U.S. stock futures rose Thursday morning. A blowout quarter from Micron Technology (Nasdaq: MU) lifted the entire semiconductor complex and helped offset nerves about a hot inflation print landing before the open.

Nasdaq 100 futures gained about 2%, leading the major averages. S&P 500 futures rose roughly 0.7%, while futures tied to the Dow Jones Industrial Average added about 140 points, or 0.3%.

The catalyst was Micron. The memory-chip maker reported results late Wednesday that crushed Wall Street estimates, and its shares jumped more than 16% in premarket trading. The rally spread across the sector: Qualcomm climbed about 12% after flagging billions in new revenue, and other chip names followed.

Micron’s record quarter

Micron posted revenue of $41.46 billion for its fiscal third quarter, which ended May 28, 2026, according to the company’s filing with the Securities and Exchange Commission. That is up from $9.30 billion in the same period a year earlier. GAAP net income came in at $28.24 billion, or $24.67 per diluted share. Analysts surveyed by Dow Jones had expected roughly $19.72 in earnings per share on about $34.38 billion in revenue.

The numbers reflect surging demand and pricing for high-bandwidth memory (HBM), the chips that feed AI data centers. Micron said it has effectively sold out its HBM supply and pointed to multi-year customer agreements as a source of more predictable earnings.

“Micron’s record fiscal Q3 financial results and even stronger outlook for Q4 reflect the strategic value of memory in the AI era,” said Sanjay Mehrotra, the company’s chairman, president and chief executive, in the release.

Guidance was the bigger surprise. Micron projected fiscal fourth-quarter revenue of about $50.0 billion, give or take $1.0 billion, with diluted earnings per share of roughly $30.73 on a GAAP basis. The board also declared a quarterly dividend of $0.15 per share. The report served as a fresh data point for investors trying to size up demand across the broader AI chip trade, where a handful of suppliers now drive much of the market’s direction.

The inflation test ahead of the open

The mood could shift quickly at 8:30 a.m. Eastern time. That is when the Bureau of Economic Analysis releases the Personal Consumption Expenditures (PCE) price index for May, the central bank’s preferred measure of inflation.

Economists polled by Dow Jones expect the headline PCE index to rise 0.5% on the month, up from a 0.4% gain in April. A reading at or above that level would reinforce a hawkish shift at the Fed, which surprised markets last week by penciling in rate hikes rather than cuts for the rest of 2026.

That pivot followed a run-up in energy prices after the U.S.-Iran conflict that began in late February. In its latest set of projections, the Fed lifted its year-end PCE inflation forecast to 3.6%, well above its 2% target. Traders have since moved to price in a meaningful chance of a rate increase as soon as September.

The bond market reflects the tension. The yield on the 10-year Treasury note has hovered near 4.45%, toward the upper end of the range that has held for much of the past year. A hot PCE print could push yields higher and pressure the same high-growth tech names now leading futures.

What to watch for the open

  • PCE at 8:30 a.m. ET. A headline gain of 0.5% or hotter would validate the Fed’s hawkish turn and could cap the early rally. A softer number would do the opposite.
  • Chip stocks. Watch whether Micron’s strength holds through the open and spreads to peers, or whether profit-taking sets in after the premarket pop.
  • Treasury yields. The 10-year near 4.45% is the level to watch. A move higher would weigh most on the rate-sensitive megacaps that dominate the index.
  • Index concentration. With AI names driving the tape again, the gap between the headline averages and the average stock is worth tracking. Some investors are looking at funds built to sidestep the largest tech holdings to manage that risk.

The setup leaves Wall Street with a familiar tug-of-war: an AI-driven earnings story strong enough to lift the whole market, against an inflation backdrop that keeps the Fed leaning toward tighter policy. The first read on which force wins comes at 8:30 a.m.