5 Things to Know Before Thursday’s Market Open

As markets brace for the release of the personal consumption expenditures price index—the Federal Reserve’s preferred inflation gauge—all eyes are on the economic data that could significantly shape the central bank’s next moves. The report, due out at 8:30 a.m. ET, carries even greater weight following last week’s interest rate decision by the Fed. Stock futures are showing a positive trajectory this morning, aiming to build on recent momentum after the S&P 500 experienced a modestly negative session yesterday.

Here are five critical developments investors need to monitor as the trading day unfolds:

Micron Technology shares are experiencing a significant pre-market rally, soaring over 17% following a stellar earnings report that significantly surpassed analyst expectations. The memory giant announced its revenue more than quadrupled in the fiscal third quarter, a performance that comfortably exceeded Wall Street’s projections. Furthermore, the company issued a robust forecast for the current quarter, anticipating profits to outpace earlier estimates.

Several key takeaways from Micron’s report underscore the strength of the semiconductor sector:

• Micron’s gross margin reached an impressive 84.9%, establishing it as a leader in profitability among major U.S. technology companies. This figure surpasses Meta’s 81.9% and Nvidia’s 75%, highlighting Micron’s operational efficiency and pricing power in the current market environment.
• The substantial pre-market gain is poised to propel Micron’s stock to new all-time highs today. Over the past 12 months, the company’s shares have demonstrated remarkable performance, with a cumulative gain exceeding 700%, reflecting the intense demand and strategic importance of memory chips in the evolving tech landscape.
• The positive sentiment surrounding Micron is creating a ripple effect across the broader semiconductor industry, with other chip manufacturers also seeing gains. This uplift comes after a period of sector-wide selling pressure earlier in the week. The tech-heavy Nasdaq Composite, which has faced headwinds with three consecutive down days, could find renewed support from these developments.
• In a related positive development, Qualcomm shares are up 10% in extended trading. The company announced it nearly doubled its projected revenue from its non-handset division for fiscal year 2029, signaling a significant diversification and growth strategy beyond traditional mobile markets. This expansion into areas like data center CPUs and automotive technology indicates a proactive approach to capturing emerging market opportunities.

President Donald Trump has unexpectedly postponed the signing of a bipartisan affordable housing bill, retracting his commitment mere hours before the scheduled ceremony. In a social media statement, the President indicated that the bill would not be signed until Congress passes the SAVE America Act, a controversial voter identification measure. This abrupt change in plans introduces uncertainty into the legislative process and highlights the complex interplay between different policy priorities.

Following this announcement, the President engaged in a lunch meeting with Senate Republicans. While details of the discussion remain private, one attendee indicated that the housing bill was not a primary topic of conversation. The President has a statutory period of 10 days to either assent to or veto the legislation, which is designed to address the pressing issue of housing affordability and supply. The outcome of this decision will have significant implications for the real estate market and broader economic policy.

Oil prices have notably retreated, shedding the gains that were attributed to wartime tensions, as maritime traffic through the critical Strait of Hormuz resumes. Trade-tracking intelligence indicates that a substantial volume of crude oil, estimated at approximately 35 million barrels across more than 20 tankers, has successfully transited the strait since a de-escalation agreement was reached between the United States and Iran.

This reopening of a vital global shipping lane is significantly easing supply concerns that had previously fueled price increases. Daily oil shipments through the strait have recovered to an estimated 4.8 million barrels per day, although this figure remains below the pre-conflict export levels of 15 million barrels per day. The Energy Secretary has affirmed that Iran’s ability to unilaterally disrupt traffic in the Strait of Hormuz has been diminished, partly due to enhanced U.S. naval escorts for commercial vessels. This strategic shift in regional dynamics is a key factor contributing to the stabilization of global energy markets.

Toyota is making significant inroads in the U.S. automotive market, outpacing General Motors in terms of sales growth projections for the first half of the year. A recent forecast from Cox Automotive anticipates that Toyota’s U.S. sales will rise by nearly 1%, while General Motors’ sales are expected to decline by over 7% during the same period. This divergence in performance highlights contrasting strategic approaches within the industry.

Toyota’s success can be largely attributed to its sustained leadership in the hybrid vehicle segment, a market where the company has consistently invested and innovated. This focus on hybrid technology is resonating with consumers seeking fuel-efficient alternatives. Conversely, General Motors’ strategic bet on a full transition to all-electric vehicles, while forward-looking, appears to have underestimated the current market’s demand for hybrid solutions as a transitional technology. This approach has led to a slowdown in their overall sales trajectory, prompting analysts to express concern about their competitive positioning.

“GM may be looking over their shoulder,” noted Charlie Chesbrough of Cox Automotive. While he does not currently foresee Toyota surpassing GM in overall market share, he described the current trend as “concerning” for America’s largest automaker, underscoring the need for strategic adjustments to regain momentum.

Wendy’s has emerged as the latest target for retail investors, experiencing a dramatic surge of 25% in Wednesday’s trading session, signaling a renewed interest driven by the “meme stock” phenomenon. Data analysis reveals that Wendy’s was among the most actively discussed stocks on online trading forums, particularly leading up to and during its significant price appreciation. The substantial net inflows from small-scale traders observed yesterday far exceeded recent averages for the stock.

This recent market activity closely mirrors the retail-driven short squeezes that characterized the 2021 meme stock craze. The upward momentum has continued into pre-market trading this morning, with Wendy’s shares up an additional 7%, indicating that retail investor enthusiasm for the fast-food chain remains robust and potentially indicative of further price action.

— Contributing to this report were CNBC’s Lisa Kailai Han, Kif Leswing, Jordan Novet, Sean Conlon, Justin Papp, Angela D. Greiling Keane, Spencer Kimball, Michael Wayland, Yun Li, and Tanaya Macheel. Luke Fountain assisted in production, and Josephine Rozzelle edited this edition.