.
Powell indicated that the Fed is flexible with future adjustments, stressing the importance of upcoming economic data. Although officials anticipate just one more rate cut next year, the situation is fluid and might change with new leadership and data.
Bitcoin Price Remains Below Previous Highs: Fed Rate Cut Impact
After the Fed’s rate decision, Bitcoin (BTCUSD) briefly rose to about $94,000, but then fell back, signaling some disappointment over the lack of clear future cuts. As the crypto market adjusts to recent lows, there’s a sense that the Fed’s influence on Bitcoin is increasing, though fluctuations are still evident.
An analyst pointed out that Bitcoin’s behavior may shift to mirror gold’s stability in the future, but currently, it’s heavily affected by economic trends. Meanwhile, Standard Chartered slashed its year-end Bitcoin target from $200,000 to $100,000, citing a typical correction following a 36% decline from its last peak.
Eli Lilly’s Stock Gains After Positive Trial Results on Obesity Drug
Pharmaceutical company Eli Lilly (LLY) shares increased by 2.5% in pre-market trading following promising Phase 3 trial results of its new obesity treatment drug, letaltortide. This drug demonstrated impressive results, prompting reshaping expectations for future weight-loss medications.
In the trial, patients with obesity and knee osteoarthritis achieved notable weight loss over 68 weeks, marking significant improvements in their quality of life. The company’s stock has appreciated over 25% this year.
Oracle’s Stock Declines Despite New AI Partnerships
Oracle’s stock took an 11% hit after it reported earnings, despite announcing fresh collaborations with Nvidia and Meta, which expanded its backlog to an impressive $523 billion. Although revenue increased by 14% from last year, it didn’t meet expectations, overshadowing the positive news from partnerships.
Analysts are now closely monitoring Oracle’s demand for AI products, as concerns about the company’s future viability mount.
Stock Futures Drop Following Fed Rate Cut
Futures for major U.S. stock indices have experienced declines, with Dow Jones futures down by 0.1%, S&P 500 by 0.5%, and Nasdaq 100 futures dropping by 0.8%. This follows a tense market reaction to the Fed’s recent policy changes.
