Micron surged overnight on strong earnings and guidance, lifting other memory and chip stocks in a mixed session for major indexes. The S&P 500 and Nasdaq slipped as AI jitters returned, while the Dow rose, reflecting a narrow rally in tech-heavy sectors.
Trading remained choppy as investors weighed the impact of Micron's results against broader tech weakness. The Fed's preferred inflation gauge is due later this week, adding to uncertainty. Meanwhile, oil's deepening slump added pressure on energy stocks, further complicating the market picture.
Micron's gains provided a tailwind for other chip and memory plays, but the positive spillover was limited. The Nasdaq's decline highlighted persistent wariness around AI-exposed names, even as some hardware makers rallied on the news. The Dow's advance, by contrast, was supported by sectors less sensitive to tech jitters.
Analysts remain divided on whether Micron's strength can sustain broader chip sector momentum amid macro headwinds. Caution prevails as traders await the inflation data, which could reshape rate expectations and test recent equity gains.