this US stock market Stocks were mixed on Thursday, with technology stocks under pressure and a number of non-artificial intelligence stocks helping push the Dow Jones higher. The Nasdaq Composite fell 0.4% and the S&P 500 gained 0.4%. The Dow Jones Industrial Average rose 598 points, or 1.1%.
Micron earnings beat expectations
Micron Technology was one of the day’s biggest winners after reporting much stronger-than-expected quarterly earnings. Micron Technology shares rose about 12% in trading, after rising as much as 17% earlier in the day.
The company reported adjusted earnings of $25.11 per share, beating analysts’ expectations of $20.78 per share, according to LSEG data provided by CNBC. Micron’s revenue rose to $41.46 billion from $9.3 billion a year ago, well above analysts’ expectations of $35.85 billion. Micron Technology’s strong results boosted confidence in the semiconductor industry and helped lift several chip stocks.
Chip stocks rise
Qualcomm shares rose after Qualcomm almost doubled its 2029 non-phone revenue target from $22 billion to $40 billion. Shares of Sandisk, Western Digital, KLA and Applied Materials were also higher as investors reacted positively to Micron Technology’s results. However, the gains in chip stocks were not enough to boost the entire technology sector.
Apple shares fall
Apple shares fell nearly 5%, becoming one of the biggest decliners on the Nasdaq. According to CNBC, investors reacted negatively after Apple announced it would raise prices on some MacBook and iPad models. Apple cited rising component costs, especially chip prices, as the reason for the price increase.
Tech giants under pressure
The news heightened concerns that rising chip costs could hurt big tech companies’ profits. Other major technology companies also fell in trading. Nvidia and Amazon both fell more than 2%.
Microsoft shares were also lower as investors reduced exposure to major technology stocks. Meta Platforms and Alphabet both fell more than 1%. SpaceX shares have also been affected by the broader technology sell-off. SpaceX shares fell about 1%, a similar drop from the previous day.
Markets open higher
Earlier in the session, the three major U.S. stock indexes opened higher on strong corporate earnings news, CNBC reported. The S&P 500 rose 0.8%, the Nasdaq gained 1%, and the Dow Jones rose 316 points shortly after the opening bell. Investor sentiment subsequently changed as tech stocks weakened throughout the session.
PCE inflation data
Economic data released on Thursday also caught investors’ attention. The personal consumption expenditures (PCE) index, the Federal Reserve’s preferred inflation gauge, rose 0.4% in May from the previous month, according to the Commerce Department. According to CNBC, economists had expected growth of 0.5%, which made the results slightly better than expected.
On an annual basis, overall personal consumption expenditures inflation increased by 4.1%, in line with economists’ expectations. Core personal consumption expenditures inflation, which excludes food and energy prices, rose 0.3% in May and was up 3.4% year-on-year. The annual core inflation rate was 3.4%, the highest level since October 2023. Although inflation remains high, investors were relieved that the numbers did not exceed expectations.
Treasury yields fall
Market participants worry that rising energy prices linked to tensions in the Middle East could push up inflation. Treasury yields fell after the inflation report. The benchmark 10-year U.S. Treasury note yield fell more than 2 basis points to about 4.37%.
this dollar index After strength the previous day, little changed during the session. Trip.com shares fell 12% after the company reported earnings that fell short of Wall Street expectations and issued weaker-than-expected revenue guidance.
Wendy’s and Bio-Techne Rally
Wendy’s Stock It rose another 7% in pre-market trading after surging more than 25% in the previous session. Bio-Techne shares rose 19% after agreeing to be acquired by drugmaker Merck & Co. for $73 a share.
Overall, Thursday’s market action showed a clear divergence between strong chip companies and struggling Big Tech stocks. Investors welcomed solid earnings and inflation data but remain concerned that rising chip costs could put pressure on major technology companies’ profits in the coming months, CNBC reported.
