Nasdaq Plunges on Apple, Microsoft Price Hikes as Dow Sets Record Amid Divided Market

The U.S. stock market experienced a notable divergence on Thursday, with the tech-heavy Nasdaq Composite declining for a fourth consecutive day, its longest losing streak since February. Major technology stocks faced a sell-off, spearheaded by Apple and Microsoft, despite a strong earnings report from chipmaker Micron Technology. Conversely, the Dow Jones Industrial Average surged to a new all-time intraday high, propelled by gains in non-artificial intelligence sectors.

The Nasdaq Composite dropped 0.46% to close at 25,358.60, while the S&P 500 edged down 0.01% to 7,357.49. In stark contrast, the 30-stock Dow Jones Industrial Average climbed 71.72 points, or 0.14%, to end at a record 51,920.62. The Dow's ascent was primarily fueled by strong performances in healthcare, financial, and industrial stocks, with Johnson & Johnson rising approximately 1% and Caterpillar jumping a significant 6%.

Shares of Apple led the Nasdaq's downturn, plummeting 6% after the company announced price increases for its MacBook and iPad products, citing a surge in component costs like chips. Microsoft also saw its shares decline by 3.5% following its decision to raise prices on Xbox consoles.

Other prominent technology firms, particularly those that are major buyers of semiconductors, also experienced losses. Alphabet and Meta Platforms fell by nearly 1% and over 2%, respectively. This broad decline fueled concerns that escalating chip prices could squeeze the profit margins of large tech companies.

Jed Ellerbroek, a portfolio manager at Argent Capital Management, warned of potential 'spillover effects' from rising inflation in technology supply chains, predicting higher prices for various electronic goods, including TVs and cars. However, he also noted that the current consumer market appears 'strong enough to absorb these price increases.'

Inflation data for May offered a mixed but generally reassuring picture. The personal consumption expenditures (PCE) price index, the Federal Reserve's preferred inflation gauge, rose 0.4% month-over-month, slightly below the 0.5% expected by Dow Jones economists. Annually, the headline index matched expectations with a 4.1% increase.

Excluding volatile food and energy components, core PCE increased 0.3% monthly and 3.4% year-over-year, both in line with economists' predictions. While core inflation reached its highest level since October 2023, investors were relieved that the figures weren't higher, especially given rising energy prices amid the Middle East conflict. Treasury yields edged lower, with the benchmark 10-year note trading at 4.396%. Ellerbroek summarized the situation by stating, 'Inflation is too high, but it's not out of control.'

Counteracting some of the market's downward pressure, Micron Technology saw its stock surge almost 16% after the chipmaker reported fiscal third-quarter results that significantly surpassed analysts' expectations. Fellow semiconductor company Qualcomm also gained nearly 4% after raising its guidance for non-handset revenue in fiscal 2029, boosting other chip-related stocks such as Sandisk, Western Digital, KLA, and Applied Materials.

Nasdaq Closes Lower Amid Tech Sell-Off

The Nasdaq Composite experienced a downturn on Thursday, closing 0.46% lower at 25,358.60. The S&P 500 also slipped 0.01% to 7,357.49, while the Dow Jones Industrial Average defied the trend, adding 71.72 points (0.14%) to finish at 51,920.62.

Morgan Stanley Advises Caution on Affirm Holdings

Morgan Stanley analysts have opted to step to the sidelines regarding Affirm Holdings shares, citing that the market has largely priced in the fintech company's durable growth, funding, and credit quality. While acknowledging Affirm's high-quality assets and management, analysts believe the stock price already reflects the positive outlook, suggesting a wait for a lower entry point or stronger profit projections for 2028.

IBM Unveils Breakthrough in Microchip Technology

IBM announced new technology capable of producing microchips smaller than one nanometer, a significant development in the race to build semiconductors for demanding AI workloads. The news briefly sent IBM's stock higher by over 2% before it reversed course. The company anticipates production could begin within the next five years, despite its shares being down 11% over the past 12 months.

