Finance

Micron Technology shares jumped nearly 16% after the memory-chip maker reported revenue and profit figures that significantly exceeded analyst expectations. The company's robust growth forecast provided a boost to AI-linked firms like Qualcomm and Western Digital, reinforcing investor confidence in the long-term sustainability of artificial intelligence infrastructure spending.

Final government readings for the first quarter of 2026 showed the U.S. economy expanded at an annualized rate of 2.1%, an upward revision from the previously estimated 1.6%. Despite this overall growth, the report indicated that consumer spending nearly stalled, raising questions about the resilience of domestic demand in the face of persistent inflation signals.

The Federal Reserve's preferred inflation gauge, the Personal Consumption Expenditures (PCE) index, reached a three-year high of 4.1% in May. This acceleration has reinforced the hawkish stance of the central bank, with many officials now projecting that benchmark interest rates will remain in the 3.6% to 4.1% range through the end of 2026.