{"id":63693,"date":"2026-06-24T16:38:14","date_gmt":"2026-06-24T20:38:14","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/micron-smashes-estimates-as-ai-demand-surges-u-s-banks-pass-fed-stress-tests\/63693\/"},"modified":"2026-06-24T16:38:14","modified_gmt":"2026-06-24T20:38:14","slug":"micron-smashes-estimates-as-ai-demand-surges-u-s-banks-pass-fed-stress-tests","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/micron-smashes-estimates-as-ai-demand-surges-u-s-banks-pass-fed-stress-tests\/63693\/","title":{"rendered":"Micron Smashes Estimates as AI Demand Surges; U.S. Banks Pass Fed Stress Tests"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Micron Technology (<a href=\"\/stock\/MU\">MU<\/a>)<\/strong> shares surged <strong>8%<\/strong> in after-hours trading after reporting <strong>Q3 revenue of $41.46 billion<\/strong>, crushing the <strong>$35.59 billion<\/strong> estimate, and issuing massive <strong>Q4 guidance of $50 billion<\/strong>.<\/li>\n<li>All <strong>32 large U.S. banks passed the Federal Reserve&#39;s annual stress test<\/strong>, proving they can withstand a severe recession and absorb over <strong>$700 billion<\/strong> in hypothetical losses.<\/li>\n<li><strong>JPMorgan Chase (<a href=\"\/stock\/JPM\">JPM<\/a>)<\/strong> announced a dividend hike to <strong>$1.65 per share<\/strong> and a new <strong>$50 billion share repurchase program<\/strong> following the stress test results.<\/li>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">Oil prices<\/a> plummeted<\/strong>, with <strong>Brent crude<\/strong> falling below <strong>$74<\/strong> and <strong>WTI<\/strong> dropping <strong>4.5% to $69.94<\/strong> as progress in U.S.-Iran peace talks reduced the geopolitical risk premium.<\/li>\n<li>The <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a><\/strong> stabilized near <strong>7,350<\/strong> as <strong>JPMorgan<\/strong> raised its year-end target for the index to <strong>7,800<\/strong>, citing strong earnings and easing inflation concerns.<\/li>\n<\/ul>\n<h2>Micron Leads AI Charge with Record Results<\/h2>\n<p><strong>Micron Technology (<a href=\"\/stock\/MU\">MU<\/a>)<\/strong> delivered a blockbuster earnings report, signaling that the AI-driven demand for memory chips is accelerating. The company reported adjusted <strong>EPS of $25.11<\/strong>, significantly higher than the <strong>$20.60<\/strong> expected by analysts. Looking ahead, Micron expects a <strong>tight memory market to persist beyond 2027<\/strong>, with <strong>Q4 revenue guidance of $50 billion<\/strong> far exceeding the <strong>$42.92 billion<\/strong> consensus.<\/p>\n<p>The chipmaker is aggressively expanding its capacity, forecasting <strong>fiscal 2026 capital spending at $27 billion<\/strong>. Management noted that <strong>High-Bandwidth Memory (HBM)<\/strong> and data center expansion remain the primary drivers of growth. This surge in demand is also expected to benefit other industry players like <strong>Samsung<\/strong> and <strong>SK Hynix<\/strong>, the latter of which is seeking a <strong>$29.4 billion U.S. listing<\/strong>.<\/p>\n<h2>Banking Sector Resilience Confirmed<\/h2>\n<p>The <strong>Federal Reserve<\/strong> announced that the U.S. banking system remains robust, as all <strong>32 major lenders passed the 2026 stress tests<\/strong>. The results show that these institutions could continue lending even during a hypothetical economic crash featuring high unemployment and a collapse in asset prices. The Fed plans to keep overall capital levels stable while transitioning to a new stress-testing framework by 2027.<\/p>\n<p>Immediately following the results, <strong>JPMorgan Chase (<a href=\"\/stock\/JPM\">JPM<\/a>)<\/strong> signaled its financial strength by authorizing a <strong>$50 billion common share repurchase program<\/strong> effective July 1, 2026. The bank also plans to increase its quarterly dividend to <strong>$1.65 per share<\/strong>. Conversely, <strong>Jefferies (<a href=\"\/stock\/JEF\">JEF<\/a>)<\/strong> reported a slight miss in Q2 earnings, with <strong>revenue of $2.21 billion<\/strong> coming in below the <strong>$2.30 billion<\/strong> estimate.<\/p>\n<h2>Energy Markets and Macro Outlook<\/h2>\n<p>Energy markets saw a significant shift as <strong>WTI crude fell 4.5% to $69.94<\/strong>, returning to levels seen before recent geopolitical tensions. The decline was fueled by reports of progress in <strong>U.S.-Iran peace talks<\/strong>, which eased fears of supply disruptions in the Middle East. Falling energy costs helped push the <strong>10-year U.S. Treasury yield down 9 basis points to 4.40%<\/strong>.<\/p>\n<p>In the broader market, the <strong>S&amp;P 500<\/strong> remained flat while the <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/dowjones\/today\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a><\/strong> rose <strong>0.4%<\/strong>. Investors are now shifting their focus toward the upcoming <strong>Personal Consumption Expenditures (PCE)<\/strong> price index, the Fed&#39;s preferred inflation gauge. Despite some concerns over a potential reacceleration in prices, <strong>JPMorgan<\/strong> analysts remain bullish, raising their year-end price target for the S&amp;P 500 to <strong>7,800<\/strong>.<\/p>\n<h2>Corporate and Policy Developments<\/h2>\n<p>The <strong>Trump Administration<\/strong> is reportedly seeking <strong>$88 billion<\/strong> in supplemental funding for various initiatives, including support for farmers and efforts related to Iran. The bill is also expected to include provisions for the <strong>year-round sale of higher-ethanol gasoline<\/strong>. In the tech sector, <strong>OpenAI<\/strong> has unveiled its first custom AI chip developed in partnership with <strong>Broadcom (<a href=\"\/stock\/AVGO\">AVGO<\/a>)<\/strong>, marking a major step in reducing reliance on external hardware.<\/p>\n<p>Meanwhile, <strong>MSCI<\/strong> announced it will add <strong>Honeywell Aerospace<\/strong>, a unit of <strong>Honeywell (<a href=\"\/stock\/HON\">HON<\/a>)<\/strong>, to its Global Standard and Large Cap Indexes effective June 30, 2026. In the AI talent war, <strong>Google (<a href=\"\/stock\/GOOGL\">GOOGL<\/a>)<\/strong> faced new setbacks as two leading researchers departed for competitor <strong>Anthropic<\/strong>. Anthropic also made headlines by accusing <strong>Alibaba (<a href=\"\/stock\/BABA\">BABA<\/a>)<\/strong> of attempting to gain unauthorized access to its <strong>Claude AI model<\/strong> through fraudulent accounts.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Micron Technology (MU) shares surged 8% in after-hours trading after reporting Q3 revenue of $41.46 billion, crushing the 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