Micron Rally Lifts AI Shares as Apple Price Hikes Weigh on Wall Street

U.S. stocks ended mixed Thursday as Micron surged on stronger earnings and AI optimism, while Apple fell after raising prices on many products.

By yourNEWS Media Newsroom

U.S. stocks finished mixed Thursday as renewed strength in artificial intelligence-linked shares helped offset pressure from Apple, which fell after announcing price increases across several products.

The S&P 500 slipped less than 0.1% after moving between gains and losses throughout the session. The Dow Jones Industrial Average rose 0.1%, while the Nasdaq composite declined 0.5%.

Micron Technology helped support the market, surging 16.6% after the memory chipmaker reported quarterly profit and revenue that beat Wall Street expectations. The company also issued a stronger growth forecast for the current quarter, easing some investor concern that its stock had become too expensive after climbing 267% earlier this year.

Micron and other AI-related stocks had been under pressure recently as investors questioned whether earnings could keep pace with the sharp gains in share prices. The latest results from Micron provided new support for the sector.

Qualcomm also rose after saying late Wednesday that accelerating AI demand is pushing the company to raise its long-term growth outlook. The company said it expects revenue outside of handsets, including data centers, to reach $40 billion in fiscal 2029, about twice its previous target. Qualcomm shares gained 6.9%.

The strength in Micron and Qualcomm reflected continued investor interest in companies tied to AI data centers and related infrastructure spending.

Apple moved in the opposite direction. The company raised prices Thursday on many products, including Mac computers, with analysts estimating increases of 15% to 20%. Apple shares dropped 4.5%, making the stock the largest drag on the S&P 500.

Rising demand for computer memory and storage has helped lift companies that make those components, but it has also raised costs for companies that buy them. Apple’s price increases highlighted that pressure.

Treasury yields eased, giving the broader market some support. Bond yields moved lower after a report showed inflation largely matched economists’ expectations.

The report said a measure of inflation affecting U.S. consumers rose to 4.1% last month from 3.8% in April. Investors are watching whether inflation could ease in coming months as oil prices retreat from recent highs.

Brent crude, the international oil benchmark, rose 2% Thursday to $75.36 a barrel. Even with the increase, oil remained well below levels above $100 reached after the Strait of Hormuz was closed during the war, disrupting the global flow of oil. Earlier Thursday, Brent traded near $72, close to where it stood before the war.

The 10-year Treasury yield slipped to 4.39% from 4.41% late Wednesday and from 4.56% earlier this month.

“As long as gasoline prices trend lower, inflation expectations will likely follow suit,” said Brian Jacobsen, chief economic strategist at Annex Wealth Management.

Elevated bond yields have pressured global markets by raising borrowing costs for mortgages and other loans. Higher yields can also weigh on expensive stocks, including many AI-related companies whose share prices have risen quickly.

Overseas markets were mostly higher. South Korea’s Kospi jumped 5.4%, helped by gains in AI-linked stocks, including a 13.1% surge for SK Hynix.

Japan’s Nikkei 225 rose 4.6%, while the United Kingdom’s FTSE 100 gained 0.7%. Hong Kong’s Hang Seng fell 1.4%, standing out as one of the weaker major international indexes.