The U.S. stock market experienced mixed results Thursday, with notable movements among tech stocks, particularly those linked to artificial intelligence (AI). The S&P 500 index fell by 0.3% after recovering from an initial gain of 0.8%, while the Dow Jones Industrial Average saw a modest increase of 228 points, or 0.4%. In contrast, the Nasdaq composite index dropped by 1.2%.
Micron Technology emerged as a key driver of the market after its shares surged by 9.7%. The company, known for producing memory chips, reported earnings that significantly exceeded analysts’ expectations. Its revenue for the latest quarter came in notably stronger than anticipated, prompting an optimistic growth forecast for the upcoming quarter. This positive news helped to alleviate concerns regarding Micron’s high stock valuation, which surged by 267% earlier this year.
While Micron’s performance was a bright spot, AI stocks, in general, faced scrutiny due to fears that their profit margins may not keep pace with their stock price surges. However, Qualcomm’s announcement sustained some optimism in the sector; the company indicated that it would be revising its growth forecasts upward due to the accelerating demands of the AI landscape. Qualcomm’s stock climbed by 3.1% on the news.
In a contrasting trend, Apple experienced a significant decline, with its shares dropping by 4.8%. The tech giant announced substantial price hikes for several of its products, including an increase of 15% to 20% for Mac computers. This move raised concerns about potential impacts on consumer demand amidst a backdrop of rising costs.
The broader U.S. stock market saw some support from a drop in Treasury yields following a report suggesting that inflation remained largely in line with economists’ expectations. The yield on the 10-year Treasury note slipped to 4.36%, down from 4.41% the previous day.
In the commodities market, Brent crude oil prices fell slightly by 0.1% to $73.81 per barrel. This figure is significantly lower than the highs exceeding $100 earlier this year, which were influenced by geopolitical tensions affecting oil supplies. Although inflation had spiked in part due to those earlier oil price increases, a recent report indicated that inflation for U.S. consumers rose to 4.1% last month, up from 3.8% in April, yet this was in line with expectations and brought hopes for easing inflation in future months.
Internationally, South Korea’s Kospi index surged by 5.4%, propelled by strong performances from its AI-related stocks, particularly SK Hynix, which saw a remarkable 13.1% rise. Other markets also recorded gains, with Japan’s Nikkei 225 advancing by 4.6% and the UK’s FTSE 100 rising by 0.6%. Conversely, Hong Kong’s Hang Seng index experienced a decline of 1.4%.
Overall, mixed performance characterizes the current landscape of the stock market, reflecting ongoing fluctuations influenced by earnings reports, shifting inflation forecasts, and geopolitical developments.
