Can Micron’s Big Earnings Beat Bring the Mojo Back to Tech Stocks?

What could be more exciting than Wendy’s (WEN) stock price jumping more than 25%? Micron (MU) earnings! The company beat estimates, and the stock was trading over 12% in after-hours trading.

The biggest takeaway from Micron’s earnings call was that investors may not need to worry much about weakening demand for memory. This matters after Tuesday’s tech selloff, which may have left investors a little uneasy. The Nasdaq Composite ($COMPQ) dropped more than 2%, with semiconductor and memory stocks getting a big hit. Stocks tried to rebound on Wednesday, but the rally faded in the afternoon.

Here’s where the indexes closed.

• S&P 500: 7,358.22 (-0.10%)
• Nasdaq Composite: 25,476 (-0.43%)
• Dow Jones Industrial: 51,848.90 (+0.35%)

The Nasdaq closed below its 50-day simple moving average (SMA), a key support level. In June, the index tested that level and bounced. With the index closing below that level, you have to think about how much technical damage has been done.

It’s worth taking a closer look at the chart of Invesco QQQ Trust (QQQ).

QQQ is still holding above its 50-day SMA, but has slipped below its 21-day exponential moving average (EMA), which is beginning to slope lower. Volume is also worth noting, as there wasn’t a major spike during the last two tech stock selloff days; it rose slightly, but not enough to suggest panic selling.

The Relative Strength Index (RSI) and Percentage Price Oscillator (PPO) in the lower panels show that momentum has contracted, but neither indicator is at oversold levels.

As of this writing, market breadth is relatively neutral for the Nasdaq and Dow but is leaning bullish for the S&P 500, S&P 400 Mid Cap Index ($MID), and S&P 600 Small Cap Index ($SML). Mid- and small-caps are showing more resilience. The S&P 600 closed at a new high, and the S&P 400 bounced off its 21-day EMA and is looking like it’s getting ready for a move higher.

The Cboe Volatility Index ($VIX) started moving higher on Tuesday, but stayed below the 20 threshold level. On Wednesday, it fell in the final minutes of regular trading and closed at 18.63.

If Micron’s stock price follows through to the upside on Thursday, it could help spark a reversal in semiconductor and memory stocks. Given that there haven’t been signs of panic selling, the focus will be on whether the Nasdaq can recover and move back above its 50-day SMA.

All Eyes on Inflation

On Thursday, we get the May PCE data, which could offer more clues about whether higher interest rates are likely to be on the table this year. A hot reading could push Treasury yields higher and pressure stocks. If inflation eased, it could give investors some relief, although the May data could reflect the impact of higher oil prices at the time.

Treasury yields have been moving lower. The 30-year, 10-year, and 5-year Treasury yields traded lower on Wednesday. The 10-Year US Treasury Yield Index ($TNX) fell more than 2%, closing below its 50-day SMA. As of this writing, the market has priced in a 49.9% chance of a quarter-point rate hike in September. We’ll see whether Thursday’s PCE data changes that probability.

The decline in yields helped rate-sensitive asset groups. Homebuilders were among the top-performing industries, followed by Retail and Regional Banks.

Oil Slides

Oil prices have been moving lower as ships continue traveling through the Strait of Hormuz. Light Crude Oil ($WTIC) and Brent Crude ($BRENT) are both trading below their 200-day SMAs. For now, the market appears to have priced in some stabilization in oil prices. Where crude goes from here will likely depend on the geopolitical backdrop.

$WTIC is trading close to its March 2, 2026 low, which is the first trading day after the U.S.-Iran war started. Will the price of crude oil fall lower and fill the gap? That's something to watch for.

The Bottom Line

Will Micron’s strong earnings be enough to bring the mojo back to tech stocks? A lot depends on the PCE data. If the reading comes in too hot, growth stocks could come under pressure again. But if oil prices keep falling, investors may be willing to look past a firmer inflation number.

I’ll be monitoring the intraday charts of QQQ, SPY, MU, and $WTIC, along with the price action in Treasury yields, before Thursday’s open.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.