U.S. stock index futures climbed early Thursday, with Nasdaq 100 futures leading a broad rally after Micron Technology Inc posted fiscal fourth-quarter results that exceeded expectations. The memory chipmaker's performance helped reinforce investor confidence in the artificial intelligence trade, lifting broader technology stocks ahead of the final quarter of the year.
By 01:38 ET, S&P 500 futures rose 0.64% to 7,764.50 points. Nasdaq 100 futures surged 1.2% to 31,063.0 points, while Dow Jones futures gained 0.4% to 51,480.0 points. This optimism follows a difficult September for Wall Street, where soaring Treasury yields and continued U.S.-Iran tensions drove losses across major indexes.
Micron reported adjusted earnings of $33.42 per share, surpassing the consensus estimate of $31.16. The company also provided guidance for the current quarter of $38.15 per share, plus or minus $1.00, which exceeded street estimates of $36.02. Despite the strong numbers, Micron shares rose as much as 1% in choppy aftermarket trade before briefly reversing gains to trade flat.
The earnings report included caveats that tempered the initial enthusiasm. Micron flagged slightly softer gross margins for the current quarter and forecast higher operating expenses for fiscal 2027. Management provided limited details on plans for increased shareholder returns, though the company stated it would increase those returns in December.
Global chipmaking stocks followed the positive tone, with major firms in Japan, South Korea, and Taiwan all posting gains on Thursday. This movement occurred even as Wall Street indexes fell on Wednesday due to a sustained rise in bond yields. The S&P 500 dropped 0.25% and the Dow Jones Industrial Average fell 0.86% on Wednesday, while the NASDAQ Composite added 0.2%. For September as a whole, the S&P 500 fell 0.4% and the Dow declined 4.3%, whereas the Nasdaq gained 1.9%.
The pressure on equities stems in part from the bond market, where the 10-year Treasury yield hit a fresh 19-year high on Wednesday and remained well above 5.2%. This surge occurred despite softer-than-expected August PCE price index data released that same day. Markets continue to question whether the Federal Reserve has sufficient headroom to aggressively raise interest rates in coming months, with nonfarm payrolls data due Friday expected to provide further cues on monetary policy direction.