Chip Stock Plunge Boosts Bullish Case as Oil Drops

Key Facts

1Chip stocks experienced sharp declines this week amid forced deleveraging.

2Micron's strong earnings may help stabilize the sector.

3Oil prices fell below $70 as Strait of Hormuz traffic improved, creating a supply glut.

In a market environment marked by volatility and macro crosscurrents, chip stocks experienced sharp declines this week amid forced deleveraging in growth tech and crypto, according to reports. However, analysts suggest that Micron's strong earnings may help stabilize the sector, especially as falling oil prices ease inflation concerns.

Oil prices dropped below $70 a barrel, per reports, as improved navigation in the Strait of Hormuz boosted supply. Lower oil prices help alleviate inflation fears, reducing pressure on the Federal Reserve to hike rates — a positive backdrop for growth and tech stocks. Micron closed at $1,048.51 on June 24, 2026, after hitting a session low of $991.10.

At current levels, MU trades at $1,048.51 with a daily range of $991.10–$1,083.32 (close of June 24). Investors are watching Micron's earnings as a catalyst for sector recovery, alongside any Fed commentary that could signal the rate path. Oil staying below $70 remains a constructive factor for risk appetite in growth assets.