Market Rebounds Amid Cooling Inflation; Micron's Earnings Boost Tech Stocks

U.S. stock markets experienced a rebound on Thursday morning, driven by a cooler-than-expected consumer inflation report. This development led to a decline in bond yields and provided a boost to equities, particularly in the technology sector.

Micron Technology reported first-quarter fiscal 2026 revenue of $13.64 billion, surpassing analyst expectations of $12.83 billion. The company's adjusted earnings per share stood at $4.78, exceeding the anticipated $3.95. Following the announcement, Micron's stock surged 8% in after-hours trading, reaching $243.74. This positive performance also lifted shares of other data center-related companies, including Sandisk, Seagate, and Western Digital.

In the artificial intelligence (AI) sector, OpenAI is reportedly seeking to raise tens of billions of dollars at a valuation of approximately $750 billion, despite striking deals with partners at a $500 billion valuation. This ambitious fundraising effort underscores the growing interest and investment in AI technologies.

Tesla's recent market performance has been bolstered by advancements in self-driving technology and robotics, rather than its traditional automotive business. This shift has also benefited companies like Waymo, which have seen increased investment in autonomous vehicle technologies.

ServiceNow completed a 5-for-1 stock split but has faced challenges since a recent downgrade by KeyBanc analysts. The downgrade cited potential threats from AI to software-as-a-service (SaaS) companies, leading to a decline in ServiceNow's stock price.

Homebuilder Lennar was downgraded to a sell rating by Bank of America, with analysts noting that home prices have returned to 2019 levels. This suggests that inflation in the housing market is under control, although it is not included in the Consumer Price Index (CPI). The downgrade also highlighted deteriorating profit margins in the homebuilding sector.

Jefferies upgraded GE Vernova to a buy rating, raising the price target to $815 from $736. Despite this positive outlook, the stock has faced resistance in the $700 range, indicating challenges in sustaining higher price levels.

Citi analysts upgraded Sherwin-Williams to a buy rating, anticipating a better performance in 2026. They adjusted the price target to $390, down by $2. This upgrade suggests optimism about the company's future prospects.

Morgan Stanley downgraded PayPal to a sell rating, predicting sluggish growth ahead. The analysts reduced the price target to $51 from $74, indicating concerns about the company's future performance in the fintech sector.

Investors are also anticipating earnings reports from Nike, with expectations of $0.38 per share on $12.22 billion in revenue. The company's performance will be closely watched for insights into consumer spending trends and the retail sector's health.