Micron Fuels Global Tech Rally as Markets Look to PCE Data

The positive sentiment rippled through international markets, with South Korea’s KOSPI index jumping more than 5% as investors reacted to the news and a pending $29 billion stock offering from SK Hynix. This renewed enthusiasm for tech arrives alongside a significant pullback in energy costs, with Brent crude dipping below $73 per barrel, returning to levels last seen before the regional conflict in the Gulf began in late February.

Despite the decline in oil prices, Federal Reserve policy remains a primary point of friction. While long-dated Treasury yields softened following disappointing U.S. housing data, two-year yields remain elevated, roughly 75 basis points above pre-war levels. Markets are now bracing for the May U.S. PCE report, with core annual inflation projected to rise to 3.4%. Analysts are weighing whether the AI-driven spending boom and rising chip valuations might inadvertently sustain inflationary pressures, even as cheaper energy costs potentially stimulate broader economic activity. The day ahead includes additional commentary from Fed officials Michelle Bowman, John Williams, and Austan Goolsbee, alongside key data on durable goods and weekly jobless claims.