Wall Street is eyeing a modest open Wednesday after Tuesday's tech rout wiped billions from the semiconductor sector. Nasdaq-100 futures are up about 0.6%, S&P 500 futures add 0.2%, while Dow futures hover near flat, a tentative rebound after one of the worst days for chip stocks in over a year.

The spotlight is firmly on Micron Technology (MU), which reports fiscal Q3 results after the closing bell. Consensus estimates call for EPS above $20, roughly a 1,000% year-over-year surge, on revenue around $35 billion, driven by insatiable demand for high-bandwidth memory (HBM) used in AI data centers. Micron's market cap has swelled past $1 trillion this year as the stock gained roughly 300%.

The Tuesday carnage

Yesterday's selloff was brutal and broad. The Nasdaq Composite fell 2.2%, the S&P 500 dropped 1.4%, and the Philadelphia Semiconductor Index (SOX) plunged 7.9%, its steepest decline in over a year.

Micron led the losses, falling 13% ahead of its own earnings. Nvidia dropped 4%, Intel lost 6%, and AMD declined 9%. The rout originated in Asia: South Korea's KOSPI tumbled nearly 10% as Samsung and SK Hynix each sank about 12%.

The trigger was a convergence of fears, overheated AI infrastructure spending, questions about whether hyperscaler capex will deliver returns, and rising bets on Federal Reserve rate hikes. The message from the market: after a relentless AI rally, investors are demanding proof, not promises.

FedEx misses on guidance despite headline beat

FedEx (FDX) reported a solid Q4 beat after the close, adjusted EPS of $6.31 versus $5.96 expected on revenue of $25 billion. But the stock slid about 6% in after-hours trading as forward guidance disappointed. Management flagged margin pressure and costs tied to the FedEx Freight spin-off, tempering enthusiasm for the logistics giant's outlook.

Cerebras posts first public quarter

Cerebras Systems (CBRS), the AI chip startup that pulled off 2026's biggest IPO in May, reported its first quarterly earnings as a public company. Revenue nearly doubled year-over-year, but the stock fell roughly 10% in extended trade on gross margin outlook that underwhelmed.

Economic data ahead

Two data releases are on today's calendar: May new home sales (consensus around 640,000 annualized units) and the Federal Reserve's annual bank stress test results at 4:00 p.m. ET. While the results won't affect capital requirements this year under the Fed's updated framework, they remain a key read on banking system resilience.

The bottom line

Today is a stress test of a different kind. Micron's print will set the tone for semiconductor and AI sentiment in the days ahead. A beat paired with strong HBM guidance could restore confidence in the AI trade. A miss, or cautious forward commentary, risks accelerating the rotation out of tech.

The market caught its breath overnight. The question now is whether this is a dip worth buying, or the first inning of a deeper correction.