As Micron Boosts AI Trade Ahead of PCE, Stocks Rise – Europe Market Wrap
Global equities rallied after Micron Technology delivered a blowout forecast, reinforcing confidence that the AI investment cycle remains intact and reviving risk appetite following this week’s technology-led selloff.
Nasdaq 100 futures climbed 2.2%, while S&P 500 futures gained 0.7%. Micron surged 17% in premarket trading after issuing a quarterly sales outlook that comfortably exceeded Wall Street expectations. Optimism was further supported by Qualcomm, whose sales guidance also pointed to sustained demand from companies investing heavily in AI data centre infrastructure.
Oil prices continued to retreat, with Brent crude falling 1.4% to below $73 per barrel as tanker traffic through the Strait of Hormuz increased following progress toward a US-Iran peace agreement. The decline erased the geopolitical risk premium that had built up during the conflict and provided an additional boost to broader market sentiment.
Treasuries declined while the Dollar traded little changed ahead of the latest US Personal Consumption Expenditures (PCE) inflation report, the Fed’s preferred measure of inflation. Investors will also closely watch speeches from NY Fed President Williams, Fed Vice Chair Bowman and Chicago Fed President Goolsbee after Fed Chair Warsh last week offered few signals on the future path of interest rates.
In China, authorities launched marketing for up to €5 billion of sovereign bonds, potentially marking the country’s largest-ever euro-denominated debt sale. Separately, the PBOC introduced an overnight tenor to its open market operations, another step in strengthening its framework for steering short-term borrowing costs.
