Memory stocks surge on U.S.-Iran ceasefire

On June 11, U.S.-Iran tensions eased, driving a broad market rebound. The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average rose 1.75%, 2.54%, and 1.86% respectively. Memory and storage stocks surged, with Seagate Technology Holdings (STX) and Sandisk Corp (SNDK) leading the way. Micron (MU), a key player in AI memory, trimmed losses and is up 40% since April.

The ceasefire restored risk appetite in semiconductor markets, benefiting memory and storage stocks. AI memory stocks, including Micron, Sandisk, and Western Digital (WDC), experienced volatility due to geopolitical tensions and sector-specific selling pressure. Despite recent declines, AI remains a powerful catalyst for tech stocks, according to Wall Street strategists.

Investors should watch Micron's earnings, due on June 29, for further insights into AI demand. Additionally, any developments in U.S.-Iran relations and the broader market's reaction to the Iran ceasefire will shape the narrative around memory stocks. Lastly, keep an eye on the iShares Expanded Tech-Software Sector ETF (IGV) as a gauge for tech sector sentiment.