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The NASDAQ Composite fell on Thursday, even after a blowout Micron Technology earnings report, as traders moved out of key technology stocks. The market was divided as non-artificial intelligence names boosted the Dow Jones Industrial Average to a new all-time intraday high.
The Dow gained 71.72 points to 51,920.62. Shares of JPMorgan Chase gained more than 2%, while Johnson & Johnson progressed 1%, and shares of Caterpillar jumped almost 5%.
The S&P 500 index reversed 0.54 points to 7,357.68.
The NASDAQ fell 118.03 points to 25,358.60.
Shares of Apple led the tech-heavy index lower, dropping 5% after the company announced price increases on MacBook and iPad. Apple cited the surge in prices for components like chips.
Additionally, Microsoft shares declined nearly 4% after the company announced it’s raising its prices on Xbox consoles.
Other major tech companies, which are buyers of semiconductors, also fell. Alphabet and Meta Platforms, for instance, both dropped 1%.
Some concern may be arising that the margins of major tech companies could be crimped because of the rising price of chips.
Micron surged 12% after the chipmaker reported fiscal third-quarter results that topped analysts’ expectations.
Fellow semiconductor stock Qualcomm gained 3% after raising guidance for its non-handset revenue in fiscal 2029. Other chip names, such as Sandisk, Western Digital, KLA and Applied Materials, rose in sympathy.
However, shares of Apple led the NASDAQ lower, dropping nearly 5% after the company announced price increases on MacBook and iPad. Apple cited the surge in prices for components like chips.
Other major tech companies, which are buyers of semiconductors, also fell. Alphabet and Meta Platforms, for instance, both dropped more than 1%. Some concern may be arising that the margins of major tech companies could be crimped because of the rising price of chips.
May’s personal consumption expenditures price index — the Federal Reserve’s preferred inflation gauge — showed that the headline index rose 0.4% on the month, just below the 0.5% rise that economists polled by Dow Jones were expecting. The headline index also rose 4.1% on a yearly basis, in line with expectations.
Prices for the 10-year Treasury bounced, lowering yields to 4.40% from Wednesday’s 4.41%. Treasury prices and yields move in opposite directions.
Oil prices took on $1.60 to $71.94 U.S. a barrel.
Gold prices hopped $29.30 to $4,039.90. U.S. an ounce.
