U.S. Treasury yields fell as markets resumed trading after the Memorial Day holiday, with the 10-year yield dipping below 4.5%. This decline comes amid shifting expectations for Federal Reserve rate cuts, with the probability of a July hike rising significantly to 8.5% from just 0.9% a month ago. Investors are also closely monitoring upcoming consumer sentiment data from the Conference Board.

In the semiconductor sector, Micron Technology is capturing attention after UBS raised its price target dramatically from $535 to $1,625, citing a favorable shift in the memory market driven by long-term supply agreements. This upgrade reflects expectations of lower earnings volatility and improved demand visibility, particularly in the server-grade DDR5 segment, which is crucial for AI infrastructure and data centers. Other semiconductor stocks like Qualcomm and AMD are also seeing gains, contributing to a broader sector rally.

The key takeaway for market professionals is the potential for Micron to outperform amid a structural shift in memory demand, suggesting a strong investment opportunity as the company secures significant market share in a high-growth area.

Source: xtb.com