Micron Earnings Tonight as Trump Backs AI Data Center Push

Micron reports earnings tonight as Trump backs AI data centers. Bloom Energy jumps 10.8%, Tesla adds $30B in credit, Apple slips and US PCE lands at 6 PM IST.

TLDR

• President Trump reaffirmed his support for AI data centers after talks with top AI executives, and Bloom Energy jumped about 10.8% on Tuesday as analysts pointed to rising demand for on-site power at AI campuses.
• Micron reports fiscal Q4 results after the US close tonight, early Thursday in IST. Analysts expect revenue near $50.8 billion, and options traders are pricing a move of about 9% either way.
• US PCE inflation for August lands at 6:00 PM IST. The Cleveland Fed nowcast points to about 3.8% headline and 3.4% core.
• Tesla signed $30 billion of new bank credit it says it will not draw in 2026, while Apple fell 2.66% to $329.40 on a first sales estimate of about 6 million iPhone Duo foldables this year.
• Wall Street slipped for a second day as the US 10-year yield touched 5.29%. The S&P 500 closed at 7,670.84, down 0.16%.
• Asia was mixed. The Nikkei 225 rose 1.94% to 66,753.72 while KOSPI fell 0.48% to 6,838.04.

Market Regime

The market is caught between two forces right now. On one side, the AI buildout keeps getting fresh support: political backing from the White House, a $150 billion addition to Nvidia’s buyback, and real orders flowing to the companies that power data centers. On the other, US bond yields keep climbing. The 10-year touched 5.29% on Tuesday and the 30-year is at a 24-year high, which makes stocks look expensive next to bonds and is pulling the wider market lower.

Tonight tests both sides within a few hours. A hot PCE print at 6:00 PM IST would push yields higher and add pressure on the S&P 500. Micron’s results after the US close are the next big read on AI chip demand, and a strong outlook would support Nvidia and the chip group. Today is also the last trading day of Q3, so quarter-end flows can add noise to the moves.

Bullish Factors

• White House backing for AI: President Trump reaffirmed support for data centers after meeting AI executives, per Reuters.
• Real orders behind the power trade: Bloom Energy cited a $25 billion Brookfield financing, a large AEP order and 158,000 square feet of extra factory space in Fremont. Oracle also reaffirmed its 2.4 GW Project Jupiter commitment.
• Big buyers in Nvidia: Ark Invest bought 356,681 Nvidia shares on Tuesday, a day after Nvidia added $150 billion to its share buyback.
• China is growing again: the official manufacturing PMI rose to 50.1 in September, back above the 50 line that separates growth from contraction.
• Tesla funding secured: $30 billion of unused credit gives Tesla room for its heavy spending phase on robotaxis and robots.

Bearish Factors

• Bond yields at multi-year highs: the 10-year touched 5.29% and the 30-year is at its highest in 24 years.
• Banks are weak: the S&P 500 financials group is down 6.3% in September, on track for its worst month since March 2023.
• Apple lost ground: a cautious first estimate for the iPhone Duo dragged AAPL down 2.66%, making it the biggest drag on the Dow.
• Data center pushback: over 70% of Americans in recent polls do not want data centers built near them, and it has become a live issue before the midterm elections.
• Japan factory miss: August industrial output fell 1.7% against a forecast rise of 1.7%.

Asian Markets This Morning

Japan led the region. The Nikkei 225 rose 1.94% to 66,753.72, ending a two-day decline, even after August factory output came in well below forecast. SoftBank jumped 6.6% on reports that OpenAI is seeking to raise at least $30 billion at a $1.4 trillion valuation, and chip names like Sumco also rallied.

Korea went the other way. KOSPI opened 1.06% higher at 6,943.47 and touched 6,965.64 before foreign and institutional selling pushed it to a 0.48% loss at 6,838.04, its third straight down day. Samsung Electronics slipped while SK hynix held gains. Hong Kong’s Hang Seng rose 0.37% to 24,613.27 and the Shanghai Composite added 0.3% after the upbeat PMI.

Elsewhere, Australian CPI came in at 4.0% a year, a day after the RBA raised rates to 4.60%. US stock futures were up about 0.2% to 0.3% in the Asian session.

What Moved Wall Street Today

US stocks closed lower on Tuesday for a second straight day. The Dow fell 131.59 points, or 0.26%, to 51,349.92. The S&P 500 slipped 0.16% to 7,670.84 and the Nasdaq Composite dipped 0.09% to 26,797.54. All three finished off their lows.

Rising bond yields did most of the damage, and banks felt it most. Apple fell 2.66% after Counterpoint Research estimated sales of about 6 million iPhone Duo units this year, the first estimate for Apple’s foldable. Nvidia slipped 0.7%. Meta went the other way, rising 3.2%.

Bloom Energy rose about 10.8% after falling nearly 9% the day before. RBC kept its Outperform rating with a $335 target, and Jefferies raised its target to $264 while keeping a Hold.

After the bell, Tesla filed its $30 billion credit package with the SEC. Robinhood also announced plans for round-the-clock weekend trading on a selected list of US stocks and ETFs, pending regulatory review, along with perpetual futures for eligible US customers.

Assets in Focus

NVDA (Nvidia)

Nvidia slipped 0.7% on Tuesday, but the news flow around it stayed supportive. Ark Invest bought 356,681 shares, Nvidia added $150 billion to its buyback, and the White House repeated its support for data centers. Nvidia now trades at a lower forward earnings multiple than the S&P 500, according to FactSet. Micron’s results tonight are the next test for AI chip demand.

MU (Micron)

Micron reports fiscal Q4 after the US close, early Thursday IST. Analysts expect earnings of $31.45 a share, up from $3.03 a year ago, on revenue of about $50.8 billion, up from $11.3 billion. Gross margin is expected near 85.9%, up from 45.7%. For next quarter, analysts are looking for revenue around $56.6 billion. Options traders are pricing a move of about 9% after the report. MU is on the CoinDCX Global Futures trending list.

TSLA (Tesla)

Tesla signed three new credit lines worth $30 billion: a $20 billion three-year term loan led by Citi, plus $8 billion five-year and $2 billion one-year revolving lines led by Wells Fargo. Nothing is drawn and Tesla says it does not plan to borrow from them in 2026. The package replaces an older $5 billion line that was never used. Separately, Elon Musk said SpaceX (SPCX) and Tesla aim to jointly produce 200 GW of solar power a year. TSLA last traded at $352.84, down 1.29%.

AAPL (Apple)

Apple fell 2.66% to $329.40 after Counterpoint Research put the first number on its foldable iPhone Duo: about 6 million units this year. The stock was the biggest drag on the Dow on Tuesday.

Index Levels to Watch

• S&P 500 (7,670.84): 7,600 below and 7,750 above. A hot PCE print tests the lower level.
• Nasdaq Composite (26,797.54): 26,500 below and 27,000 above. The record close is 27,244.28 from September 22.
• Nikkei 225 (66,753.72): 65,500 below and 67,500 above.
• KOSPI (6,838.04): 6,800 below and 6,965 above, today’s intraday high.

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