Tech stocks fluctuated on Thursday as blowout Micron (MU) earnings failed to bolster sagging confidence in the AI trade and a fresh inflation report showed prices rising again in May.
The tech-heavy Nasdaq Composite (^IXIC) slipped 0.6% after rising earlier in the session, while the S&P 500 (^GSPC) hovered near the flat line following several tough days for Wall Street stocks. The Dow Jones Industrial Average (^DJI), which includes fewer tech names, climbed 0.2%.
Micron’s record-setting quarterly results relieved Wall Street jitters over lofty AI valuations and spending. Shares of the memory chip maker rocketed more than 15% after the company’s blowout earnings beat and guidance.
Meanwhile, Qualcomm (QCOM) announced a move beyond smartphones into data center products such as chips and servers, in a bid to cash in on the AI boom. Its stock rose about 7% after it set a target of $15 billion in related new revenue.
In another lift to spirits, oil prices hovered near levels not seen since the Iran war as supply flowed back out through the Strait of Hormuz. Brent crude futures (BZ=F) rose slightly to $75 a barrel, while West Texas Intermediate futures (CL=F) were at around $71.
Focus also shifted to the latest reading of the Personal Consumption Expenditures (PCE) index, the Federal Reserve’s preferred measure of inflation. It showed prices heated up again in May amid the shock from the Iran war. PCE rose 4.1% on an annualized basis, while a 0.4% month over month gain came in slightly below expectations.
That’s likely to keep the debate about an interest rate hike in play this year.
