Key Takeaways
- Semiconductor stocks staged a recovery Wednesday following Tuesday’s sharp decline in tech shares
- Micron Technology gained ground as traders anticipated its fiscal third-quarter earnings release
- Qualcomm shares climbed on news of potential chip supply agreement with ByteDance
- Cerebras Systems tumbled 11% as investors worried about contracting profit margins despite revenue growth
- FedEx shares slid more than 6% following disappointing earnings guidance for fiscal 2026
U.S. equity markets opened Wednesday, June 24, with a tentative recovery attempt following Tuesday’s technology sector selloff that rattled investor confidence.
Nasdaq 100 index futures gained 0.5% during early morning hours, signaling renewed buying interest in artificial intelligence-focused stocks that experienced significant declines the previous session.
Technology Sector Stages Partial Recovery
Micron Technology shares advanced 3.7% during premarket hours as market participants awaited the company’s fiscal third-quarter financial results scheduled for release after Wednesday’s closing bell. These earnings figures are anticipated to provide crucial insights into sustained demand from artificial intelligence infrastructure.
Qualcomm stock increased 2.3% following a Reuters report indicating ongoing negotiations to provide customized semiconductor chips to ByteDance, TikTok’s parent organization. The chipmaker declined to comment when contacted about the potential partnership.
Advanced Micro Devices shares climbed 1.3%, while Intel stock rose 1.5%, and Super Micro Computer added 1.8% as part of the broader artificial intelligence sector rebound.
KB Home stock jumped 4% after the residential construction company delivered second-quarter revenue figures exceeding Wall Street expectations. The homebuilder maintained its full-year projections aligned with analyst forecasts, noting that 73% of net orders originated from its custom-build program.
ICON, a pharmaceutical contract research organization, surged 6% following first-quarter results that surpassed analyst estimates. The company reported adjusted earnings of $2.50 per share, revenue totaling $2.03 billion, and a project backlog reaching $22.7 billion.
Cerebras and FedEx Face Selling Pressure
Cerebras Systems stock declined approximately 11% even after delivering impressive first-quarter financial performance. The AI chip company reported revenue growth of 94% compared to the prior-year period, reaching $193.4 million, while posting a smaller-than-anticipated loss per share.
Market participants reacted negatively to management’s forecast calling for second-quarter gross margins between 36% and 38%, representing a significant decline from the 47% margin achieved in the first quarter. This margin deterioration overshadowed announcements of a major contract with OpenAI valued above $20 billion and a strategic collaboration with AWS.
Cerebras provided full-year revenue guidance ranging from $855 million to $865 million, representing approximately 69% growth at the midpoint of the range.
FedEx shares fell more than 6% despite fourth-quarter results that exceeded certain expectations. The logistics giant reported revenue growth of 13% year-over-year to $25 billion, with adjusted earnings of $6.31 per share beating analyst projections.
The stock decline stemmed from disappointing forward guidance. FedEx projected fiscal 2026 earnings per share between $16.90 and $18.10, with the midpoint trailing consensus analyst estimates.
These results marked the company’s first quarterly report following the completion of its freight division spin-off earlier in June.
Wendy’s stock skyrocketed 26% after social media activity on Reddit’s WallStreetBets forum encouraged retail investors to purchase shares of the quick-service restaurant chain. This price movement mirrors previous episodes of coordinated retail investor buying activity.
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