Micron Earnings Test AI and Chip Demand 24/06/2026

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Market wrap:

• Technology shares came under heavy pressure Tuesday, dragging the S&P 500 and Nasdaq Composite lower as investors continued to cut exposure to semiconductor-linked names. The S&P 500 fell 1.4%, while the Nasdaq dropped 2.2%. The Dow Jones Industrial Average slipped 46 points, or 0.1%, holding up better as traders rotated into more defensive areas of the market. Semiconductor weakness was broad. The VanEck Semiconductor ETF slid 7%, with Intel falling 6% and Qualcomm losing 8%. Defensive names attracted inflows, with Walmart rising nearly 2% and IBM gaining 5%. 
• Oil prices extended their decline in Asian trading as fears of supply disruption continued to ease. Brent crude fell below $77 a barrel, while WTI traded near $72.50, even as investors continued to monitor developments in the Strait of Hormuz. President Donald Trump criticized oil companies for not lowering gasoline prices faster as crude prices retreated. Micron earnings are now the main event after Wednesday’s close. Analysts expect earnings of $20.83 per share on revenue of $35.75 billion, but after the stock’s huge 2026 rally, some strategists warn the bar may be difficult to clear. Paychex reports before the open, while traders will also watch May building permits and new home sales data.

Mag7 selloff signals AI rotation

• The “Magnificent Seven” trade is showing fresh cracks as surging AI spending, sticky inflation and a more hawkish Fed push investors to rethink Big Tech exposure. The MAGS ETF has fallen into correction territory, dropping more than 10% from its May high, marking the group’s sharpest retreat since the tariff-driven selloff in April 2025. Investors are not abandoning AI, but they appear to be rotating deeper into the AI supply chain. Memory stocks, chip infrastructure names and other second- and third-derivative AI plays are attracting more attention as traders look beyond the companies spending on AI to the firms benefiting from that spending. 
• The shift also reflects growing concern over Big Tech’s rising capital intensity. Alphabet, Amazon, Meta and Microsoft are on track to spend roughly $700 billion on AI this year, forcing investors to question how quickly those investments will generate returns. For now, the Magnificent Seven remain central AI winners, but the market is starting to ask whether the next leg of the trade belongs to the suppliers, infrastructure providers and application layers behind the AI boom.

Stocks on the move:

• FedEx (FDX): Shares fell about 6% after fourth-quarter revenue narrowly beat expectations, but failed to impress investors.
• KB Home (KBH): Shares rose 2% after fiscal second-quarter revenue came in slightly above estimates, though earnings missed expectations.
• Cerebras (CBRS): Shares dropped 8% after its first earnings report as a public company showed a quarterly loss and weaker expected core gross margins.
• Nike (NKE): Shares gained 1% after announcing CFO Matthew Friend will step down and be replaced by Pfizer CFO David Denton in August.
• Worthington Enterprises (WOR): Shares tumbled nearly 10% after fiscal fourth-quarter earnings and revenue missed Wall Street forecasts.

Watchlist: SPCX, MU, IBM, FDX, KBH, CBRS, NKE, SNDK, GOOGL, PAYX

Key Economic Events Today:

EST time

10:00 am: USD New Home Sales
10:30 am: USD Crude Oil Inventories


Earnings

BMC (Before Market Open): Paychex (PAYX), Novaglod (NG), Daktronics (DAKT)

AMC (After Market Close): Micron (MU), Trip.com (TCOM), Jeffries (JEF)


The TEFS Analyst team wishes you a successful day!