Key Highlights
- Micron declined approximately 5% even after surpassing earnings forecasts and boosting its dividend by 30%, as shareholders cashed in following a 348% annual rally
- Five Below jumped roughly 8% following a 15% increase in comparable-store sales and optimistic 2026 outlook
- Alibaba’s American depositary shares slid 4.5% following a significant profit decline and revenue missing expectations
- Newmont led S&P 500 premarket decliners with a 5.4% drop as gold prices retreated on Federal Reserve rate messaging
- dLocal climbed approximately 7% after exceeding Q4 projections and unveiling a $300M stock repurchase initiative
Equity futures slipped lower Thursday morning following the Dow’s descent to a 2026 low. Inflationary pressures resurfaced after hotter-than-anticipated wholesale pricing data, while the Federal Reserve maintained its current interest rate policy.
Micron Technology shares declined roughly 5% during premarket hours, despite the memory semiconductor manufacturer exceeding earnings projections for its second fiscal quarter. The firm simultaneously increased its dividend payment by 30% to $0.15 per share.
Micron provided guidance for the upcoming quarter with adjusted earnings per share ranging from $18.75 to $19.55, accompanied by revenue estimates between $32.75 billion and $34.25 billion. Both metrics significantly exceeded analyst consensus.
Market observers attribute the decline to profit-taking behavior. Micron shares had climbed 348% during the previous twelve months, propelled by robust demand for memory semiconductors utilized in artificial intelligence systems.
The downturn affected related memory chip stocks. Sandisk declined 5.5%, while Seagate Technology and Western Digital retreated 1.4% and 2.6%, respectively.
Alibaba’s U.S.-traded shares tumbled 4.5% following the Chinese online retail behemoth’s announcement of a substantial quarterly profit decrease. Revenue figures also fell short of analyst expectations for the period concluding December 31.
The financial results indicated that artificial intelligence segment growth failed to compensate for challenges facing Alibaba’s primary e-commerce operations.
Newmont Slides as Gold Retreats on Fed Messaging
Newmont emerged as the S&P 500’s weakest performer before market opening, dropping 5.4%. Gold valuations declined after Fed Chair Jerome Powell indicated the central bank remained cautious about disregarding inflationary risks associated with Iranian tensions.
Elevated interest rate environments typically diminish gold’s attractiveness relative to bonds and alternative yield-generating investments.
Five Below and dLocal Defy Market Weakness
Five Below represented a notable exception, advancing nearly 8% after disclosing a 15.3% surge in comparable store sales during the fourth quarter. Revenue expanded 24.5% year-over-year to $1.73 billion.
The value retailer projected first-quarter sales ranging from $1.18 billion to $1.20 billion, anticipating comparable sales expansion of 14% to 16%. The company additionally announced intentions to launch approximately 150 new locations throughout 2026.
dLocal shares appreciated about 7% after the Uruguayan payment processing firm surpassed estimates across revenue, gross profit, and operating income metrics in the fourth quarter. The company simultaneously unveiled a $300 million share buyback program.
dLocal forecasted total payment volume growth between 50% and 60% for 2026, substantially exceeding Wall Street consensus.
Drone manufacturer Swarmer remained unchanged after Wednesday’s 77% surge. The stock had skyrocketed 520% during its Tuesday debut following its initial public offering.
Canadian Solar plummeted 13% after providing first-quarter revenue guidance of $900 million to $1.1 billion, significantly below analyst projections of $1.55 billion.
