US Stocks Plummet as 30-Year Treasury Yield Hits 19-Year High
The US stock market closed lower on Monday, with the Dow Jones Industrial Average falling 0.51% to 53,459.78 and the S&P 500 Index dropping 0.52% to 7,745.06.
Micron Technology's stock rose 4.13% to $1,011.75, returning to the $1,000 mark for the first time in three weeks, according to Pierre Ferragu of New Street Research, who upgraded Micron's stock rating from 'Neutral' to 'Buy' and sharply raised his target price to $1,250.
The firm forecasts that by 2030, cash on Micron Technology's balance sheet will exceed $600 billion, with annual free cash flow topping $150 billion. Looking ahead, Ferragu believes Micron's market capitalization could reach $2 trillion to $3 trillion by 2030, implying the market currently severely underestimates the company's long-term earning power.
Nvidia announced that its Spectrum-X Ethernet Photonics switch based on co-packaged optics (CPO) technology has officially entered mass production, delivering 5x optical power efficiency, 5x AI application execution runtime, and a 10x improvement in reliability compared to traditional pluggable optical module solutions.
The US government's expanding debt levels are fueling concerns over rising inflation, as the 30-year US Treasury yield hit its highest level since 2007, reaching 5.31% on Monday.