Global financial markets staged a powerful rally, driven by renewed confidence in artificial intelligence investments following strong financial results from Micron Technology, alongside falling oil prices and a return to relative stability in energy markets.
Futures on the Nasdaq 100 and S&P 500 rose 2.2% and 0.8% respectively, while Micron's stock surged around 16% in after-hours trading after upbeat sales and earnings forecasts reinforced optimism about the AI-linked chip sector's growth cycle.
The positive momentum extended to Asian markets, where the MSCI Asia-Pacific index climbed 1.5%, supported by gains in SK Hynix and Samsung Electronics shares, while the technology sector continued to extend gains in Europe, with the Stoxx 600 index rising around 0.4%.
In commodity markets, Brent crude fell below $73 per barrel, surrendering its war-risk premium, as supplies through the Strait of Hormuz improved and geopolitical concerns eased, boosting investors' risk appetite.
Meanwhile, bond and currency markets moved in divergent directions, with the dollar holding at elevated levels while US Treasury yields rose amid anticipation of inflation data, heightening market sensitivity to the US Federal Reserve's monetary policy signals.
Analysts affirmed that Micron's results reconfirmed the resilience of the AI investment cycle, particularly given sustained strong demand for memory chips used in data centres against a backdrop of limited supply.
Bloomberg experts also noted that major companies such as SK Hynix and Kioxia are preparing to capitalise on this wave through new expansions and funding rounds, reinforcing expectations that momentum in the semiconductor sector will continue in the coming period, despite warnings of potential volatility linked to interest rates and inflation.