Markets across Asia and Europe surged overnight after Micron shattered earnings expectations. Now Wall Street — and Bay Street — open with tailwinds, but a critical U.S. inflation report hangs over the session.
Global markets are riding a powerful wave of optimism on Thursday, June 25, 2026 — and one company is responsible for nearly all of it. Micron Technology's blockbuster fiscal third-quarter results, released after the close of U.S. markets on Wednesday, delivered the strongest possible signal that the artificial intelligence spending cycle is not slowing down. The results rippled across time zones, lifting Tokyo, Seoul, and European tech stocks before North American markets even opened. For Canadian investors watching the TSX, the session is setting up as a battle between renewed AI enthusiasm and the weight of a persistently troubled energy sector — with a crucial U.S. inflation report adding a layer of suspense just as the opening bell rings.
🍁 Canada — TSX
The S&P/TSX Composite Index closed at 34,736 on Wednesday, June 24, down roughly half a percent, dragged lower by a punishing session for commodity-linked sectors. Mining stocks bore the brunt of declining gold prices, with Agnico Eagle losing 4.1%, Barrick shedding 4.3%, and Wheaton Precious Metals retreating 2.9%. Oil's continued slide — Brent crude dropping to its lowest level since before the U.S.-Iran conflict erupted in late February — hammered energy names, with Canadian Natural Resources off 3.7%, Suncor down 3.4%, and Cenovus falling 4.1%.
The one bright spot on Bay Street was Canadian technology. With Micron's blowout earnings lifting the global chip complex overnight, Shopify jumped 6.1%, Constellation Software added 2.8%, and Celestica gained 3.3% on Wednesday ahead of the results — and are positioned to extend gains in Thursday's session. The big Canadian banks traded near flat, with RBC, BMO, and TD Bank each edging marginally lower as investors weighed persistent borrowing cost pressure against stable deposit bases.
Thursday's open on the TSX will be shaped by the aftershock of Micron's results. Canadian tech names and semiconductor-adjacent stocks should see buying interest, though the energy and gold sectors remain vulnerable while oil continues its post-Hormuz slide and gold hovers near a seven-month low. The Canadian dollar slipped to approximately 70.75 cents U.S. on Wednesday, reflecting broad commodity weakness and continued uncertainty over the Bank of Canada's policy path. The BoC has held its benchmark rate at 2.25% since earlier this year; with U.S. rate hike speculation intensifying, the loonie faces headwinds into the second half of 2026.
🇺🇸 United States
Wednesday's regular session ended on a mixed note: the Dow Jones Industrial Average rose 182 points (+0.35%) to close at 51,848.90, buoyed by strength in industrial and healthcare names. The S&P 500 slipped 0.10% to 7,358.22 and the Nasdaq Composite fell 0.43% to 25,476.64 as technology and energy stocks weighed on sentiment. The Russell 2000 bucked the tech-led weakness, adding 0.37% to 2,986.63. The 10-year U.S. Treasury yield dropped below 4.5% as oil prices fell sharply, providing some relief on the rate front.
Then came Micron. After the close, the memory chipmaker reported fiscal Q3 results that demolished analyst expectations: adjusted earnings of $25.11 per share against estimates of $20.78, and revenue of $41.46 billion versus the forecast of $35.84 billion. Cloud memory revenue alone surged over 300% year-over-year to $13.77 billion. Micron's guidance for the current quarter called for revenue of approximately $50 billion — far above the $43.58 billion Wall Street had penciled in. The stock surged roughly 16% in after-hours trading, and Qualcomm added another 12% after raising its own long-term revenue targets. Fellow semiconductor names — Sandisk, Western Digital, Lam Research, KLA, and Applied Materials — all rallied in sympathy.
As of pre-market Thursday, S&P 500 futures were up approximately 0.8% and Nasdaq 100 futures surged 2.2%. The question now is whether those gains hold once the May PCE inflation data hits the tape. The Bureau of Economic Analysis is releasing the Federal Reserve's preferred inflation gauge Thursday morning, with economists forecasting a headline rise of 0.5% month-over-month and 4.1% year-over-year — the highest annual reading since April 2023. Core PCE (excluding food and energy) is expected at 0.37% monthly and 3.4% annually. A hotter-than-expected number could rekindle fears of further Fed rate hikes and temper the Micron-fuelled rally.
