Micron Technology Faces Pressure as Oil Hits $100 and GDP Cuts to 0.7%
Crude oil surged toward $100 per barrel on Strait of Hormuz disruptions and US Q4 GDP was revised down to 0.7% from 1.4%. The S&P 500 fell 0.61% and Nasdaq dropped 0.93%, pressuring semiconductor stocks such as Micron Technology due to elevated inflation and higher bond yields.
1. Market Reaction
Crude oil surged toward $100 per barrel after renewed disruptions in the Strait of Hormuz, while US Q4 GDP was revised down to 0.7% from 1.4%. The S&P 500 fell 0.61% and the Nasdaq dropped 0.93%, as investors weighed energy market risks and softer economic growth.
2. Inflation and Bond Yields Impact
Inflation fears intensified as the core PCE price index rose 3.1% year-over-year, the highest in 1.75 years, and the 10-year Treasury yield climbed to around 4.29%. Elevated yields and consumer sentiment slipping to a three-month low have increased financing costs for growth stocks.
3. Micron Technology Outlook
Semiconductor stocks such as Micron Technology face headwinds from rising energy and borrowing costs, which could squeeze operating margins. Slower GDP growth may also damp capital spending on memory products, posing risks to near-term revenue momentum.