Chip bloodbath reversed overnight by blockbuster Micron earnings — momentum bounce on AI stocks
Chip stocks just went through a massive wipeout, driving the market sharply lower. But overnight, Micron reported explosive earnings that are reigniting the entire AI sector and futures are pointing to a sharp rebound at the open.
Idea
Earlier this week, a global chip sell-off erased massive value from the market, pushing the Nasdaq down 2.4% and spooking investors. However, Micron just reported earnings that blew past expectations, sending its stock up over 16% pre-market and sparking a massive rally in S&P futures. This combination of washed-out sentiment followed by a definitive fundamental catalyst creates a classic relief rally setup. Traders who were forced to sell yesterday are now facing a gap-up open and potential FOMO, providing strong upward momentum for the chip stocks that were hit the hardest.
What happened since
| Symbol | Dir | T+1 | T+5 | T+20 |
|---|---|---|---|---|
| NVDA | LONG | -1.64% ✗ | +2.22% ✓ | — |
Price change since publication · updated Jul 12