TLDR
- AI stocks are bouncing back Wednesday after a sharp sell-off the day before
- Micron is up ahead of its fiscal Q3 earnings report after the closing bell
- Qualcomm rose on reports it may supply custom chips to ByteDance, TikTok’s parent company
- Cerebras fell 11% despite strong results, as investors focused on shrinking profit margins
- FedEx dropped over 6% after its full-year profit outlook came in below expectations
Wall Street saw a mixed but cautiously hopeful morning on Wednesday, June 24, as investors looked to recover after a rough session driven by tech-sector selling.
Futures tracking the Nasdaq 100 climbed 0.5% in early trading, with buyers returning to some of the AI-linked names that took the hardest hits on Tuesday.
AI Stocks Find Their Footing
Micron Technology rose 3.7% in premarket trading ahead of its fiscal third-quarter earnings report, due after the market closes Wednesday. The results are expected to give investors a clearer read on whether demand from AI applications continues to hold up.
Qualcomm added 2.3% after Reuters reported the chipmaker is in talks to supply custom chips to ByteDance, the company that owns TikTok. Qualcomm did not respond to a request for comment.
Advanced Micro Devices climbed 1.3%, Intel advanced 1.5%, and Super Micro Computer gained 1.8%, all joining the broader AI-sector recovery.
KB Home rose 4% after the homebuilder reported second-quarter revenue that beat expectations. The company kept its full-year outlook roughly in line with analyst estimates, pointing to 73% of net orders coming through its built-to-order model.
ICON, the clinical research organization, gained 6% after reporting first-quarter results above estimates. Adjusted earnings per share came in at $2.50, revenue hit $2.03 billion, and its backlog grew to $22.7 billion.
Cerebras and FedEx Pull Back
Cerebras Systems fell around 11% despite posting strong first-quarter results. Revenue grew 94% year over year to $193.4 million, and the company’s loss per share was narrower than expected.
Investors reacted negatively to the company’s guidance for second-quarter gross margins of 36% to 38%, down from 47% in the first quarter. The margin compression overshadowed a major contract with OpenAI worth more than $20 billion and a new partnership with AWS.
Cerebras also issued full-year revenue guidance of $855 million to $865 million, implying roughly 69% growth at the midpoint.
FedEx dropped more than 6% after its fourth-quarter results failed to ease investor concerns. Revenue climbed 13% year over year to $25 billion, and adjusted earnings per share of $6.31 topped estimates.
The problem was the outlook. FedEx guided full-year 2026 earnings per share of $16.90 to $18.10, with the midpoint falling short of what analysts had expected.
It was also the company’s first earnings report since completing the spin-off of its freight unit earlier this month.
Wendy’s surged 26% after posts on Reddit’s WallStreetBets forum pushed users to buy shares of the fast-food chain. The move follows a pattern seen in past retail-driven stock spikes.
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