Bio-Techne Surges on $11.3 Billion Merck Acquisition

Bio-Techne shares jumped 19% after agreeing to be acquired by German drugmaker Merck for $73 per share in cash, valuing the deal at $11.3 billion. The acquisition aims to bolster Merck's life sciences business. Merck's shares also rose 4% following the announcement, with the transaction expected to close by late 2026 or early 2027.

Microsoft Shares Tumble After Xbox Price Hike

Microsoft's stock fell to session lows, last down 3.8%, after the company announced price increases for its Xbox consoles, raising the 512-gigabyte model by $100 and the 1 terabyte version by $150. Microsoft stated that consoles are typically not sold at a profit, but rather below manufacturing cost.

Bayer ADR Gains on Supreme Court Victory

Shares of Bayer's American Depositary Receipt soared 16% on Thursday following a Supreme Court ruling that the German company is not obligated to warn customers about the health risks associated with its Roundup weedkiller. This 7-2 decision largely shields Bayer from numerous state-level lawsuits, after paying billions in 2020 to settle previous allegations that Roundup caused cancer.

European Stocks Rebound on Positive Sentiment

European equity markets closed in positive territory on Thursday, recovering from several days of choppy trading. The pan-European Stoxx 600 rose 0.8%, with London's FTSE 100 adding 0.65%, France's Cac 40 gaining 0.6%, and Germany's DAX rising 1%. Healthcare and utilities sectors led the gains across Europe.

Iran's Oil Export Capacity Returns to Biden-Era Levels

Energy Secretary Chris Wright announced Thursday that Iran is expected to resume exporting between 1.5 million and 2 million barrels of oil per day, similar to volumes seen during the Biden administration, following the lifting of U.S. sanctions. This allows Iran to sell crude beyond China and receive compensation in U.S. dollars, a move Wright described as a 'little bit more freedom, but not a lot.'

Non-Tech Giants Drive Dow's Record Performance

The Dow Jones Industrial Average hit an intraday record of 52,655.66 on Thursday, propelled primarily by five non-technology stocks. These included Caterpillar (contributing 321 points), Goldman Sachs (130 points), UnitedHealth (55 points), Sherwin-Williams (53 points), and JPMorgan (53 points), highlighting a market shift away from the tech sector.

McCormick Shares Rise on Strong Earnings

McCormick shares climbed after the spice manufacturer reported better-than-expected second-quarter results. Adjusted earnings reached 80 cents per share (versus an LSEG consensus of 69 cents), with revenue hitting $1.94 billion (above the $1.91 billion estimate). These results were attributed to robust consumer demand for spices and the company's upcoming merger with Unilever. Despite the Thursday gain, McCormick shares are down 28% year-to-date.

SpaceX Shares Dip in Broader Tech Sell-Off

As the broader tech market slumped, SpaceX shares also experienced a downturn, falling approximately 1% on Thursday. This extended a similar decline from Wednesday, with the stock trading above $153 after briefly nearing $150 in early session lows.

Apple Leads Broader Tech Stock Retreat

Apple shares led a significant rollover in tech stocks during early Thursday trading, falling over 4%. Other major tech names, including Nvidia and Amazon, also lost more than 2% each, while Microsoft, Meta Platforms, and Alphabet shed more than 1% each, signaling a widespread retreat in the sector.

Micron Briefly Overtakes Meta and Tesla in Market Cap

Micron's valuation surged on Thursday following its stellar earnings report, with its market cap reaching $1.3 trillion and briefly surpassing Meta Platforms and Tesla's valuations, peaking at $1.4 trillion earlier in the day. However, its market cap later receded below those of the megacap companies.

U.S. Stocks Open Higher on Thursday

All three major U.S. averages started Thursday's trading session in positive territory. The S&P 500 and Nasdaq Composite each climbed 0.8% and 1%, respectively, shortly after the opening bell, while the Dow Jones Industrial Average advanced 316 points, or 0.6%.

