US futures edge higher after yesterday’s 13% drop in chipmakers, but Micron’s post-close report may dictate near-term market direction.
US equity futures stabilized early Tuesday, with S&P 500 futures up 0.1% and Nasdaq futures gaining 0.5%, following a sharp selloff in tech shares. Memory chipmakers led declines, with Micron and Sandisk plunging over 13% after surging earlier in the week.
Despite the pullback, the S&P 500 and Nasdaq remain just 3% and 6% below record highs, respectively. Investors are now focused on Micron’s earnings call after the close, which could set the tone for the sector amid growing skepticism over AI-driven spending.
Analysts warn of a potential demand plateau in the chip industry, raising stakes for Micron to deliver strong results and justify lofty valuations.