Tech stocks fluctuated on Thursday after Micron’s strong earnings failed to lift confidence in the AI sector and a fresh inflation report signaled price growth in May.
The Nasdaq Composite slipped 0.6% following an earlier rise, while the S&P 500 hovered near its equilibrium level after a series of challenging days for Wall Street stocks. The Dow Jones Industrial Average, which features fewer technology names, gained 0.2%.
Micron’s record‑setting quarterly results eased concerns over lofty AI valuations and spending, and shares surged more than 15% after the company’s blowout earnings beat and guidance.
Meanwhile, Qualcomm announced a strategic pivot beyond smartphones into data‑center products such as chips and servers, aiming to capture the AI boom. The stock rose about 7% after the company set a target of $15 billion in new revenue from this segment.
Oil prices also provided a boost, hovering near levels not seen since the Iran war as supply resumed flowing through the Strait of Hormuz. Brent crude futures rose slightly to $75 a barrel, while West Texas Intermediate futures traded around $71.
The focus shifted to the latest Personal Consumption Expenditures (PCE) index, the Fed’s preferred inflation gauge. The index indicated that May prices surged again, rising 4.1% on an annualized basis, with a month‑over‑month gain of 0.4% slightly below expectations.
These figures are likely to keep the debate on an interest‑rate hike alive throughout the year.