Trip.com Group Shares Fall on Disappointing Earnings and Outlook

Trip.com Group's U.S.-listed shares tumbled 12% on Thursday after the travel service provider reported first-quarter Non-GAAP EPADS of CNY5.73 ($0.84), missing the StreetAccount consensus of CNY6.07 ($0.89). The company also issued a weaker-than-expected second-quarter revenue forecast of CNY15.31-16.05 billion, below FactSet's estimate of CNY17.19 billion.

Micron, Qualcomm, Wendy's, Bio-Techne Active in Premarket Trading

Key movers in premarket trading included Micron, which jumped 17% on blockbuster third-quarter earnings, and Qualcomm, which rose 9% after significantly increasing its 2029 non-handset revenue projection. Wendy's shares popped 7%, extending a meme stock-driven rally, while Bio-Techne rallied 19% following news of its acquisition by Merck.

Core PCE Reaches Highest Level Since October 2023

The core personal consumption expenditures price index, a key inflation gauge, rose 3.4% in May from the prior year, marking its highest level since October 2023. Despite this, the figure remained in line with economists' expectations.

Darden Restaurants Shares Decline on Weak Guidance

Darden Restaurants, owner of Olive Garden and Seasons 52, saw its shares fall 2% in premarket trading. Although the company delivered a slight earnings beat and in-line revenue for its fiscal fourth quarter, its fiscal 2027 earnings forecast of $11.10 to $11.35 per share fell short of FactSet's consensus estimate of $11.39. Weaker-than-expected same-store sales at Olive Garden (up just 2.4%) also contributed to the decline.

Wendy's Continues Meme Stock Surge

Wendy's shares popped another 13%, adding to a more than 25% rally from the previous session, as retail enthusiasm continued to fuel gains for the fast-food chain. Thursday's advance pushed the stock up nearly 32% for the week.

Micron Stock Soars 16%+ in Premarket After Blockbuster Earnings

Micron shares surged over 16% in premarket trading on Thursday following its release of blockbuster fiscal third-quarter earnings. The memory maker reported revenue that more than quadrupled year-over-year to $41.46 billion, significantly exceeding analyst expectations of nearly $36 billion. The company also forecasted robust current-quarter revenue of approximately $50 billion. Micron's stock has risen a staggering 723% over the past year, pushing its market capitalization to $1.2 trillion.

European Markets Lifted by Micron's Earnings Beat

European markets moved higher in Thursday morning trading, with the pan-European Stoxx 600 gaining around 0.5%. The regional Stoxx 600 Tech index notably jumped 2.4% following Micron's strong earnings report. Semiconductor materials maker Soitec led gains with a 6.5% jump, while Infineon, ASMI, and Be Semiconductor all added more than 5%. Low-cost carrier EasyJet also saw its shares rise by about 5.5% after rejecting a $6.5 billion takeover bid from Castlelake.

Asian Stocks Advance, Led by South Korea and Japan

Japanese and South Korean stocks advanced on Thursday, recovering from an earlier tech rout in the week. Japan's Nikkei 225 surged 4.61% to 72,366.34, with SoftBank up 7.9%. South Korea's Kospi jumped 5.42% to 8,930.30, with SK Hynix soaring 13% and Samsung gaining 5.29%. Hong Kong's Hang Seng Index declined 1.6%, while mainland China's CSI 300 rose 1.56%. Australia's S&P/ASX 200 was down 0.68%.

HSBC Survey: Investors Value Human Advice Over AI for Final Decisions

A survey by HSBC indicates that investors continue to prioritize professional financial advisors for their final investment decisions, even as they increasingly use artificial intelligence for initial research. The survey of 10,000 affluent and high-net-worth individuals across 10 markets found that 62% rely on financial professionals for investment ideas, and 37% cited human experts as the greatest influence on their ultimate investment choices, a figure three times higher than those who credited AI.

Trip.com's Shares Fall Over 6% on Q1 Net Income Drop and Monopoly Probe

Trip.com's Hong Kong-listed shares fell over 9% after the online travel service provider reported a 41% decline in its first-quarter net income for 2026 to 2.5 billion yuan ($367 million), partly due to share-based compensation. The company also faces an ongoing investigation from China's State Administration for Market Regulation into alleged monopolistic practices, which could result in significant fines and business practice changes.

