Micron’s pre-earnings slide sparks broader selloff in memory and semiconductor shares, weighing on major US equity benchmarks.
The S&P 500 and Nasdaq turned negative as memory and chip stocks slumped ahead of Micron’s earnings report. Micron fell 2.5%, extending a 10% drop from yesterday, amid concerns over potential AI demand slowdowns. The stock’s technical resistance at $1213 could trigger further profit-taking even if earnings beat expectations.
Other semiconductor names followed Micron’s decline, with Western Digital down 6.2% and Seagate off 6.0%. Broader tech laggards included NVDA (-0.9%) and TSLA (-1.5%), while travel stocks like BKNG (+8.4%) rallied on lower oil prices. The reversal erased earlier session gains, echoing recent choppy trading patterns.
Investors remain cautious as AI-driven capex growth faces potential bottlenecks or ROI pressures. The Fed’s hawkish stance last week continues to cast a shadow over market sentiment, though AI remains the dominant theme.