US stocks opened slightly higher on Tuesday with the S&P 500 and Nasdaq edging up as memory chip stocks led gains. Micron Technology jumped more than 6% after joining the trillion-dollar club, while Pinduoduo fell over 9%.
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US stocks open higher, Micron jumps 6% leading chip rally
US stocks edged higher at the open Tuesday, with the S&P 500 rising 0.1% and the Nasdaq Composite adding 0.12%, as memory chip stocks extended gains after Micron Technology surged past $1 trillion in market value a day earlier.
"The semiconductor cycle is showing no signs of peaking, with memory demand driven by AI data center buildouts continuing to accelerate," said Timothy Arcuri, semiconductor analyst at UBS, who raised his Micron price target to $1,625 from $535.
Micron Technology climbed more than 6% in early trading, building on Monday's 19.3% rally that pushed the stock to $895.88 and made it the latest chipmaker to join the trillion-dollar club alongside Nvidia, Apple and Microsoft. Seagate Technology, SanDisk and Western Digital each gained more than 3%. The broader semiconductor sector also advanced, with Marvell Technology rising 4% and Taiwan Semiconductor Manufacturing Co. adding 3%. The Dow Jones Industrial Average gained 0.2%.
The rally extends a record-setting stretch for US equities. The S&P 500 closed at an all-time high of 7,519.12 on Monday, while the Nasdaq finished at 26,656.18 — both records set as markets largely shrugged off geopolitical tensions in the Middle East. The 10-year Treasury yield eased to 4.49% from 4.56% late Friday, providing additional support for growth stocks with longer-duration cash flows.
In contrast, Pinduoduo tumbled more than 9% in early trading, weighing on Chinese ADRs as company-specific headwinds emerged. The decline stood out against the broader market's advance, highlighting the divergence between US tech momentum and China-listed equities facing regulatory and competitive pressures.
This article is for informational purposes only and does not constitute investment advice.
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