Micron Technology concerns put pressure on technology companies

Today's session is marked by steep declines in the Nasdaq Index (US100), which is awaiting tomorrow's US CPI inflation reading. There was an upward bounce on 10-year yields and weak news from the largest US manufacturer of memory cards, disks, etc., Micron Technology (MU.US), which stressed that sales results could reach the lower end of previously stated forecasts. The company expects the business environment to deteriorate significantly in Q4 2022 and Q1 2023. Capital expenditures are expected to be significantly reduced in fiscal 2023 versus 2022. 

The company expects revenues to be below or near the low end of the $6.8 billion-$7.6 billion range.

The company added that it intends to take advantage of government subsidies, particularly the CHIPS and Science Act, to invest close to $40 billion by the end of the decade to expand production capacity. 

Micron Technology (MU.US); (-5.2%) stock chart, D1 interval. Source: xStation 5