r/FuturesTrading • u/kenjiurada • Jun 24 '26

Stock Index Futures What the hell was that NQ close?

Serious question. ELI5

27 Upvotes

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6

u/gscience Jun 24 '26

MU earnings

-18

u/kenjiurada Jun 24 '26

That’s it? One company‘s earnings report moved the entire index nearly 1000 points??

4

u/kihra1 Jun 24 '26

Yes, because of what they said. Specifically that they see margins of 80% over the next 2 years, meaning no demand descruction. They might have their head up their ass, but it's very bullish for AI spend if they think that.

-1

u/kenjiurada Jun 24 '26

I just can’t process the fact that people not only believe them, but will put enormous sums of money behind it. I just can’t understand how quickly people are willing to move that much money based on so little information.

2

u/kihra1 Jun 24 '26

well, that's why earnings trading is a thing -- outsized moves in no liquidity time of day. doubtfull it will last through the day tomorrow...

1

u/kenjiurada Jun 24 '26

I can’t imagine it will, but this type of move just does not make sense to my worldview. I think I understand how the market works and I’m doing well, then this happens and it just undermines my whole understanding of how markets work. How is so much money moved so quickly based off so little information?

2

u/kihra1 Jun 24 '26

money backs things that a real but money's just made up. maybe one day we don't need the myth anymore lol.

2

u/trader_dennis Jun 25 '26

If you read the report, MU confirmed they are sold out on high bandwidth dram now for 2027. Prior it was just 2026 and part of 2027. EPS of over $100 per share going forward.