Micron’s blowout print confirmed that memory prices are climbing fast, a windfall for chipmakers and equipment suppliers but a fresh margin threat for the companies that have to buy those chips.
The May core PCE price index rose to 3.4% on the year, while the headline PCE hit 4.1% — the highest since April 2023. Both readings matched expectations, with the odds of a Fed increase in September falling to 63% from 68% the prior day.
Across U.S. equity markets by midday Thursday, the moves were sharply uneven beneath the index-level calm. The Dow Jones Industrial Average climbed about 171 points, or 0.3%, to 52,019.
The Nasdaq 100 added 0.4% to 29,332, but the gain masked a deep split among megacaps.
Crude oil rebounded after three weeks of declines. West Texas Intermediate rose 1.9% to around $71.65 a barrel, while Brent added 1.4% to roughly $74.74, both still near levels last seen before the conflict.
Thursday’s Performance In Major US Indices
According to the Benzinga Pro platform:
Memory Boom Splits Tech As Industrials Lead, Discretionary Lags
The Industrials Select Sector SPDR Fund (NYSE:XLI) led the tape with a 2.1% gain.
Qualcomm Inc. (NASDAQ:QCOM) also rose after doubling its non-handset revenue projection and announcing a Meta partnership.
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The U.S. stock market pushed higher on Thursday as a blockbuster earnings beat from Micron Technology Inc. (NASDAQ:MU) reignited the artificial-intelligence chip trade. Still, a surge in memory-chip prices punished Apple Inc. (NASDAQ:AAPL) and other hardware makers.
Gold firmed 0.8% to around $4,032 an ounce, with the SPDR Gold Shares (NYSE:GLD) tracking the bounce, while Bitcoin (CRYPTO: BTC) slid 2.8% to around $59,155.
| Index | Last | % Change |
|---|---|---|
| S&P 500 | 7,343.89 | -0.2% |
| Dow Jones | 52,019.45 | +0.3% |
| Nasdaq 100 | 29,331.82 | +0.4% |
| Russell 2000 | 3,000.53 | +0.5% |
The laggards clustered in consumer and communications names. The Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY) fell 1.2%, the worst-performing sector, dragged by Amazon, while the Communication Services Select Sector SPDR Fund (NYSE:XLC) lost 0.8% as Meta Platforms Inc. (NASDAQ:META) slipped.
The Consumer Staples Select Sector SPDR Fund (NYSE:XLP) fell 0.5%, and the Technology Select Sector SPDR Fund (NYSE:XLK) eked out a 0.1% gain as soaring chip names offset heavy losses in Apple and software.
At the industry level, the VanEck Semiconductor ETF (NASDAQ:SMH) outperformed, up 2.5%, as memory and wafer-fab equipment names rallied, while the iShares Expanded Tech-Software Sector ETF (BATS:IGV) lagged, down 1.6%, as investors rotated out of high-multiple software and into AI-infrastructure plays.
The session’s anchor was Micron Technology Inc. (NASDAQ:MU), which soared about 14.8% after beating earnings and guiding to roughly $50 billion in revenue for the August quarter, well above the roughly $43.2 billion consensus, while unveiling 16 longer-term supply contracts.
NAND specialist Sandisk Corp. (NASDAQ:SNDK) — the S&P 500’s top performer of 2026 — jumped about 17.4% on the same memory thesis, riding acute NAND shortages, data-center demand, and a shift to multi-year, fixed-price contracts, though the move whipsawed intraday on profit-taking.
Equipment supplier Applied Materials Inc. (NASDAQ:AMAT) rallied about 9.7% after launching six new chipmaking systems aimed at DRAM production and advanced AI packaging, with Micron’s results adding a capex tailwind.
The Other Side of the Memory Trade? Brutal.
Thursday’s Russell 1000 Top Gainers
| Name | % change |
|---|---|
| Acuity Inc. | +21.5% |
| Bio-Techne Corp. | +19.7% |
| Sandisk Corp. | +17.4% |
| Micron Technology Inc. | +14.8% |
| Applied Materials Inc. | +9.7% |
Thursday’s Russell 1000 Top Losers
| Name | % change |
|---|---|
| Jefferies Financial Group Inc. | -9.5% |
| Strategy Inc. | -9.2% |
| Duolingo Inc. | -8.7% |
| Elastic N.V. | -8.7% |
| Dell Technologies Inc. | -6.3% |
Corning Inc. (NYSE:GLW) climbed about 9.1% on a multibillion-dollar deal to supply Amazon with optical fiber and connectivity for U.S. data centers, prompting UBS and Truist to lift their price targets.
The day’s two standout movers came from outside the chip story. Acuity Inc. (NYSE:AYI) surged about 21.5%, the biggest gainer in the Russell 1000, after fiscal third-quarter results topped estimates with EPS of $5.31 against the $5.12 consensus and revenue of $1.2 billion.
Bio-Techne Corp. (NASDAQ:TECH) jumped nearly 20% after Merck KGaA agreed to acquire the life-science tools maker for $11.3 billion, or $73 per share in cash, a roughly 24% premium.
Apple slid 6.3% after the company was forced to raise iPad and Mac prices to offset rising memory costs, while Dell Technologies Inc. (NYSE:DELL) dropped about 6.3% after Morgan Stanley downgraded the stock, citing margin pressure from surging DRAM costs across its server and PC businesses.
The biggest decliner was Jefferies Financial Group Inc. (NYSE:JEF), down about 9.5% after second-quarter results missed, with EPS of $1.03 against the $1.17 consensus and revenue of $2.21 billion below the roughly $2.32 billion expected.
Strategy Inc. (NASDAQ:MSTR), the largest corporate holder of Bitcoin, fell about 9.2% in lockstep with the cryptocurrency’s 2.8% slide.
High-multiple software stayed under pressure. Duolingo Inc. (NASDAQ:DUOL) fell about 8.7% after Jefferies urged selectivity on the name, flagging AI-disintermediation risk and elevated spending. Elastic N.V. (NYSE:ESTC) dropped about 8.7% as well, extending a roughly 23% slide over the past week in the wake of its mixed quarterly results.
