U.S. stock futures rise following upbeat Micron earnings

Investing.com-- U.S. stock index futures rose on Wednesday evening as bumper earnings from memory chip major Micron helped reinforce the artificial intelligence trade and spurred gains in broader tech stocks.

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But caution over soaring yields and key upcoming labor market data stifled bigger gains, with Wall Street also logging small declines in September.

S&P 500 Futures rose 0.36% to 7,743.25 points by 19:49 ET (23:49 GMT). Nasdaq 100 Futures rose 0.4% to 30,822.50 points, while Dow Jones Futures rose 0.3% to 51,430.0 points.

Micron Technology Inc (NASDAQ:MU) posted stronger-than-expected fiscal fourth quarter earnings, with its current-quarter guidance also surpassing expectations.

The company reported adjusted earnings of $33.42 per share, above expectations of $31.16. Micron also guided current quarter EPS at $38.15, plus or minus $1.00, above street estimates of $36.02.

Shares of the memory chip giant rose as much as 1% in aftermarket trade, but pared gains to trade flat after its earnings call.

Micron flagged slightly softer gross margins in the current quarter, and also forecast higher operating expenses for fiscal 2027.

Some doubts over the company's plans for more shareholder returns also weighed, with management providing few direct details, but stating that Micron will increase its shareholder returns in December.

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Still, Micron's blowout earnings and guidance helped reinforce confidence in the AI trade, specifically that AI-fueled demand will continue to underpin chipmaking and tech valuations in the coming quarters.

Fears of slowing AI demand, especially amid growing concerns over the safety of the technology, had rattled tech stocks in September. Several major frontier labs, led by Anthropic, called for a slowdown in AI development.

Wall Street indexes fell on Wednesday as a sustained rout in bond markets pushed Treasury yields higher and kept investors on edge.

The S&P 500 fell 0.25%, the Dow Jones Industrial Average fell 0.86%, and the NASDAQ Composite added 0.2%. The S&P and the Dow fell 0.4% and 4.3% in September, respectively, while the Nasdaq added 1.9%.

Softer-than-expected PCE price index data for August, released on Wednesday, did little to stem an ongoing surge in Treasury yields. The 10-year benchmark hit a fresh 19-year high on Wednesday, and remained well above 5.2%.

Yields rose even as markets questioned whether the Federal Reserve had enough headroom to aggressively raise interest rates in the coming months.

Nonfarm payrolls data for September, due on Friday, is expected to provide more cues on interest rates.

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