AI Rebound Rally Gains Momentum

The AI trade has roared back to life overnight, with much stronger than expected earnings from Micron Technology helping the sector shrug off the recent sharp correction and igniting a rebound rally. Micron Technology posted much stronger than expected EPS ($25.11 v. Street $20.86) on high demand for memory chips, sending shares up 17.4% premarket.

Meanwhile, Gold has slipped below $4,000/oz and Crude Oil is trading below $70.00/bbl as war concerns continue to ease. Not all Commodities are falling back, however, with Gasoline and Copper attracting support near $2.90/gallon and $6.00/lb respectively.

The US Dollar remains well supported as investors sift through several key US economic reports this morning, which generally met or beat expectations and continue to indicate a robust economy. US Core PCE Inflation came in as expected at 3.4%, suggesting inflation may be stabilizing. US Durable Goods Orders fell 4.5%, in line with expectations and not worse than feared after the previous 8.0% increase. US Q1 GDP was revised slightly higher to 3.6% v. Street 3.5%, while US Weekly Initial Jobless Claims were better than expected at 215K v. Street 225K.

NASDAQ futures are up 2.2%, while Dow futures are up 0.1%. In Asia, the Nikkei gained 4.6%, South Korea’s KOSPI surged 5.4%, and the Hang Seng declined 1.4%. In Europe, the DAX is up 0.8% and the FTSE is up 0.7%.

Crude Oil is down 1.0%, Gasoline is up 0.6%, Gold is down 0.3%, Copper is up 1.3%, and Silver is down 1.6%.

The US 10-year Treasury Note yield has slipped toward 4.40%, while the US 30-year Treasury Note yield has dropped toward 4.85%. The US Dollar is rallying again today against Commodities and other Currencies, with the Euro down 0.2% and the Loonie down 0.1%.

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