Micron Technology shares soared 17% on Tuesday, pushing Nasdaq Composite to a new all-time intraday high. The index with a strong presence in technology companies advanced 0.9%, while the S&P 500 rose 0.5% in the session. Dow Jones Industrial Average fell 127 points, or 0.3%, contrary to other indicators.
Micron’s valuation surpassed the $1 trillion mark in market value during the day. Analistas and Wall Street remain optimistic about the company. UBS projects an appreciation potential of more than 100% for the shares, citing benefits from long-term contracts.
Setor memory reacts with widespread gains
Empresas competitors also recorded significant increases in the memory chip segment:
- Seagate Technology advanced 3%
- Western Digital rose 8%
- ETF Roundhill Memory (DRAM) added 12%
The streak of gains contrasts with the beginning of the week, when the sector faced widespread selling. Analysts point to the recovery of the semiconductor market as a determining factor for the positive performance.
Negociações with Irã sustain confidence in markets
President Donald Trump stated on Monday that negotiations with Irã to end the war were “progressing well.” Apesar declared optimism, Trump warned that the US could go on the offensive if the talks fail.
The US reported in the early hours of Tuesday that it had carried out “self-defense” attacks in the south of Irã. Segundo Tim Hawkins, U.S. Comando Central spokesman, targets included missile launch sites and Iranian vessels attempting to lay mines. Hawkins stressed that the US acted with “restraint during the ongoing ceasefire.”
Investidores closely monitors these developments. Ron Albahary, LNW’s chief investment officer, noted that there are investors who are “pathologically optimistic” that the war will end soon. Contudo, warned of the contrast between this optimism and the fragility of the American economic base, with inflation “likely becoming systemic”.
Petróleo regains ground after attacks
West Texas Intermediate fell 2% during the session, with July futures trading at $93 per barrel. Brent, in turn, rose 4%, reaching US$ 100 per barrel. The recovery comes after significant losses in previous sessions, when US crude oil recorded its worst week since April 17.
The drop in oil prices boosted the overall performance of markets last week. The S&P 500 gained 0.9%, notching its longest streak of weekly gains since late 2023. Dow Jones rose 2.1%, marking its third weekly gain in four weeks. Nasdaq rose 0.5%, its seventh gain in eight weeks.
Federal Reserve maintains moderate expectations
Investors’ expectations regarding Federal Reserve’s looser monetary policy have moderated. Operadores prices just a 13% probability for an interest rate increase in July, up from 0.9% recorded a month ago, as per CME’s FedWatch tool Group. Crude oil continues to trade well above the levels observed at the beginning of the year, maintaining pressure on prices at high levels.
US stock markets remained closed on Monday due to the Memorial Day holiday, resuming operations this Tuesday with strength concentrated in the technology sector.
