The New York stock market closed mixed on June 25, as strong earnings from Micron fueled optimism for AI semiconductor investments, but weakness in major tech stocks, including Apple, limited index gains.
The Dow Jones Industrial Average rose by 71.72 points, or 0.14%, finishing at 51,920.62. The S&P 500 fell by 0.73 points, or 0.01%, to close at 7,357.49, while the Nasdaq Composite dropped 118.04 points, or 0.46%, ending at 25,358.60.
Market dynamics were marked by a contrast between strong semiconductor stocks and weak performance from large tech companies. Micron surged 16.6% after reporting earnings and forecasts that exceeded market expectations, driven by robust demand for memory due to expanded AI server investments.
Qualcomm also rose by 6.9% as it projected growth in its AI-related data center business. The rebound in some semiconductor stocks eased recent concerns over a correction in the tech sector.
However, Apple weighed heavily on the overall index. The company raised prices on some products, including MacBooks and iPads, citing increased costs for memory and storage. This led to heightened concerns about a potential decline in demand, causing Apple shares to drop by 4.5%. Nvidia also faced losses, further limiting the tech sector's recovery.
Economic indicators released by the U.S. Commerce Department showed that the Personal Consumption Expenditures (PCE) price index rose by 4.1% in May compared to the same month last year. The core PCE price index, excluding energy and food, increased by 3.4% year-over-year and by 0.3% from the previous month, marking the highest rate since October 2023.
While inflation indicators remained elevated, they aligned closely with market expectations, leading to a decline in Treasury yields. The yield on the 10-year U.S. Treasury note fell from 4.41% to around 4.39%. Although interest rate pressures eased somewhat, rising core inflation kept the possibility of further rate hikes by the Federal Reserve as a variable in the market.
International oil prices rose but remained significantly lower than recent highs due to geopolitical tensions. Brent crude traded in the $75 range per barrel, while West Texas Intermediate (WTI) was around $72. Expectations that tensions in the Middle East may ease contributed to a calming of energy price shocks.
Experts noted that while demand for AI semiconductors supports the lower end of the market, high valuations of large tech stocks and inflationary pressures are simultaneously exerting pressure on the market. This week, the New York stock market is navigating expectations for semiconductor earnings, uncertainties in Federal Reserve policy, and fluctuations in energy prices from the Middle East, leading to a differentiated performance among stocks.
* This article has been translated by AI.
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