US Stock Markets Stabilize Ahead of Micron Earnings – Chip Stocks Lead Recovery

The recovery was driven primarily by a rebound in semiconductor stocks, after concerns over high valuations had weighed on the sector the previous day. Intel rose 1.8 percent, while Nvidia gained 0.4 percent. Micron's own shares, however, fell 0.7 percent on the day, after shedding roughly 13 percent on Tuesday. The company's quarterly results were expected after the closing bell. "Dort stehen heute zahlreiche Daten zur Veröffentlichung an," traders reported.

Semiconductor Sector Back on the Rise

Micron is considered one of the world's largest manufacturers of memory chips and is viewed as a key indicator of AI-related spending by tech companies, since its chips are used in data centers and high-performance computing systems. If the figures meet high expectations, this could bring the recent correction in tech markets to an end. The release is seen as a sentiment barometer for the entire semiconductor cycle.

In Asia, semiconductor stocks had already posted significant gains, pushing benchmark indexes in Tokyo and Seoul close to their recent record highs. "Hier zogen Halbleiterwerte wieder stark an und trieben den japanischen Nikkei-225 sowie den südkoreanischen Kospi wieder auf ihre jüngsten Rekorde zu," according to reports. Chip stocks also rallied notably in Europe: ASML Holding gained 4.5 percent, while Infineon rose by roughly five percent. In Asian trading, chipmakers Kioxia and SK Hynix had already announced plans for US listings, which were received positively by the markets. SK Hynix plans to launch trading of its secondary listing on Wall Street on July 10, aiming to raise more than $29 billion to expand production capacity.

In the currency and bond markets, the dollar extended its upward trend. The dollar index rose 0.2 percent, supported by the prospect of further interest rate hikes by the US Federal Reserve later in the year. The yield on ten-year US Treasury bonds, however, fell by 9 basis points to 4.40 percent. Bas Kooijman of DHF Capital S.A. noted that Thursday's focus would be on the PCE inflation data, the Fed's preferred inflation gauge. "Die erwartete Straffung könnte die Dollar-Stärke weiter antreiben und die Anleiherenditen auf einem erhöhten Niveau belassen," the expert said.

Currencies, Bonds and Commodities Under Pressure

Precious metals came under pressure in the commodity markets. Gold fell a further 2.6 percent to $4,003 per troy ounce, at times slipping below the psychologically important $4,000 mark. The strong dollar and the prospect of rising interest rates weighed on the metal. Silver dropped 5.3 percent to $58.72 per ounce, while platinum declined 4.1 percent to $1,583.65. Oil prices continued their downward trend. A barrel of North Sea Brent crude fell 4 percent to $74.02, after US President Donald Trump stated in a social media post that Iran had informed the US it would not charge fees from ships passing through the Strait of Hormuz. As a result, the oil price "seinen zwischenzeitlich immensen Anstieg seit März im Zuge des Nahost-Kriegs wieder komplett abgegeben," according to reports.

The pressure on gold prices was further amplified by the prospect of monetary tightening. Observers interpreted this as a signal that geopolitical risks in the Persian Gulf were easing in the short term. In the bond market, the combination of a robust dollar trend and geopolitical calm led to notably rising US yields. Europe's leading stock markets had already opened "überwiegend im Plus" in the morning, driven by semiconductor stocks. Sentiment across Asian markets remained broadly positive.

Corporate News Moves Individual Stocks

Several companies with relevant news also attracted attention on the US stock market on Wednesday. Verizon Communications lost 2.3 percent to make room for Alphabet's addition to the Dow Jones Industrial Average starting Monday. Alphabet's shares themselves rose 1.1 percent. The Google parent will be listed on Wall Street's leading index starting Monday. Shares of AI chipmaker Cerebras Systems, however, dropped 16.5 percent, even though the company had exceeded expectations in the third quarter. It was the first quarterly report since its IPO in May.

Qualcomm shed 3.7 percent after announcing a stock deal worth approximately $3.9 billion to acquire AI software company Modular. Modular offers software that enables AI to run efficiently across different hardware architectures, allowing developers to deploy AI at lower overall costs. FedEx lost 1 percent, although the logistics company had posted higher revenue in the fourth quarter thanks to increased freight rates and volumes; however, profits came in slightly lower, and margin performance was cited as a drag. Analysts at Morgan Stanley said FedEx's outlook was difficult to assess due to several structural changes in its financial reporting.

On the economic front, US new home sales provided a damper, having unexpectedly declined in May. The US current account deficit also widened in the first quarter of 2026. These data points dampened sentiment on equity markets but were unable to fundamentally halt the recovery trend. After the closing bell, the results of the US Federal Reserve's bank stress tests were also expected, which are seen as carrying signaling significance for the stability of the financial system. Additional discussion was generated by British budget airline Easyjet, which rejected a fourth non-binding offer from US investor Castlelake of £6.50 per share. Easyjet's shares nevertheless rose five percent to 566.87 pence. Castlelake, however, expressed hope that it could raise the offer if granted limited access to financial information. The Americans had most recently offered £6.25 per share.

Economic Data and Easyjet Takeover in Focus

Away from the markets, fashion retailer H&M made headlines. "Der Modekonzern H&M hat auch im zweiten Geschäftsquartal das schwache Konsumklima zu spüren bekommen," the company announced. In the three months through the end of May, revenue fell 3 percent to 54.8 billion Swedish kronor (approximately €4.95 billion). "Die Gewinnentwicklung der Schweden enttäuschte ebenfalls," according to reports. "Belastet wurde das Geschäft erneut auch von negativen Währungseffekten." H&M's shares last reacted with a decline of roughly 2.5 percent to the results. Analysts had expected a smaller drop in revenues.

In Germany, consumer sentiment meanwhile remains at a low level. "Die Kauflaune in Deutschland bleibt in Zeiten internationaler Krisen und schwacher Konjunktur auf niedrigem Niveau," the consumer research institutes GfK and NIM found. According to a study by the institutes, the overall consumer climate indicator rose in July to minus 29.2 points, from a revised minus 29.7 points previously. "Analysten hatten mit einer stärkeren Erholung der Konsumlaune gerechnet und waren im Schnitt von einem Wert von minus 28,0 Punkten ausgegangen," according to reports. Income expectations, which had already risen the previous month, edged up again. "Für den Juli prognostizieren die Konsumforschungsinstitute GfK und NIM nur eine geringfügige Aufwärtsbewegung," the researchers concluded.