NEW YORK, June 24, 2026, 11:01 (EDT)
- The S&P 500, Nasdaq and Dow traded up in late morning. Energy stocks fell behind.
- Micron’s numbers after the bell are up next for the AI-driven chip trade, coming off a steep drop.
- Traders are still focused on rate-hike expectations, Thursday’s PCE inflation numbers and uncertainty around the U.S. and Iran as the top risks.
Stocks pushed higher in the U.S. on Wednesday, with the S&P 500 up 0.44%, the Nasdaq gaining 0.39%, and the Dow rising 0.53% in late-morning trading, Reuters reported, citing market data delayed at least 15 minutes. Consumer discretionary and healthcare names were strong, but energy slipped after oil prices moved lower.
S&P 500 and Nasdaq swung around after falling two sessions in a row. Tech stocks traded mixed ahead of Micron Technology’s earnings, which come out after the bell. Traders are watching the release for signs about AI demand and data center costs. “Micron’s earnings this time are central to market sentiment,” said Brent Schutte, chief investment officer at Northwestern Mutual Wealth Management Company. Reuters
Micron has turned into one of the year’s top stories. Reuters said the stock soared 740% over the past year, pushing the company’s market cap to $1.20 trillion. Analysts are looking for third-quarter profit up more than 1,000% and revenue up about 285%. Sandisk, also in memory chips, fell after chips sold off hard Tuesday.
The worry isn’t just about demand. It’s also about what investors are willing to pay. “It’s not a bubble in the sense that real growth isn’t there,” Rick Meckler, partner at Cherry Lane Investments, said. Kenny Polcari, chief market strategist at Slatestone Wealth, put it this way: “When a stock is priced for perfection, perfection becomes the minimum requirement.” Reuters
J.P. Morgan bumped up its S&P 500 year-end call to 7,800 from 7,600, pointing to upbeat earnings from AI spending and ongoing strength in the economy. The firm’s new 2026 EPS forecast is $350. The index had risen 7.6% on the year ahead of Wednesday’s change.
Oil’s drop helped stocks away from energy. Brent crude slid more than $3 to $73.76 a barrel, trading at lows last seen before the Iran war. Traders pointed to better tanker movement through the Strait of Hormuz. “The market is pricing in the broader scenario of Iranian oil re-entering the global market,” said Tim Waterer, chief market analyst at KCM Trade. Reuters
Energy stocks dropped, with the S&P 500 energy sector down 2.3% as crude prices dropped. Traders weighed mixed statements from the U.S. and Iran about money, the Strait of Hormuz, and Israel’s fighting in Lebanon. President Donald Trump said Iran told the U.S. it was not pushing for tolls.
Rate jitters kept markets in check. The dollar hit its strongest level in 13 months as traders upped bets the Federal Reserve could hike rates. According to CME FedWatch, chances for a July rate hike stood at about 35%, while markets priced more than a 70% chance for September. “The U.S. dollar is still the preferred safe haven,” said Ray Attrill, head of FX strategy at National Australia Bank. Reuters
PCE price index lands Thursday at 8:30 a.m. EDT. The Fed tracks PCE for signs on inflation. Bureau of Economic Analysis reported a 3.8% year-over-year rise for April, with the coming release set to show May numbers.
Home sales slip as rates bite. New U.S. single-family home sales dropped 7.3% in May to a seasonally adjusted annual pace of 580,000 units. Median price came in at $424,900. Reuters said higher rates and prices were weighing on buyers.
Cerebras Systems shares dropped roughly 14% after the AI-chip company said its full-year adjusted gross margin will slip below the first quarter’s level. That margin forecast falls well short of Nvidia’s mid-70% and AMD’s mid-50% levels. Still, Morgan Stanley’s Joseph Moore said, “With demand exceeding supply, and no major supply bottlenecks, we see room for material upside.” Reuters
FedEx shares dropped 2% as slimmer margins in the main delivery unit led to new concerns around the company after its FedEx Freight spinoff. Operating margin at Federal Express came in at 7.7%, down from 8.4% last year, with the company facing higher costs for labor, transport, and fuel.
The rally faces hurdles if Micron posts a weak forecast, PCE runs hot, or traders start pricing quicker Fed hikes. Another setback in U.S.-Iran talks could drive oil up and spark the inflation fears that drove yields and mortgage rates higher earlier this year.
Related articles: NASDAQ:NVDA
