Why Micron (MU) Stock Is Falling

Micron Technology Inc MU shares are trading lower by 3.92% to $85.89 during Friday’s session as semiconductor, hardware and AI-related stocks continue to experience a broader market pullback. The sector's decline is also likely tied to Broadcom Inc.’s dip after posting its earnings report, which has weighed on other chipmakers.

How Jobs Data Affects Micron: Friday’s release of jobs data showed slower-than-anticipated growth in nonfarm payrolls. This weaker-than-expected report could be causing investors to reevaluate their expectations for potential Federal Reserve interest rate cuts.

Previously, there was a 43% likelihood of a 50-basis-point rate cut, but with the sluggish job numbers, traders may be reassessing these assumptions. If the market believes the Fed may not lower rates as aggressively as previously thought, it could impact stocks tied to growth, including Micron.

Read Also: Job Creation Falls Short Of Expectations In August, Unemployment Rate Ticks Lower, Wage Growth Soars

Why Interest Rates Matter To Micron: While Micron may not be directly affected by borrowing costs like companies with high debt levels, changes in interest rates still impact the overall market environment. Higher interest rates can raise the cost of capital for Micron's customers, making it more expensive for them to invest in new technologies, which could hurt demand for Micron's memory and storage products.

If the jobs data influences the Fed to hold off on larger rate cuts, it could lead to prolonged uncertainty. This could make investors cautious and lead to further volatility in Micron's stock price as they digest the potential impact on future capital investments in technology.

Investors can gain exposure to MU by investing in the Invesco QQQ Trust, Series 1 QQQ.

Read Also: Why Big Lots Stock Is Extremely Volatile Today

How To Buy MU Stock

By now you're likely curious about how to participate in the market for Micron Technology – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, MU has a 52-week high of $157.54 and a 52-week low of $63.83.