Market Wrap: Markets Rally on Strong Micron Data (25.06.2026)
On June 25, 2026, the markets experienced a rally following the release of strong quarterly data from Micron Technology, which significantly exceeded expectations. This report was particularly crucial as it came after a sell-off in the semiconductor sector, raising concerns about the sustainability of the bull market driven by AI-related companies.
Micron's Impressive Performance
Micron reported adjusted earnings per share (EPS) of $25.11, surpassing the anticipated $20.20 and more than doubling its EPS from three months prior. The company's revenue also showed remarkable growth, reaching $23.9 billion in Q2 and $41.5 billion in Q3. This positive performance not only boosted Micron's stock by nearly 19% in pre-market trading but also reinforced the narrative of profitability in the AI sector, positively impacting the broader market.
Sector Gains
In the Euro Stoxx 50, companies like Infineon Technologies and ASML Holding saw significant gains, with Infineon up by 5.6% and ASML by 4.6%. Infineon specializes in semiconductors, while ASML is a leader in photolithography machines essential for chip manufacturing. Their strong performances reflect their critical roles in the European technology sector.
Market Indices Performance
The positive sentiment from the tech sector led to gains across major European stock indices, with the Euro Stoxx 50 rising by 0.8%, marking an 18.5% increase for the year. Other indices, including the German DAX, French CAC 40, British FTSE 100, and Polish WIG20, also showed upward trends.
Geopolitical Context
Geopolitical issues have recently taken a backseat, with ongoing negotiations expected to conclude by August 21. However, past experiences suggest that deadlines may be flexible, and any breakthrough could lead to market volatility. The situation in the Strait of Hormuz remains a focal point for traders.
Commodity Trends
In the commodities market, key energy prices have been declining, with Brent crude oil falling to $73 per barrel and WTI crude oil below $70.
Macroeconomic Data Insights
The release of the PCE inflation data from the United States showed no major surprises, with the headline PCE at 4.1% and core PCE at 3.4%. A slight upward revision of Q1 GDP growth from 1.6% to 2.1% and a 0.7% increase in income and consumer spending in May were noted as positive developments.
Currency Market Overview
Despite high expectations for the US inflation report, the results did not lead to significant changes in interest rate hike expectations. The EUR/USD pair remained stable around 1.135 after a recent decline.