AI memory demand is so strong it is causing shortages, while the Fed turns hawkish. Here is what to watch tonight.
US markets closed broadly lower on Wednesday. The S&P 500 fell 1.21% to 7,420, the Nasdaq lost 1.34%, and the Dow dropped 0.98%.
The trigger was the Fed. Rates were held at 3.5%-3.75%, but nine of 18 officials now see a hike this year. Bond yields jumped in response.
The main story came from memory chips. Micron (MU) hit a record this week on the shortage of memory for AI.
On the other side, Apple (AAPL) CEO Tim Cook warned that memory costs are rising sharply and squeezing margins. One theme, two very different impacts.
Three stocks capture tonight's theme. All are available on Gotrade.
| Stock | Movement | What to Watch |
|---|---|---|
| Micron (MU) | Near record | Prime beneficiary of the AI memory shortage. HBM is sold out for 2026. The June 24 report is the next catalyst. |
| Apple (AAPL) | Pressured | Cook flagged rising memory costs. Watch the read-through to margins and guidance. |
| S&P 500 ETF (SPY) | -1.21% | Broad-market proxy. The Fed is hawkish and odds of an October hike are rising. Watch the macro pressure. |
Markets are still digesting the Fed's hawkish tone. Money markets now price a full hike by October. The 2-year Treasury yield rose 16 bps to 4.22%. This pressure is the main catalyst for the broad market tonight.
Accenture (ACN) reported revenue of around $18.74B to $18.80B, up about 6% YoY, with EPS of $3.71 to $3.72. The numbers were in line with expectations, but the stock remained under pressure as investors stayed cautious on IT budget cuts and the impact of higher rates on consulting demand, including AI.
Kroger (KR) reported revenue of around $45.52B to $45.66B, up slightly by 0.9% YoY, with EPS of $1.59, up 6.7% YoY. The result shows consumer staples remain relatively defensive, supported by solid e-commerce performance and stable demand for daily essentials..
What does it mean? ACN remains sensitive to rotation out of tech, while KR looks more stable because of its defensive business model in a tougher macro setup.
Micron to release their earnings reports on June 24. Management says demand for DRAM and NAND far exceeds supply. The market's reaction to this shortage could set the direction for memory-chip stocks into the print.
US futures lean lower after Wednesday's selloff. Technology and semiconductors are the main focus.
Beyond the watchlist, Nvidia (NVDA) is riding the wave of analyst price-target hikes across the chip sector.
Bond yields are the dominant driver. The 2-year at 4.22% pressures risk assets, and the market sees a chance of an October hike. Oil slipped on US-Iran deal expectations and the IEA's 2027 surplus outlook.
Tonight is about contrast. AI demand is strong enough to cause chip shortages and price hikes, proof the theme is alive. But the Fed's hawkish tone is a reminder that funding costs can rise.
If you hold chip or tech names, watch how the market reacts to bond yields before adding or trimming.
Want to track Micron, Apple, and the broad market live? Check watchlist on Gotrade now!
Disclaimer
Gotrade is the trading name of Gotrade Securities Inc., which is registered with and supervised by the Labuan Financial Services Authority (LFSA). This content is for educational purposes only and does not constitute financial advice. Always do your own research (DYOR) before investing.
