Finance

Micron Technology's stock surged more than 15% after reporting a massive revenue increase and a profit margin of nearly 85% driven by insatiable AI demand. The blowout results provided a much-needed lift to the semiconductor sector, with related companies like Sandisk and Western Digital also seeing significant gains. This strong performance served as a critical counterweight to the broader technology selloff, suggesting the AI infrastructure boom remains resilient despite valuation concerns elsewhere.

The May Personal Consumption Expenditure (PCE) price index rose 0.4% month-over-month, matching analyst expectations and bringing the annual rate to 4.1%. While inflation remains well above the Federal Reserve's 2% target, the lack of an upside surprise helped push the 10-year Treasury yield down to approximately 4.38%. Investors are cautiously optimistic that a recent retreat in energy prices may help lower future inflation expectations, though most still anticipate interest rates to stay higher for longer through 2026.

Oil prices experienced significant volatility following reports of an attack on a cargo ship in the Strait of Hormuz, a vital energy chokepoint. While Brent crude initially dipped toward $72, it bounced back to trade near $75 per barrel as traders weighed supply risks against a general global easing of price pressures. The ongoing conflict involving Iran continues to test market stability and has led to warnings from regional authorities regarding safe passage guarantees for commercial shipping.