Micron Joins 3% ETF Rebound as SpaceX Readies $1.8 Trillion IPO
MU•Micron’s shares rose in premarket trading as the iShares Semiconductor ETF climbed 3% following a 10% sector drop last Friday, driven by Bank of America’s Intel upgrade and easing oil prices. Traders anticipate portfolio rebalancing ahead of SpaceX’s record $1.8 trillion IPO fueling the chip recovery.
1. Chip Stocks Rebound Pre-open
U.S. futures markets opened higher, with the Dow up 378 points, the S&P 500 gaining 0.72%, and Nasdaq 100 futures ahead 1.2%. The iShares Semiconductor ETF jumped 3%, helping Micron recover premarket losses after the sector slumped 10% last Friday.
2. Bank of America Boosts Intel Rating
Bank of America raised Intel’s rating to buy from underperform, sending Intel shares up 4% before the open. The upgrade provided fresh momentum to semiconductor equities, underpinning broader chip sector strength.
3. SpaceX IPO Drives Portfolio Rebalancing
Speculation over SpaceX’s upcoming $1.8 trillion IPO has traders reallocating funds from existing chip holdings into cash reserves. This rotation theory suggests rebalancing activity is a key driver behind the sector’s temporary weakness and current rebound.
4. Oil Prices Ease Despite Geopolitical Tensions
West Texas Intermediate crude futures declined about 1% to trade near $89 a barrel, retreating from overnight highs even after U.S. forces conducted a second round of strikes on Iran. The oil pullback added to a more constructive opening for equities.
