US OPEN: Indices rebound in anticipation of Micron's results

US stock markets are attempting to return to growth today after a brutal start to the week, during which an astronomical $1.3 trillion evaporated from the Nasdaq 100 index's capitalization. Today's opening is marked by anticipation of the quarterly report from Micron Technology, a company that in recent weeks has taken the crown as Wall Street's most traded asset, surpassing Nvidia itself. The RAM giant's results will be a key test for the health of the entire big bet on artificial intelligence. Additional fuel for volatility includes historical shuffles in the Dow Jones index and nervousness ahead of tomorrow's PCE inflation reading.

Market situation and key macro events

Global sentiment is trying to stabilize, although investors have been through a period of absolute "rollercoaster ride." Fear in the markets has subsided slightly, as illustrated by the VIX volatility index, which is retreating to the 19.21 point level after brushing against the psychological barrier of 20 points yesterday, and having been traded above that level mid-month.

Traders at Goldman Sachs warn, however, that market liquidity is currently shallow, which could drastically exacerbate price movements in both directions in the upcoming sessions.

On the commodities market, a downward streak continues for oil, as the WTI benchmark is brushing against the $70 per barrel level and only needs to close the initial gap related to market openings after the US began airstrikes on Iran at the end of February to fully offset the war's impact on this commodity. On the other hand, hawkish sentiments prevail in the markets, as seen by the strong pullback of EURUSD below 1.14.

In the macroeconomic background, investors are digesting the first Fed meeting under Kevin Warsh's leadership and awaiting Thursday's PCE reading, which according to Bloomberg Economics forecasts could prove hawkish.

How are futures contracts and individual sectors behaving?

• US100 (Nasdaq 100): After an initial attempt to rebound, we are observing a 0.2% decline in the first minutes of trading. Nevertheless, the technology sector is trying to prove that the June correction is merely a healthy rest in the uptrend (the index is still about 28% higher than at the end of March).
• US500 (S&P 500): The contract for the key index remains at yesterday's closing level, although it had gained as much as 0.2% earlier. The broader market is moving cautiously, balancing technological optimism with warning signals coming from the traditional economy.
• US30 (Dow Jones): Currently, the contract is losing 0.15%, however, attention is focused on it due to a rare, fundamental change in the index structure.
• US2000 (Russell 2000): It is recording a 0.2% decline, consolidating after recent attempts to rotate capital toward smaller companies.

Technical Analysis: US100 (Nasdaq 100)

After shedding $1.3 trillion in ballast in just two days, the technology index US100 has found itself at a very interesting potential turning point. Yesterday's capitulation brought the index to the area of local supports, where demand made an attempt at defense.

In intraday terms, the key resistance for the bulls remains the area of yesterday's slump. A 0.5% rebound earlier indicated potential for recovery, but in the first minutes of trading, we have a drop below the important support of 29800 points. Nevertheless, the support in the form of the 50.0 retracement of the last uptrend wave is being maintained, and slightly lower is the key retracement for the upward impulse, i.e., 61.8.

What is worrying is that Goldman Sachs warns of a similar bubble to the one that occurred during the dot-com frenzy. On the other hand, current movements are not yet large enough to indicate a complete capitulation of buyers. It seems, however, that today everything is in Micron's hands. Just as Nvidia once saved the market from collapse, now it may lie in the hands of the memory manufacturer's results.

Key information about companies

• Micron Technology (MU.US). The company gained as much as 4% in the pre-market and is currently down 1% ahead of today's results. It is worth noting that Micron is currently the most traded company on Wall Street, where turnover has exceeded 70 billion dollars. The market is speculating heavily ahead of the financial report (publication after the close of the session), counting on a powerful hit from the demand for AI memory chips in Asia.
• Alphabet (GOOGL.US). Google's parent company is officially joining the elite Dow Jones Industrial Average (US30) group, replacing a long-time telecommunications giant. Alphabet is gaining about 0.8%.
• Verizon (VZ.US). The share price is falling by 1% in reaction to the decision to remove the company from the Dow Jones index.
• Wendy’s (WEN.US). An absolute price jump at the opening of up to 24%. The burger chain has become a target for mass speculative retail capital from the r/wallstreetbets and Stocktwits forums.
• FuelCell Energy (FCEL.US). The company skyrocketed after announcing an agreement with Fit Energy to supply 380 megawatts of clean energy for the needs of data centers supporting artificial intelligence. However, the gains were reduced to 5% in the first minutes.
• FedEx (FDX.US). Declines of about 1.3% after the first financial report since the separation of the freight unit. Investors are jumping ship due to weaker forecasts, inflationary pressure, and fears about global trade.
• Cerebras Systems (CBRS.US). A recent debutant from the semiconductor sector painfully collided with Wall Street expectations and is losing 14.5%. The annual sales forecast turned out to be too conservative for red-hot AI investors.
• Hertz (HTZ.US). A catastrophic morning for the car rental company after presenting a weak operational update and announcing plans for a $100 million new share issuance. Shares are losing almost 1/4 of their value.
• Twilio (TWLO.US). Goldman Sachs reinstates a "Buy" rating with a market-high target price of $300, pointing to upcoming structural gains from the implementation of AI tools. Shares are gaining more than 3%.