Stock Futures Churn Before Micron’s Earnings – Europe Market Wrap
Global equity markets steadied after a sharp AI-driven selloff, with investors turning their attention to earnings from Micron for fresh evidence that massive AI-related capital expenditure continues to translate into earnings growth.
US equity futures recovered modestly, with S&P 500 contracts rising 0.1% and Nasdaq 100 futures gaining 0.4% after the tech-heavy benchmark suffered a decline of more than 3% in the previous session. In Asia, the KOSPI rebounded 3.3%, helping regional equities stabilize following one of the index’s steepest selloffs on record. European stocks were little changed.
Micron remains a focal point for investors given its status as one of the biggest beneficiaries of AI infrastructure spending. Despite falling 13% on Tuesday, the stock remains up more than 260% this year and has been a leading contributor to the recovery from the market’s Iran war-related lows. The results are expected to provide a key test of whether current AI valuations remain justified by underlying demand.
The Dollar continued to strengthen as investors maintained a cautious stance toward risk assets. The currency advanced 0.3%, extending its rally to the longest winning streak in more than a month and reaching a fresh high for 2026. Gold slipped as the stronger Dollar reduced the appeal of bullion for international buyers.
The scale of AI investment remained evident elsewhere, with SK Hynix announcing plans to raise approximately $29 billion through a US listing, highlighting continued investor appetite for companies exposed to the AI supply chain.
Oil prices extended their recent decline as confidence in Middle Eastern shipping routes improved. Brent crude fell more than 2% to below $76 per barrel as an increasing number of tankers traversed the Strait of Hormuz with tracking systems active, signalling reduced security concerns following the interim US-Iran peace agreement. The continued easing in oil prices has helped reinforce expectations that energy-driven inflation pressures may moderate in the months ahead.
