Wall St Opens Higher; Micron Up 5%; TSMC Up 3%; Zscaler Down 25%; PDD Down 10%

Tiger Newspress05-27

Market

May 27, U.S. stocks opened modestly higher as the Dow Jones added 0.27%, the S&P 500 ticked up 0.09% and the Nasdaq Composite rose 0.14%. Futures strength in all three major contracts signaled a cautiously constructive tone, with investors eyeing resilient consumer demand and cooling inflation data that reinforced expectations for eventual Fed rate cuts.

Gainers led early action: Qifu Technology jumps 21.4% on upbeat guidance, United Microelectronics spikes 9.9% after strong monthly sales, Rocket Lab USA climbs 4.8% on contract wins, Micron Technology rises 4.5% on memory-chip optimism, Taiwan Semiconductor Manufacturing adds 2.7% on AI-chip demand, and Tesla Motors advances 2.2% after bullish shareholder comments. On the downside, Zscaler plunges 25.1% on weak billings guidance, while PDD Holdings Inc slides 9.6% on an earnings miss and Lumentum slips 3.1% after a cautious outlook.

Among broader movers, Redwire Corp. rallies 9.4%, Direxion Daily MU Bull 2X Shares jumps 9.0%, AST SpaceMobile gains 3.3% and Western Digital adds 1.9% as memory names extend momentum. Decliners include Qualcomm, down 1.8% amid smartphone demand worries, and Nokia Oyj, off 3.4% following a downgrade.

News

Micron Technology lifts revenue outlook, shares climb 4.5%. Management cited stronger pricing in high-bandwidth memory for AI servers, boosting confidence in a second-half recovery.

Zscaler cuts billings forecast, stock plunges 25.1%. The cloud-security firm blamed longer sales cycles and budget scrutiny, sparking concerns about slowing enterprise demand.

PDD Holdings Inc misses quarterly revenue estimates, shares sink 9.6%. Rising marketing expenses and intensified competition in China e-commerce pressured margins, prompting several brokers to trim targets.

Qifu Technology beats earnings and raises loan-origination guidance, stock soars 21.4%. Robust consumer-credit demand in China drove record fee income, fueling the day’s biggest gain on the NYSE.

United Microelectronics reports double-digit sales growth, ADRs jump 9.9%. Management flagged accelerating AI-chip orders and tight 28-nm capacity, lifting sentiment across foundry peers.

Tesla Motors edges higher after CEO outlines affordable model roadmap. The update reassured investors that a sub-$30,000 vehicle remains on track, easing demand concerns and supporting the stock’s 2.2% pop.

Taiwan Semiconductor Manufacturing advances on reports of expanded NVIDIA orders. Industry checks pointed to an early ramp of 3-nm AI GPUs, reinforcing leadership in cutting-edge nodes.

Western Digital gains after spin-off progress update. The company said its NAND separation remains on schedule for fiscal Q4, positioning both entities for focused growth in memory and HDD markets.

Lumentum slides 3.1% as muted datacom demand offsets improved telecom sales. The optical-component maker’s guidance fell short of consensus, prompting analyst downgrades.

Fed Beige Book shows modest growth and easing wage pressures. The report supported expectations that inflation is cooling, bolstering hopes for policy easing later this year.

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