S&P 500 Turns Red as Chip Sell-Off Returns Ahead of Micron Earnings

New York, NY - The S&P 500 Index (^SPX) dipped into negative territory on Wednesday, weighed down by a resurgence in the chip sector's sell-off as investors braced for Micron Technology's (MU) earnings report after the market close.

The Nasdaq Composite index (^IXIC) also pulled back, shedding 0.43% to end the session at 25,476.64. The S&P 500 (^SPX) declined 0.10% to 7,358.22, while the Dow Jones Industrial Average (^DJI) managed a gain, adding 182.06 points, or 0.35%, to close at 51,848.90.

The downturn in tech stocks follows a significant rout in the previous session, where the VanEck Semiconductor ETF (SMH) plunged 7%. Analysts suggest this pullback is a healthy recalibration of expectations, with some tech stocks having become overstretched.

Micron Technology (MU) shares, which had tumbled 13% on Tuesday, ended Wednesday down 0.3%. Fellow memory stock SanDisk (SNDK) dropped 2.5%. Investors are closely watching Micron's earnings for insights into the semiconductor industry's trajectory.

Analysts polled by FactSet expect Micron to report earnings of $20.83 per share on revenue of $35.75 billion. The company has experienced an astronomical run in 2026, reaching a new all-time high earlier in the week, but some strategists warn of a potential pullback post-earnings.

Energy shares also faced pressure as oil prices continued their decline. Brent crude futures lost 4.33% to settle at $73.74 per barrel, its lowest level since before the U.S. and Israel launched airstrikes against Iran. West Texas Intermediate (WTI) futures slid 3.92% to settle at $70.34 a barrel, also hitting a multi-month low.

Treasury yields fell in tandem with oil prices, with the 10-year note yield dropping below 4.5%. Major energy companies, including Exxon Mobil (XOM), Chevron (CVX), ConocoPhillips (COP), and SLB (SLB), saw their shares decline, with the State Street Energy Select Sector SPDR ETF (XLE) moving lower.

In other market news, Alphabet (GOOGL) shed earlier gains to close down 0.2% after S&P Global announced it would soon replace Verizon (VZ) in the Dow Jones Industrial Average.

Key Market Movements:**

• Nasdaq Composite (^IXIC): -0.43%
• S&P 500 (^SPX): -0.10%
• Dow Jones Industrial Average (^DJI): +0.35%
• Micron Technology (MU): -0.30%
• SanDisk (SNDK): -2.50%
• Brent Crude: -4.33%
• WTI Crude: -3.92%
• Alphabet (GOOGL): -0.20%

The market's focus now shifts to Micron's earnings and upcoming inflation data, which will likely shape investor sentiment in the coming days.