Yesterday, US equity indices saw a heavy sell-off. The S&P 500 fell by 1.44% and the Nasdaq 100 dropped by 2.21%. The Dow Jones Industrial Average slipped by 0.09%.

Today, global markets have stabilized after the tech rout, and all eyes are on Micron's results, due after the US close. The MSCI All-Country World index is essentially flat after a 1.7% decline yesterday. South Korea's KOSPI bounced by about 3% after Tuesday's 10% plunge, helped by reports of a possible Samsung buyback. S&P 500 futures are up 0.2% and Nasdaq 100 futures 0.5%.

Micron's report takes on special importance at a time of heightened tech sector nervousness. The stock plunged by 13% on Tuesday but remains up more than 250% year-to-date. The numbers will be a key read on whether demand for AI infrastructure is strong enough to justify current valuations.

Yesterday's liquidation highlighted how fragile the tech sector's balance has become. Fears that the AI rally ran too far and too fast triggered a global sell-off. The Asian index lost 3.6%, marking the largest drop since March. The Nasdaq 100 fell by about 3.3%. The Philadelphia Semiconductor Index, which had doubled from wartime lows, plunged by roughly 8%. That said, tech has a solid track record of recovering after corrections, and many market participants still view the sector as one of the best long-term opportunities despite elevated valuations.

There are, however, voices warning that AI may currently represent the largest bubble in market history in terms of scale, leverage, and exuberance. Still, a complete collapse is not imminent, and markets have not capitulated.

In commodity and fixed-income markets, the picture is important for the Fed. Brent crude fell below $77 on increased tanker traffic through the Strait of Hormuz, while US President Donald Trump asked the Justice Department to probe why gasoline prices are not falling faster. Treasuries stabilized after yesterday's rise as the equity sell-off and cheaper oil eased some of the pressure on the Fed to tighten further.

Technically, the S&P 500 analysis suggests that the immediate task for buyers is to overcome the resistance level of $7,381. Doing so would confirm upside momentum and open the path to $7,404. Maintaining control above $7,427 would further strengthen buyers' positions. On the downside, buyers need to defend $7,355. A break below that level would likely push the index back to $7,339 and open the way to $7,309.