US Markets Mixed: Micron Surges on AI Optimism as Apple Shares Slide

Wall Street experienced a volatile trading session on Thursday as a massive rally in artificial intelligence-driven semiconductor stocks provided a lifeline to the Dow Jones. While chipmakers like Micron and Qualcomm drove gains, heavyweight Apple faced selling pressure following significant price hikes on its product lineup.

Micron and Qualcomm Lead the AI Chip Rally

The semiconductor sector emerged as the primary driver of market sentiment, helping to mitigate fears that AI-related stocks had become overvalued. Micron Technology was the standout performer, with its shares surging 9.7% after delivering a strong quarterly report. The memory-chip maker surpassed Wall Street's expectations for both profit and revenue, while simultaneously providing a revenue forecast for the current quarter that exceeded analyst estimates.

Qualcomm also joined the upward trend, gaining 3.1%. The company bolstered investor confidence by raising its long-term growth outlook, predicting that the rapid expansion of artificial intelligence will drive revenue from non-smartphone segments—such as data centers—to reach USD 40 billion by fiscal 2029. This momentum was echoed in Asian markets, where South Korea’s SK Hynix jumped 13.1%, contributing to a 5.4% surge in the Kospi.

Apple Faces Pressure from Price Hikes and Rising Costs

In contrast to the semiconductor boom, Apple shares plummeted 4.8%. The decline follows the tech giant's decision to increase prices across several key product categories. Analysts noted that Mac computers, in particular, saw price hikes ranging between 15% and 20%.

The company is facing a dual challenge: consumer pushback over higher retail prices and rising manufacturing expenses. As semiconductor companies benefit from higher memory and storage costs, device manufacturers like Apple are seeing their own production expenses climb, squeezing margins and complicating the pricing strategy for end-users.

Inflation Data and Treasury Yields Stabilize Markets

Broader market movement was further influenced by US economic indicators and energy prices. The Personal Consumption Expenditures (PCE) index, a key measure of US consumer inflation, rose to 4.1% in May from 3.8% in April. While this showed acceleration, the figure largely aligned with economists' expectations, preventing a market panic.

This stability helped ease Treasury yields. The benchmark 10-year US Treasury yield retreated to 4.36% from 4.41% on Wednesday, down from 4.56% earlier in the month. Additionally, Brent crude oil eased slightly to USD 73.81 per barrel, receding from previous highs seen during the Iran conflict. The softening in energy prices has fueled hopes that inflationary pressures might moderate in the coming months, providing a more predictable environment for investors.

Key Takeaways

• AI Momentum Sustains Chipmakers: Micron’s strong earnings and Qualcomm's ambitious $40 billion non-smartphone revenue target helped offset broader tech volatility.
• Apple's Margin Squeeze: Significant price increases on Mac computers (up to 20%) and rising component costs have pressured Apple’s stock performance.
• Macroeconomic Stability: Inflation data matching expectations and easing Treasury yields have provided a cautious layer of support for global markets.