Finance

Micron Technology shares surged in extended trading after reporting fiscal third-quarter results that significantly exceeded analyst expectations for both revenue and earnings. The memory chipmaker's optimistic forward guidance, driven by robust demand for AI infrastructure, helped stabilize sentiment across the semiconductor industry following a sluggish regular session. This performance highlights a growing divide between companies benefiting directly from AI capital expenditures and those facing pressure from rising operational costs.

The Federal Open Market Committee, led by new Chair Kevin Warsh, recently voted to maintain the federal funds rate at a target range of 3.5% to 3.75%. Despite the pause, officials signaled a increasingly hawkish outlook, with many members now projecting a potential interest rate hike before the end of the year to combat persistent inflation. Markets are closely monitoring upcoming inflation data as the central bank reaffirms its commitment to returning price growth to its 2% target.

Global energy prices fell sharply, with Brent crude nearing pre-conflict levels following reports of improved tanker traffic through the Strait of Hormuz. The decline in oil prices provided a significant boost to the travel and airline sectors, which had been pressured by high fuel costs. While easing commodity prices offer a reprieve for some industries, the broader energy sector saw declines on Wednesday as investors adjusted to the lower price environment.