Gold settled below $4,000 for the first time since November.
The safety trade is unwinding.
Gold settled at $3,990.30 Wednesday, slipping below the $4,000 mark for the first time since late November. It had traded above $4,500 as recently as last week. The drop accelerated after Micron's earnings sent risk assets sharply higher in after-hours trading, pulling capital out of the hedges that absorbed it during the semiconductor rout.
Oil reinforced the move.
Oil fell hard. Brent crude dropped 4.3% to $73.74. WTI settled at $70.34. Both sit at the lowest levels since before the Iran conflict began earlier this year. The Iran deal roadmap continues to ease supply expectations, and weaker Chinese demand has compounded the pressure. Airlines and transportation stocks benefit from cheaper fuel. Energy producers are absorbing the hit.
Micron crushed every estimate on Wall Street.
Micron reported fiscal Q3 revenue of $41.46 billion, well above the $35 billion consensus. Earnings came in near $25 per share against estimates around $20. Gross margin hit a company-record 84.9%. The guidance was the number that moved the stock: $50 billion in revenue next quarter, plus or minus $1 billion, versus the $42.9 billion the Street expected. Shares jumped roughly 15% after hours.
Two days ago, trading on Korea's semiconductor index was halted after a 10% plunge. Now the company at the center of that selloff has told the market the memory supply crunch extends past 2027. The reversal in sentiment is sharp.
KB Home quietly posted the session's biggest gain.
KB Home rallied 16.6% after reporting revenue that beat estimates. Homebuilders have drawn consistent buying since the rotation out of tech accelerated last week. New home sales data Wednesday showed a 7.3% monthly decline, but the market looked past it and kept bidding the builders higher.
Wednesday's session steadied after Tuesday's rout.
The S&P 500 settled at 7,358, roughly flat on the day. The Dow gained 182 points to 51,849. The Nasdaq edged down 0.43% to 25,477. But Nasdaq futures are up roughly 2% this morning on Micron's results. The 10-year yield sits below 4.5%. The VIX is at 18.63.
May PCE is the morning catalyst.
Headline PCE is expected to rise to 4.1% year over year from 3.8%. Core is expected near 3.3%. A reading at or below that level would undercut Bank of America's call for three rate hikes this year and could ease pressure on the growth names that have been selling off. The number prints at 8:30 AM Eastern.
Qualcomm moved after hours on reports it broke into the data center chip market, adding another name to the custom-silicon race alongside OpenAI's Broadcom-built Jalapeno chip announced this week.
PCE lands at 8:30.
