Micron (MU 3.01%) stock is roaring higher in Wednesday's trading. The artificial intelligence (AI) memory-chip leader's share price was up 7.7% as of 1:15 p.m. ET. Meanwhile, the S&P 500 was up 0.6%, and the Nasdaq Composite had risen 1.2%.
The stock market is rallying on news that the U.S. and Iran have agreed to extend their ceasefire. Micron stock may also be seeing bullish momentum in conjunction with news that the company is pushing to change U.S. policy on foreign companies that sell advanced chip manufacturing equipment to China.
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Micron stock gets a lift from ceasefire news
Two weeks ago, President Donald Trump announced that the U.S. and Israel had agreed to a two-week ceasefire with Iran. While issues involving blockades and the passage of ships through the Strait of Hormuz remain, Trump recently announced that he had agreed to extend the ceasefire as the two sides in the conflict continue to work on proposals to end the war. If the conflict can be successfully wound down, that would help reduce oil prices and limit inflationary pressures that could derail positive momentum for the stock market.
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Micron is taking an interesting stance on China
Reuters announced today that Micron is advocating for U.S. legislators to pass the MATCH Act in order to introduce new export restrictions on the sale of advanced semiconductor manufacturing equipment to China and close existing loopholes being used to facilitate the sale of banned hardware. While the U.S. already has export bans in place, the MATCH Act seeks to apply pressure to companies in other countries that are selling high-end chip manufacturing equipment to China. The passage of the Match Act could potentially make it more difficult for Chinese companies to secure foundry equipment capable of producing chips that compete with Micron's high-end designs.
