Micron, SanDisk Rise Despite Strong Jobs Report Reviving Fed Hike Odds
Micron Technology (NASDAQ:MU) and SanDisk Corp. (NASDAQ:SNDK) surged by approximately 5% and 8%, respectively, on Friday despite a strong U.S. jobs report that temporarily increased the probability of a Federal Reserve rate hike above 50%. The unexpected rise in employment data pushed Treasury yields higher but did not deter memory stocks from outperforming the broader market. The August jobs report showed an addition of 162,000 new jobs—far exceeding expectations—and kept unemployment at 4.1%, prompting a spike in prediction markets for a potential September rate hike. Despite rising rates typically weighing on tech and semiconductor sectors, Micron and SanDisk continued to climb due to ongoing supply shortages and strong pricing trends. Analysts noted that the shortage of DRAM and NAND memory chips is driving up prices significantly—Susquehanna expects over 50% growth in DRAM contract prices this quarter. This demand-driven environment appears to be overshadowing concerns about rising interest rates or increased competition from Chinese rivals.
Topics: fed_rate_hike jobs_report memory_stocks treasury_yields