US markets open in green on decline in jobless claims, softer inflation; Micron surges 18%

The US markets opened in green with half a percentage gains across the key benchmark indices. The Dow Jones headed close to record high levels by rising over 300 points or 0.6%, followed by the S&P500 at 0.5%, the tech heavy NASDAQ 100 index soared 0.5%.

Micron Technology shares rallied over 18% on Thursday after the company posted record earnings for the preceding quarter. The company’s revenue jumped multifold to $41 billion, as compared to $9 billion in the same period last year. Additionally, the company guided for $50 billion in revenue for the coming quarter ending August 2026.

Qualcomm shares will also remain in focus after the company said its non-handset revenue will double from here in the coming three years.

The preferred metric tracked by the Federal Reserve to gauge core inflation in the economy hit a more than two-year high. The headline PCE inflation for May came in at 4.1% vs 38% in the previous month, accelerating at the highest level since April 2023. The core PCE index rose 0.4% M-o-M, less than the market expectations of 0.5% increase, which cooled off the market concerns.

The core PCE index, which excludes food and energy, increased 0.3%, matching the same pace as last month. While the core PCE inflation rose 3.4% from 3.3%, reaching the highest level since October 2023.

The inflation print remains significantly higher than the long-term inflation target of the Federal Reserve at 2%. However, investor sentiment remains upbeat on the AI-led boom in the global stock markets.

On the other hand, the jobless claims fall more than expected, indicating a strengthened economy. The number of people claiming jobless benefits declined by 12000 to 2,15,000 as compared to the market expectations of 2,25,000.

The crude oil prices comfortably trade below the war levels on Thursday as the traffic in the Strait of Hormuz regains normalcy. The Brent crude oil futures traded at $73.8 per barrel, and the WTI crude oil prices hovered near $70 per barrel.