Tech Rout Pauses Markets; Micron Earnings Loom as AI Test
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- S&P 500 and Nasdaq futures edged higher (ES=F +0.1%, NQ=F +0.5%) while Dow futures (YM=F) fell 0.1%, coming off steep closing losses as AI-focused names sold off for a second straight session.
- Micron (MU) shares sank 13% Tuesday and are down 13.18% in the article's data; the stock had been up more than 250% year-to-date before the rout, and its post-bell earnings are now the market's key AI read.
- Cerebras dropped more than 10% in premarket after its first earnings report since going public in May, forecasting profit margins that would lag rivals like Nvidia (NVDA).
- FedEx (FDX) cited rising transportation costs and 'shifting trade policy' for shrinking operating margins in after-hours results, with shares sliding premarket as the delivery giant acts as a broader economic bellwether.
- Iran and Oman have started discussing a system to charge fees for ships crossing the Strait of Hormuz, complicating President Trump's pledge that the waterway would remain toll-free.
- The selloff has been driven by a mix of lofty-valuation concerns, fears of massive AI-related spending, and worries about coming interest-rate hikes, per the source's framing.
Why it matters: Tonight's Micron report lands with the stock up 250%+ YTD but down 13% in a single session — a binary test for AI demand. With Cerebras already signaling that newer AI chipmakers can't match Nvidia's margins, a soft Micron read could deepen the sector's repricing rather than contain it.
Ask SkimNews
