AI Boom Pushes US Stock Futures Higher, Micron Jumps 8% Before Market Open

US stocks pre-market, S&P 500 futures up 0.4%, Nasdaq 100 futures up 0.6%.

Chip stocks continue to lead gains, with Micron Technology up over 8% pre-market, after a single day surge of 19% in the previous trading session, with market cap breaking the trillion-dollar mark. Western Digital, Seagate Technology up over 4%.

Commodities under pressure in tandem, Brent crude down 3.0% on the day, at $93.74/bbl; spot gold down 1.5%, at $4437.55/oz; spot silver's losses widened to 4.0%, at $73.73/oz. Trump stated that the US and Iran are negotiating extensions on ceasefire agreements and the reopening of the Strait of Hormuz.

Goldman Sachs strategists raised their full-year US stock target, expecting the S&P 500 to reach 8000 points this year. The previous target was 7600 points. Ben Snyder, head of the Goldman team, said that AI-driven profit growth momentum is strong enough to support higher valuations.

Vantage Global Prime analyst Hebe Chen summarizes the current market trends as "geopoltical risk cooling and AI trading heating up":

"The war premium is fading, but the AI premium is still accumulating."

The bond and currency markets also reflect a warming of risk appetite. The 10-year US Treasury yield fell 1 basis point to 4.47%, the US dollar weakened against the G10 currencies overall, and the yen hovered near 159 against the US dollar.