Micron Technology Inc. and SanDisk Corp. saw significant gains in early trading on Friday, with Micron up 5% and SanDisk up 8%, sharply outperforming the S&P 500 which slipped 0.2%. This surge occurred even as a surprisingly strong U.S. jobs report for August (adding 162,000 jobs vs. 56,000 expected) sent Treasury yields higher and briefly pushed the odds of a 25-basis-point Fed rate hike in September above 50% on prediction markets. The two-year Treasury yield jumped from 4.34% to 4.425% after the report.

Memory stocks continued climbing despite the hawkish repricing, with Dell COO Jeff Clarke highlighting insufficient supply and shortages across the semiconductor chain, particularly for DRAM and NAND. Susquehanna expects DRAM contract prices to rise over 50% this quarter, and NAND prices about 60%. Micron's revenue is roughly three-quarters from DRAM, while SanDisk is heavily exposed