U.S. stock futures pointed to a mixed open on Thursday, with the Nasdaq leading gains as robust earnings from Micron Technology reinforced confidence in artificial intelligence spending, while climbing Treasury yields continued to pressure the broader market.
Dow futures hovered near the flatline, S&P 500 futures were little changed, and Nasdaq 100 futures advanced roughly 0.6%, or about 202 points, according to market data.
The 10-year Treasury yield climbed above 5.3%, and the 30-year yield approached 5.7%, levels not seen in over two decades. This persistent rise in long-term borrowing costs has become a central concern for investors, overshadowing recent signs of cooling inflation.
Yields Set the Tone
The 10-year Treasury yield reached approximately 5.34%, while the 30-year touched 5.68%, extending a brutal quarterly bond selloff. The move is increasingly about more than the next Federal Reserve decision. Investors are demanding higher compensation for inflation, heavy government borrowing, and the financing needs of the AI investment boom.
Micron Delivers the AI Signal
Micron reported fiscal fourth-quarter revenue of $54.23 billion and adjusted earnings of $33.42 per share, both exceeding analyst expectations. The company guided to about $61.5 billion in revenue for the current quarter, well above the $57 billion consensus. Customer commitments under long-term agreements increased to $32 billion from $22 billion in June, signaling sustained demand for memory chips used in AI applications.
Despite the strong results, Micron's stock was relatively subdued in pre-market trading, reflecting that much of the good news had already been priced in by investors.
Chip Rally Lifts Nasdaq
Micron's numbers lifted the wider semiconductor complex. Nvidia, AMD, Lam Research, and Applied Materials all gained in pre-market trading as investors interpreted the report as confirmation that AI infrastructure spending remains robust.
Alphabet rose more than 2% after Google unveiled Gemini 4 Argon, its new flagship AI model designed for complex software, enterprise, and cybersecurity tasks. This helped explain why Nasdaq futures were positive while Dow futures remained under pressure.
Fed Rate Hike Odds Drop
Wednesday's softer PCE inflation reading shifted the near-term rate debate. Markets now assign roughly a 38% chance to an October rate hike, down from around 50% a day earlier and more than 70% a week ago. Goldman Sachs has also moved its forecast for the next rate increase to December.
Investors will hear from Federal Reserve officials Christopher Waller, Philip Jefferson, Michelle Bowman, and Lisa Cook on Thursday, according to the central bank's official calendar.
Economic Data and Oil in Focus
Weekly jobless claims are due before the open, followed by September's ISM manufacturing index at 10 a.m. ET. The ISM gauge stood at 54.6 in August, comfortably above the 50 level separating expansion from contraction. A strong reading could reinforce the view that the economy can absorb higher rates and keep long yields elevated.
Oil remains another complication, with Brent crude trading near $100 as stalled U.S.-Iran negotiations keep inflation risks alive.
This article is for informational purposes only and does not constitute financial advice.
