Finance

Micron Technology experienced a sharp double-digit price drop ahead of its quarterly earnings release, which is expected to provide critical insight into the durability of the AI hardware boom. Despite the pre-earnings selloff, analysts have significantly raised price targets for the chipmaker, citing structural demand for high-bandwidth memory and a new strategic partnership with Anthropic.

Market expectations for interest rate cuts have reversed, with traders now pricing in the possibility of multiple rate hikes following hawkish signals from new Fed Chair Kevin Warsh. Persistent inflationary pressures, exacerbated by elevated energy costs from Middle East tensions, have kept the Personal Consumption Expenditures Price Index well above the central bank's 2% target.

U.S. Treasury yields edged higher as investors reacted to the potential for tighter monetary policy, leading to a notable flattening of the yield curve. The spread between two-year and ten-year notes narrowed to its smallest level in over a year, signaling investor caution regarding future economic expansion despite recent resilient data.