U.S. Stock Futures Show Signs of Recovery
On Tuesday night, U.S. stock futures saw a rise as traders attempted to bounce back from a significant tech sell-off earlier in the day. This recovery came amidst anticipation of stock market announcements, most notably involving Micron Technology’s upcoming revenue report.
S&P 500 futures increased by 0.2%, while Nasdaq 100 futures went up by 0.4%. Futures linked to the Dow Jones Industrial Average gained 7 points.
After experiencing a drop of 13% during regular trading, Micron’s stock rallied more than 2% in after-hours trading. Similarly, SanDisk also climbed over 2% after its own pre-market decline.
The technology sector’s downturn has been a drag on the economy, with the S&P 500 and the Nasdaq Composite indices dipping 1.44% and 2.21%, respectively. The Dow Jones Industrial Average saw a minor drop of 45.87 points, or 0.09%.
Traders were seen selling off semiconductor stocks on Tuesday, with the VanEck Semiconductor ETF finishing the day down 7%. Intel fell by 6%, while Qualcomm decreased by 8%. In a contrasting move, investors shifted towards more defensive stocks, like Walmart, which rose nearly 2%, and even heavier tech stocks, such as IBM, which increased by 5%.
Dan Skelly, head of market research and strategy at Morgan Stanley Wealth Management, mentioned on CNBC that while technical exhaustion might be a factor, he believes fundamental risks are also emerging. He pointed out discussions about price wars among model builders and a decline in rental prices for older GPUs.
Micron is expected to release its financial results after the market closes on Wednesday, with analysts forecasting earnings of $20.83 per share and revenue of $35.75 billion.
The stock has performed impressively in 2026, recently hitting an all-time high. However, Jay Woods, chief market strategist at Freedom Capital Markets, cautioned that the stock could potentially decline following the earnings report. He suggested that if Micron’s stock retreated to $1,000, it might align with its 20-day moving average, making it a focus for traders.
A drop to the $1,000 mark would mean a nearly 5% decline from Micron’s closing price of $1,051.77 on Tuesday.
Additionally, Paychex is slated to announce its earnings before the market opens on Wednesday. Meanwhile, investors are also looking ahead to data on construction permits and new home sales for May.
