The S&P 500 Index (SPY) is down -0.18%, the Dow Jones Industrial Average (DIA) up +0.49%, and the Nasdaq 100 (QQQ) down -0.20%. September E-mini S&P futures (ESU26) fell -0.30%, while Nasdaq futures (NQU26) dropped -0.32%.
Stock indices reversed early gains as weakness in mega-cap technology stocks pressured the broader market. Initial strength in chipmakers faded after Micron Technology’s robust Q4 revenue forecast of $50 billion (vs. $43.24B consensus) and Qualcomm’s projection of $15B+ in AI data center sales by 2029. These optimism-driven rallies were short-lived amid broader market indecision.
Positive U.S. economic data, including revised Q1 GDP growth to +2.1%, falling jobless claims (-215K), and resilient personal spending/income figures contributed to market support. However, declining crude oil prices (-1% to 4-month lows) and OPEC+ supply concerns tempered oil-related optimism.
Market sentiment improved as the Fed’s preferred inflation gauge (core PCE) rose +3.4% y/y as expected, paired with falling 10-year Treasury yields to 4.36%. The market now prices a 28% chance of a 25-bp rate hike at the July FOMC meeting.
Oil price declines accelerated after Iraq threatened to exit OPEC, reducing geopolitical supply risks. Tech weakness dominated, with Apple (AAPL) down -4% after price hikes, while Alphabet (GOOGL), Amazon (AMZN), Microsoft (MSFT), and Meta (META) fell -2% or more. Dell (DELL) and Trip.com (TCOM) underperformed due to analyst downgrades and earnings misses.
Chipmakers and AI-focused names reversed earlier losses. Micron (MU) surged +9%, Qualcomm (QCOM) rose +3%, and Nvidia (NVDA) gained despite broader tech declines. Transportation stocks, including United (UAL) and Delta (DAL), benefited from lower fuel costs.
European markets showed mixed reactions, with German bonds falling to 2.856% yield and Japanese indices jumping +4.61%. U.S. swaps discounted a 9% probability of an ECB rate hike.
