Wall Street exhibited mixed performance on Thursday as strong earnings from Micron (MU) were overshadowed by a broader retreat in Big Tech and a fresh inflation report indicating rising prices in May.
The tech-heavy Nasdaq Composite (^IXIC) declined 0.5%, and the S&P 500 (^GSPC) dipped slightly, continuing a streak of volatility for major indices. Conversely, the Dow Jones Industrial Average (^DJI), which has less exposure to the technology sector, managed a modest gain of 0.1%.
Micron provided a bright spot for investors, alleviating concerns regarding AI valuations and capital expenditure. The chipmaker’s shares surged over 15% following an impressive earnings beat and optimistic future guidance.
Despite Micron’s success, several Big Tech “hyperscalers” faced downward pressure as investors grew concerned over the impact of massive AI investments on free cash flow. Apple (AAPL) saw its shares drop approximately 6% after the company increased prices for MacBooks and iPads to offset rising storage and memory costs.
In a strategic pivot, Qualcomm (QCOM) announced an expansion into data center products, including specialized chips and servers, to further capitalize on the AI trend. The stock climbed roughly 7% after the company set a revenue target of $15 billion for these new ventures.
Energy markets also saw movement, with oil prices stabilizing as supply resumed flowing through the Strait of Hormuz. Brent crude futures (BZ=F) rose slightly to $75 per barrel, while West Texas Intermediate futures (CL=F) traded around $71.
Market attention remained focused on the latest Personal Consumption Expenditures (PCE) index—the Federal Reserve’s primary inflation gauge. The report revealed that prices surged again in May, partially driven by geopolitical shocks related to the Iran war.
This uptick in inflation is expected to keep the possibility of an interest rate hike on the table for the remainder of the year.