US stock futures were mixed overnight on Thursday, primarily influenced by a continued decline in technology stocks and a higher-than-expected Personal Consumption Expenditures (PCE) Index reading. The PCE Index, the Federal Reserve's preferred inflation gauge, advanced 4.1% in May on an annualized basis, marking the highest level since October 2023. Core PCE, excluding food and energy, rose 3.4% annually in April. Despite these concerns, S&P 500 futures gained 0.03% and Dow futures were up 0.21%, while Nasdaq 100 futures declined 0.20% by 9:20 PM EDT.
Thursday's trading session saw a mixed outcome for major indexes. The Dow Jones Industrial Average added more than 70 points, closing up 0.14%, bolstered by gains in industrials, financials, and healthcare sectors. In contrast, the Nasdaq Composite index shed 118 points, or 0.46%, due to broad tech weakness. The S&P 500 ended flat. This marked the Dow's third consecutive week of gains, while the Nasdaq was headed for its third week of declines, and the S&P 500 was also poised to end the week lower.
Big tech companies experienced significant losses. Apple Inc. (AAPL) shares plunged more than 6% after increasing prices for iPads and MacBooks, citing rising memory and storage chip costs. Microsoft Corp. (MSFT) declined by over 3% after raising prices for Xbox gaming consoles, also due to surging component costs, leading Stifel to lower its price target on Microsoft to $400 from $415. Amazon.com (AMZN) fell over 3%, and Meta Platforms (META) dropped more than 2%, with other "Magnificent Seven" stocks also closing in the red. Conversely, chip stocks saw a strong performance, with Micron Technology (MU) soaring nearly 16% following strong third-quarter earnings and price target hikes. SanDisk Corp. (SNDK) and Qualcomm, Inc. (QCOM) also saw modest gains.