Also on the earnings docket Thursday: Darden Restaurants, BlackBerry, and McCormick & Company, among others. The final Q1 U.S. GDP estimate is also due, with any downward revision introducing a stagflationary note to an already complex session.
🇪🇺 Europe
European markets closed in mixed territory on Wednesday before Micron's results were known. The pan-European Stoxx 600 finished just above the flatline. London's FTSE 100 added 0.31%, while France's CAC 40 rose 0.54%. Germany's DAX fell 0.62%, weighed down sharply by defense stocks — Rheinmetall plunged 18.6% after Germany announced plans to shelve a multibillion-euro project to build six frigates, shaking confidence in the defence spending build-up that had powered much of the sector's 2026 rally.
Thursday's European open told a different story. Micron's blowout results powered a sharp rebound in semiconductor names. The regional Stoxx 600 Tech index jumped 2.4% in early trading, with semiconductor materials maker Soitec leading gains at +6.5%. Infineon, ASMI, and Be Semiconductor each rose more than 5%. London's FTSE, however, was forecast to open slightly lower, reflecting the sector-specific rather than broad-based nature of Thursday's enthusiasm. EasyJet jumped 5.5% after rejecting a fourth takeover bid from Clearlake Capital.
🌏 Asia-Pacific
Asia delivered the most dramatic response to Micron's earnings. Japan's Nikkei 225 surged 4.61% to close at 72,366.34, with SoftBank alone up 7.9%. South Korea's Kospi jumped an extraordinary 5.42% to 8,930.30, posting what traders described as its best session in months and briefly hitting a record. SK Hynix — a direct Micron competitor and the world's second-largest memory chip producer — surged 13%, and Samsung Electronics rose 5.3%.
Not every market in the region joined the celebration. Hong Kong's Hang Seng Index declined 1.6% in late trading, weighed down by weakness in Chinese tech. Alibaba fell over 4% on Hong Kong exchanges after Anthropic accused the Chinese tech giant of attempting to extract its AI capabilities. Mainland Chinese markets were broadly mixed, with the Shanghai Composite nearly flat (+0.02%) and the Shenzhen Index rising 1.28%. Australia's S&P/ASX 200 dipped 0.68% as falling oil prices pressured the energy-heavy index.
🛢️ Oil & Gold
Oil continued its sharp retreat. Brent crude fell 4.33% Wednesday to settle at $73.74 per barrel — its lowest level since before the United States and Israel launched airstrikes against Iran in late February. WTI crude dropped 3.92% to $70.34 per barrel. The decline reflects easing geopolitical tensions: after the Strait of Hormuz reopened under a U.S.-Iran framework, tanker traffic is resuming, reducing the supply-disruption premium that had pushed oil above $100 earlier this year. Chevron's CFO said Wednesday she expects gasoline prices at the pump to follow crude lower in coming weeks, offering some relief to Canadian consumers heading into the summer driving season. President Trump separately ordered an investigation into oil companies for not passing lower crude prices on to motorists.
Gold remained under pressure, with futures trading near $4,000 per ounce — down sharply from this year's peak above $4,200, and hovering at a seven-month low. The precious metal has been hurt by a stronger U.S. dollar and rising expectations of further Fed tightening, both classical headwinds for the non-yielding metal. Gold's retreat is particularly painful for TSX mining stocks, given that gold producers like Agnico Eagle and Barrick carry heavy weightings in the Canadian index.
📋 What to Watch Today
May PCE Inflation (8:30 a.m. ET): The Fed's preferred price gauge is forecast to hit 4.1% year-over-year — the highest since early 2023. Core PCE is expected at 3.4% annually. A hotter read could reverse Micron-driven gains and put rate hike fears back in focus.
Final Q1 U.S. GDP: Any downward revision from the prior 1.6% estimate would introduce stagflation concerns into an already fragile macro picture.
Canadian Tech Names: Shopify, Celestica, and Constellation Software are the ones to watch on the TSX as the Micron rally ripples northward into Thursday's session.
Oil Sector: With WTI under $71 and Brent under $74, Canadian energy names face a challenging open. Watch Suncor, Canadian Natural, and Cenovus for further selling pressure — or any sign of stabilization.
Alphabet's Dow Entry: Alphabet officially joins the Dow Jones Industrial Average before next Monday's open, replacing Verizon. The reshaping of the blue-chip index further entrenches mega-cap tech at the heart of how most investors benchmark their portfolios.
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