Record Close for S&P 500 and Nasdaq; Micron up 19%

Quick overview

On Tuesday, the Nasdaq and S&P 500 set new records thanks in part to strong semiconductor stocks like Micron Technology (MU), which jumped 19%.

As premarket trading started for Wednesday, the Nasdaq Composite stock index gained 0.7% while the S&P 500 and Dow ticked up 0.3% and 0.2%, respectively. Chip stocks continue to climb dramatically, with both Micron Technology and Dell Technologies (DELL) both rising sharply this week.

Semiconductor shortages are affecting market prices while high demand from AI companies ensure that chips are sold quickly as they become available. Oil prices continue to drop, with WTI (West Texas Intermediate) futures falling 3.5% to $90 per barrel. Brent crude oil is also down, dipping 3.27% to 96.6% on Wednesday while tensions in the Middle East appear to ease over the Strait of Hormuz.

Semiconductor Stocks Surge Higher in Major Earnings Week

This week is an important one for corporate earnings, and Marvell Technology (MRVL) is one of the market’s heavy hitters scheduled to report on quarterly earnings later today. Investors are bullish on this stock, and it is up 6.5% on Wednesday after climbing about 6% the previous day. Wall Street raised price targets for this stock ahead of the earnings call even though the stock is already up 144% for the year so far.

Micron stock is also bullish, and the company surpassed a market capitalization of $1 trillion on Tuesday. That stock has been one of the biggest gainers this week. Their most recent quarterly report showed that data center revenue was up by 150%, and the company’s HBM (high bandwidth memory) products are sold out through the rest of the year.

Another company planning to release an earnings report this week is Salesforce (CRM), and analysts are less bullish on this stock. CRM dropped 0.94% in premarket trading and could dive further as investors bail on this doubtful stock. Salesforce has been one of the casualties of the rapidly expanding AI market, losing close to 30% of their market value since the beginning of the year.

Technology stocks are widely bullish this week, and Sandisk (SNDK) has been one of the top performers, and yet analysts anticipate a strong upside for the stock this year. However, Salesforce’s performance proves that for these tech stocks to do so well, other stocks may have to suffer, and this highly volatile sector of the stock market continues to be a battleground where the stakes are incredibly high and the potential for loss is tremendous.

ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.

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