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Micron Technology, Stocks, and Indices All Climbed While Yields Continue the Downslide

Miguel A. Rodriguez
Miguel A. Rodriguez
22 December 2023

Micron Technology showed a surge while stock and indices continued the upward trend. Read on to get the latest market news today!

Stocks and Indices Up – Are We in a Bull Run?

US stocks resumed their move higher after data on Thursday indicated the economy was heading in an upward direction, reinforcing expectations of interest rate cuts by the Federal Reserve.

The Nasdaq 100 Index rose yesterday after Wednesday's decline and returned to all-time high levels. Both the S&P500 and the Dow Jones experienced more modest increases and are beginning to show signs of exhaustion, from a technical point of view, after the impressive rally that began in early November.

US 10-Year Bond Still Moving Down as Interest Rate Cuts Are on the Horizon

Contributing to yesterday's strong tone was the drop in US Treasury yields, with the benchmark US 10-year bond falling to a seven-month low of 3.83% as bets continue to grow that the Federal Reserve will cut rates from highs in more than two decades in the spring.

As the futures market shows, there is a more than 68% chance that the Fed will reduce borrowing costs by 25 basis points as early as March.

Philadelphia Federal Reserve President, Patrick Harker added to those expectations by signaling his openness to reducing interest rates if inflation continues its current downward trend.

Chipmaker Micron Technology Surged 7%

Adding to the positive outlook was Micron Technology's favorable outlook, with the chipmaker's shares rising more than 7% after forecasting quarterly revenue above market estimates on Wednesday, due to the expected chip market recovery by 2024.

Micron's results are closely watched as it typically reports earnings ahead of other companies in the sector, and its memory chips may set a precedent in other semiconductor markets. 

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Micron Technology daily chart, December 22, 2023. Source: CAPEX.com WebTrader.       

Yesterday, the gross domestic product data was also released, which increased at an annualized rate of 4.9% in the last quarter, revised downwards compared to the 5.2% previously reported, but still the highest growth since the fourth quarter of 2021.

However, one of the greatest interests will be the Core Personal Consumption Expenditure Price Index, the Fed's favorite inflation measure; released today which could be definitive data showing that inflation has slowed sufficiently and confirm that the Federal Reserve has begun to make its monetary policy more flexible.

Key Takeaways

  • US Stocks and Indices up including the NASDAQ 100, S&P 500, and the Dow Jones.
  • Micron Technology followed the upward momentum skyrocketing 7% after quarterly revenue forecasts came in above expectations.
  • GDP data has risen and remains at its highest level of growth since the fourth quarter of 2021.
  • US Core Personal Consumption Expenditure Price Index out today. Investors await data to confirm the Fed’s stance.

 

Sources: Bloomberg, Reuters 

 

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Miguel A. Rodriguez
Miguel A. Rodriguez
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Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.