Market Volatility and Analyst Outlooks for Meta and Micron Ahead of Earnings
The Nasdaq Composite fell about 8% in early trading, marking a reversal after two record highs. The broader market is also down due to rising oil prices and bond yields, with strong economic data potentially giving the Federal Reserve room to raise interest rates further before year-end. Traders are now pricing in roughly a 50% chance of additional rate hikes at upcoming Fed meetings. Analysts from KeyBanc see parallels between Meta's current trajectory and Alphabet’s resurgence last year, citing improved legal outcomes and AI advancements like the Muse app as key drivers. They raised their price target for Meta to $900 per share with a 'buy' rating. Meanwhile, ahead of its earnings report next week, Micron received mixed analyst updates: Citi increased its price target while Wells Fargo lowered it; both maintained buy ratings. Wolfe Research highlighted the potential for significant stock repurchases by Micron once restrictions from CHIPS Act funding expire in December. The firm expects enough free cash flow over two years to allow share buybacks worth 25% of current market cap, aligning with a positive thesis on the company.
Topics: bond yields Dow Jones Industrial Average Federal Reserve interest rates Nasdaq Composite oil prices S&P 500