U.S. stock indexes finished mixed on Thursday, with the S&P 500 slipping to a two-week low as weakness in large-cap technology offset early gains from chipmakers. The Nasdaq 100 climbed, while the Dow Jones Industrial Average hit a new all-time high, as investors continued to weigh the latest batch of economic data and signals around the timing of potential rate moves.
Apple shares fell after the company raised prices across parts of its product lineup, while software stocks also dragged on sentiment. At the same time, stronger-than-expected forecasts from Micron and Qualcomm supported the artificial intelligence trade, helping lift chip and AI infrastructure names and keeping broader risk appetite intact.
Key takeaways
- Indexes closed mixed: the S&P 500 fell slightly, the Dow rose to a record, and the Nasdaq 100 gained, reflecting diverging performance between mega-cap tech and chip-linked stocks.
- Catalysts were split: Apple’s pricing move and broad software weakness pressured parts of the market, while AI-related earnings forecasts from Micron and Qualcomm provided support.
- Macro tone stayed constructive: data that suggested economic resilience and inflation broadly in line with expectations supported risk assets.
- Rates and energy mattered: Treasury yields eased after the May core PCE report, while oil rebounded on renewed geopolitical concerns.
- Investor focus remains on policy probabilities: markets continued to price a meaningful chance of a rate hike at the next FOMC meeting.
What drove the move
The day’s market action was shaped by two competing forces: a pullback in parts of mega-cap technology and renewed momentum in semiconductor and AI infrastructure stocks.
On the downside, the Magnificent Seven weighed on the S&P 500. Apple fell more than 6% after raising prices for Macs, iPads, home devices, and the Vision Pro, citing cost increases tied to a shortage of memory chips and storage. Other major technology names also ended lower, including Amazon.com and Microsoft, while Meta Platforms, Nvidia, Alphabet, and Tesla declined as well. Software stocks added pressure with broad declines across names such as Atlassian, Palantir Technologies, ServiceNow, and Workday, among others.
Offsets came from chipmakers and AI supply-chain exposure. According to market reports summarized in Thursday’s trading coverage, Micron Technology surged more than 15% after issuing a forecast for Q4 revenue of $50 billion, above consensus expectations. Qualcomm rose more than 3% after projecting annual sales above $15 billion from artificial intelligence components for data centers by fiscal 2029. The strength extended to other semiconductor and equipment-linked stocks, including Sandisk, Applied Materials, KLA, Lam Research, Western Digital, and ASML.
Support for equities also came from U.S. economic data. The report said Q1 GDP was revised higher, weekly jobless claims declined more than expected, and May personal spending and income came in stronger than forecasts. Capital goods new orders also rose more than expected, a development investors typically read as consistent with a stable demand backdrop.
Inflation news further eased the pressure on yields. The May core PCE price index—described as the Fed’s preferred inflation gauge—rose in line with expectations year over year, helping Treasuries hold gains and keeping a key rate-sensitive segment of the market supported. The 10-year Treasury yield fell to a six-week low of 4.36%, according to Thursday’s coverage.
Market reaction: yields, oil, and global equities
Bond trading reflected a balance between benign inflation signals and macro growth prints. The report said the 10-year T-note yield fell to a six-week low and that prices rose to a six-week high. Support was attributed to the May core PCE outcome and also to oil’s earlier weakness; however, the report noted that stronger labor and growth indicators were potentially bearish for T-note prices.
Oil prices added a separate layer of volatility. WTI crude rebounded more than 2% after trading off a four-month low, which the report said weighed on broader sentiment. The move was linked to renewed tensions in the Persian Gulf. The report cited a UK maritime update indicating a cargo vessel was hit by an unknown projectile off the coast of Oman in the Strait of Hormuz, following incidents involving other vessels that had turned around while attempting to transit the area. The report also referenced maritime intelligence broadcasts attributed to the Iranian navy instructing ships not to cross.
Overseas, equities finished higher. The report said the Euro Stoxx 50 ended up, China’s Shanghai Composite closed modestly higher, and Japan’s Nikkei-225 advanced sharply.
Notable movers and sector performance
Apple and software drag on tech-heavy indexes: Apple led decliners after its pricing update. Alongside it, multiple mega-cap and software names ended lower, contributing to the S&P 500’s retreat toward a two-week low.
AI and semiconductor strength lifted the Nasdaq: Micron’s forecast and Qualcomm’s projection for AI-related data center components helped lift chipmakers and AI infrastructure names, contributing to the Nasdaq 100’s stronger close.
Other corporate news drove single-stock moves: The report said Merck & Co agreed to buy Bio-Techne, sending the biotech-related stock up more than 20%. Xylem rose after a Jeffries upgrade. Keurig Dr. Pepper gained following a Barclays upgrade, while McCormick & Co climbed after reporting Q2 net sales above consensus. Several companies fell on earnings misses or downgrades, including Trip.com ADRs, Jeffries Financial Group, and Dell Technologies, among others. The report also noted HB Fuller’s agreement to buy Advance Medical Solutions Group, which pressured the stock it targeted and moved the acquirer’s shares higher.
Bigger picture: rates, inflation, and policy odds
With investors digesting a Fed-preferred inflation measure that landed at expectations, the near-term focus remained on how much weight to place on upcoming policy decisions. The report said markets were discounting a 32% chance of a 25 basis point rate hike at the next FOMC meeting on July 28–29.
In Europe, the report cited swaps pricing a 6% chance of a 25 basis point ECB rate hike at its next meeting on July 23, underscoring that global policy expectations continued to diverge across regions.
Heading into the next session, investors will likely watch whether megacap tech weakness persists while chip and AI infrastructure momentum holds. Additional corporate earnings due on June 26, 2026, including Apogee Enterprises and Anavex Life Sciences, could further influence sector leadership. Traders will also continue monitoring Treasury yields and energy prices as geopolitical developments feed back into inflation expectations.
