U.S. stock futures ticked higher Tuesday night as traders sought to recover from the prior session's big tech sell-off and looked ahead to the release of
Micron Technology's earnings report
Shares of Micron rose more than 2% in extended trading after the stock tumbled 13% in the regular session. Sandisk, which also suffered a 13% decline in the previous session, gained more than 2%.
A rout in the technology sector dragged the
S&P 500 and tech-heavy Nasdaq Composite lower on Tuesday, with the averages respectively losing 1.44% and 2.21%. The blue-chip Dow Jones Industrial Average shed 45.87 points, or 0.09%.
Investors sold off semiconductor-adjacent stocks in Tuesday's session, with the
VanEck Semiconductor ETF (SMH) ending the day 7% lower. Intel fell 6%, and Qualcomm shed 8%. Traders rotated into moved into more defensive names, lifting Walmart nearly 2% and boosting tech stalwart IBM 5%.
"I think when you hear about the discussions on…around technical positioning exhaustion, those may be true, but I would argue there might be some fundamental risk emerging as well," said Dan Skelly, head of market research and strategy at Morgan Stanley Wealth Management, on CNBC's "
Closing Bell: Overtime" on Tuesday afternoon.
"We've heard about pricing wars among some of the model builders, we've heard about rental prices for old GPUs starting to decline, and we've also seen a shift in tone from Microsoft, who led the AI launch three years ago with ChatGPT and their partnership with Open AI," he added. "Microsoft [is] now talking about a change in strategic direction for lower-cost models."
Micron will report its latest earnings after the market closes on Wednesday. Analysts polled by FactSet see earnings of $20.83 per share on revenue of $35.75 billion.
Micron has had an astronomical run in 2026, with shares hitting a
new all-time high on Monday. But Jay Woods, chief market strategist at Freedom Capital Markets, warned the stock could fall after the earnings report.
"Look for this to pull back. If it pulls back, pull back down to $1,000. That's going to sound like a big drawdown, but it's something that traders will be watching as it starts to get in line with this 20-day moving average," he said.
A drawdown to the $1,000 level would mark a slide of nearly 5% for Micron, which ended Tuesday at $1,051.77 per share.
Paychex will report earnings before Wednesday's opening bell. Investors will also watch for building permits and new home sales readings for May.
<small>Source: CNBC</small>
