Stock markets: Europe up on the back of a rebound in chip shares. In Milan (+0.3%), ST leads the gains; on Wall Street, Micron surges

(Il Sole 24 Ore Radiocor) - Renewed enthusiasm in the technology sector, sparked by Micron’s record results, is once again buoying tech shares and stock markets on both sides of the Atlantic. European stock markets thus closed on a positive note, driven by the chip sector (the Stoxx 600 sector index rose by 0.9%), with the FTSE MIB closing 0.28% higher, buoyed by a surge in ST (+2.75%), the market’s top performer. On Wall Street, the Nasdaq was weighed down by the fall in Apple , which dampened the momentum of Micron Technology . However, the US chip giant’s results have reignited buying interest following the sell-off over the last two trading sessions. Micron closed a third quarter that exceeded expectations with encouraging prospects for data centres and AI. Turnover hit a record of $41.58 billion (+356% compared to last year), EPS at $25.11 per share compared with estimates of $20.78, and gross margin at 84.9% compared with estimates of 81.6%. According to David Pascucci, market analyst at XTB, “demand for AI is driving the share price, in line with the sector as a whole, and the stock market is responding positively”.

A mixed and volatile session on Wall Street, where the Dow Jones hit a new record high, driven by Caterpillar and Goldman Sachs, whilst the Nasdaq turned negative, with Micron’s rally (albeit a more subdued one) proving insufficient. Weighing on the market were sharp falls in Apple – following the announcement of price rises for iPads and MacBooks – as well as in Nvidia and Arm. No surprises from the week’s other market mover, a key figure from the Fed’s perspective: US PCE inflation, which measures the average rise in prices for domestic personal consumption and takes account of changes in purchasing patterns. The PCE figure rose by 0.4% in May compared with the previous month, against expectations of 0.5%. Compared with a year earlier, it rose by 4.1 per cent, in line with expectations, but up from 3.8 per cent the previous month. The 'core' component of the figure, adjusted for volatile items, rose by 0.3% month-on-month, in line with expectations, and by 3.4% year-on-year, again in line with expectations.

Surprisingly, however, the US economy expanded at a faster pace in the first three months of the year than expected: GDP grew at an annualised rate of 2.1% in the first quarter of 2026, according to the third and final estimate published by the Bureau of Economic Analysis. The consensus forecast among economists surveyed by FactSet had predicted growth of 1.6%, in line with the second estimate.

“The inflation report confirmed what we already knew: inflation is a problem. However, as this was already known, it goes without saying that it comes as no surprise and therefore does not hold back the US equity rally driven by the tech sector. Although the Fed adopted a more hawkish tone than expected last week, investors reacted calmly, as is particularly evident in the small-cap segment,” comments Bret Kenwell, US Investment Analyst at eToro. Better-than-expected spending and income figures, together with resilient GDP and jobless claims data, “reinforce the view that consumers and the economy as a whole remain on a solid footing. “This may not soften the Fed’s stance, but it helps to ease fears of a stagflationary slowdown,” he adds.

On the Milan Stock Exchange, the tech sector’s recovery is driving the rise in STMicroelectronics (+2.75%), which closes at the top of the index, alongside the Dutch firms ASM and ASML Holding, which lead the gains in Amsterdam. Prysmian (+0.17%), however, failed to keep pace, having been swept up in the sector’s euphoria thanks to its electrification cabling business. Also among the top performers were Buzzi (+2.17%), Ferrari (+1.6%) and the utilities, led by Enel (+2%) and A2A (+1.5%). The defence sector remains at the bottom of the table, with Avio (-6.6%), Leonardo (-3.97%) and Fincantieri (-3.94%). There was selling pressure on Lottomarica (-0.4%), whilst rumours suggest a reform of land-based gambling is on the cards in the coming months to avoid EU sanctions. Stellantis’s rebound failed (-0.95%), following the previous day’s falls due to weak European vehicle registration figures.