Alibaba Shares Decline Amid Anthropic AI 'Distillation Attack' Accusations

Alibaba's Hong Kong-listed shares dropped over 4% after Anthropic accused the Chinese tech giant of 'brazenly' and 'illicitly' attempting to extract its artificial intelligence capabilities. Anthropic alleged that Alibaba carried out 'the largest known distillation attack on Anthropic to date,' emphasizing the need for coordinated action between government and industry to combat such threats and maintain American AI leadership. Distillation refers to an AI training method where a smaller model learns from the outputs of a larger, more capable model.

Oil Prices Retreat to Pre-Wartime Levels as Hormuz Traffic Resumes

Oil prices erased their wartime gains on Thursday, with U.S. crude for August delivery falling 1.66% to around $69 a barrel and Brent declining 1.79% to below $73 a barrel. This return to pre-Middle East war levels comes as concerns over global crude supplies eased, with over 20 oil tankers carrying approximately 35 million barrels of crude having passed through the Strait of Hormuz since the U.S. and Iran agreed to reopen the crucial shipping route after months of blockage.

SK Hynix Surges 11% on Plans for Blockbuster Nasdaq Listing

South Korean chip giant SK Hynix saw its shares jump 11% on Thursday after announcing plans for a Nasdaq listing to raise up to $29.4 billion. The company intends to issue 17.79 million new shares in the form of American depositary receipts, with trading expected to commence on July 10. SK Hynix aims to broaden its investor base and enhance its global presence as a key player in AI technological innovation.

South Korea's Kospi Leads Gains in Broad Asia-Pacific Rally

Asia-Pacific markets traded broadly higher early Thursday, with South Korea's Kospi leading the charge with an advance of more than 5% near the open. Shares of SK Hynix soared over 10%, and Samsung gained approximately 5%, prompting South Korea to trigger its Sidecar market-stabilization mechanism. Japan's Nikkei 225 added 1.28%, while Australia's S&P/ASX 200 was marginally lower.

Asia-Pacific Markets Eye U.S. Inflation Data After Tech Rout

Asia-Pacific markets were set to open mixed on Thursday, navigating the aftermath of an earlier tech rout while anticipating crucial U.S. inflation data for May. Japan's Nikkei 225 was poised to rise, while Hong Kong's Hang Seng index futures indicated a lower opening. Easing tensions in the Middle East, with oil tankers resuming traffic through the Strait of Hormuz, also contributed to the market sentiment.

Industrials Lead Gains in Divided Wednesday Session

Six of the 11 GICS sectors ended Wednesday's session higher. Industrial stocks led the gains with a 1.18% increase, followed by utilities, consumer discretionary, and healthcare, which added 1.05%, 0.80%, and 0.79% respectively. Conversely, energy stocks performed the worst, shedding 1.73%, and information technology stocks continued their sell-off, dropping 0.64%.

Chip Stocks Rally in After-Hours Trading, Boosted by Micron

Chip stocks surged in Wednesday's after-hours session, significantly lifted by Micron's impressive fiscal third-quarter earnings beat. Micron shares jumped almost 15% after reporting adjusted earnings of $25.11 per share on $41.46 billion in revenue, both exceeding expectations. The company also issued an optimistic current-quarter revenue forecast of $50 billion. Fellow semiconductor firm Qualcomm gained 14% after raising its 2029 targets, leading other chip names like Sandisk, Western Digital, Lam Research, KLA, and Applied Materials to also rise in sympathy.

Stock Futures Tick Higher Wednesday Evening

Stock futures showed gains on Wednesday evening. Shortly after 6 p.m. ET, S&P 500 futures climbed 0.7%, Nasdaq 100 futures rose 1.9%, and Dow futures added 102 points, or 0.2%, signaling a potentially positive start to the next trading day.