Micron earnings beat lifts U.S. stock futures amid rising yields

Micron Technology Inc. (NASDAQ:MU) posted fiscal fourth quarter adjusted earnings of $33.42 per share, exceeding the $31.16 expected by analysts, a result that lifted U.S. stock index futures on Wednesday evening. The memory chipmaker also guided current quarter earnings per share at $38.15, plus or minus $1.00, which surpassed street estimates of $36.02. By 19:49 ET, S&P 500 Futures rose 0.36% to 7,743.25 points, Nasdaq 100 Futures climbed 0.4% to 30,822.50 points, and Dow Jones Futures increased 0.3% to 51,430.0 points.

Micron shares gained as much as 1% in aftermarket trade but pared those gains to trade flat following the company's earnings call. The stock's muted reaction followed management's flagging of slightly softer gross margins for the current quarter and forecasts for higher operating expenses in fiscal 2027. Investors also noted that management provided few direct details on plans to increase shareholder returns in December, despite stating that such increases are planned.

The stronger-than-expected results reinforced confidence in the artificial intelligence trade, supporting the view that AI-fueled demand will continue to underpin chipmaking and technology valuations in coming quarters. This development comes after September saw tech stocks rattle amid fears of slowing AI demand and growing concerns over technology safety, with several major frontier labs, led by Anthropic, calling for a slowdown in AI development.

Broader market gains were limited by a sustained rout in bond markets that pushed Treasury yields higher. Wall Street indexes fell during Wednesday's regular session as the 10-year benchmark yield hit a fresh 19-year high, remaining well above 5.2%. The S&P 500 fell 0.25%, the Dow Jones Industrial Average dropped 0.86%, while the NASDAQ Composite added 0.2%. For September, the S&P and the Dow fell 0.4% and 4.3% respectively, while the Nasdaq added 1.9%.

Softer-than-expected PCE price index data for August did little to stem the surge in yields, even as markets questioned whether the Federal Reserve had enough headroom to aggressively raise interest rates in coming months. Nonfarm payrolls data for September, due Friday, is expected to provide further cues on interest rates.