Wall Street experienced mixed trading on Thursday, with technology stocks diverging sharply as Micron Technology surged on better-than-expected earnings while Apple declined amid regulatory pressures. The Dow Jones Industrial Average edged up 0.1%, while the S&P 500 slipped 0.2% and the Nasdaq Composite fell 0.4%.
Micron leads semiconductor rally
Micron Technology jumped 8.3% after reporting quarterly results that exceeded analyst forecasts, driven by strong demand for memory chips used in artificial intelligence applications. The company also issued an optimistic revenue outlook for the current quarter, boosting the broader semiconductor sector. Other chipmakers like Nvidia and AMD also gained, rising 1.2% and 0.9% respectively.
According to analysts at Wedbush Securities, “Micron’s results underscore the robust demand cycle for memory chips, particularly from AI data centers, which should support further upside.”
Apple drops on antitrust fears
Apple shares fell 2.1% after reports emerged that the U.S. Department of Justice is preparing a broad antitrust lawsuit against the company, targeting its App Store policies and hardware-software integration. The potential legal action has raised concerns about regulatory risks for the tech giant, which has already faced scrutiny in Europe and other markets.
The decline in Apple weighed on the technology sector, offsetting gains from Micron and other chip stocks. Apple’s market capitalization dropped by approximately $60 billion following the news.
Broader market sentiment cautious
Investors remained cautious amid ongoing uncertainty about interest rates and inflation. The yield on the 10-year Treasury note edged up to 4.35%, reflecting expectations that the Federal Reserve may keep rates higher for longer. Data released Thursday showed initial jobless claims rose slightly to 220,000, while durable goods orders fell 0.6% in May, suggesting a cooling economy.
Energy stocks were among the best performers as oil prices climbed 1.5% to $82 per barrel, supported by supply concerns. Exxon Mobil and Chevron both rose over 1%.
Other notable movers
In other corporate news, FedEx shares gained 3.2% after the delivery company reported stronger-than-expected quarterly earnings and announced a cost-cutting plan. Conversely, Walgreens Boots Alliance fell 4.5% after cutting its full-year profit forecast due to weaker consumer spending.
European markets also traded mixed, with the Stoxx 600 index flat as investors weighed economic data and corporate earnings. Asian markets closed mostly higher, led by gains in Japan’s Nikkei 225, which rose 0.8%.
