Wall Street experienced a mixed day on Thursday, June 25, 2026, as gains in semiconductor stocks were largely offset by declines in megacap technology companies. The Dow Jones Industrial Average closed slightly higher, while the Nasdaq Composite declined by $118.03$, or $0.46%$, to $25,358.60$, and the S&P 500 finished nearly flat, down $0.73$ points, or $0.01%$, at $7,357.49$. This divergence indicated investors were becoming more selective, favoring companies with clear AI-linked earnings visibility over those with potentially stretched valuations and higher input costs.
Driving the semiconductor rally was Micron Technology, which surged $15.7%$ following an upbeat outlook that reinforced confidence in demand for AI-related hardware. Its strong performance, along with other memory chipmakers like SanDisk ($22%$) and Western Digital, lifted the broader Philadelphia Semiconductor Index by $3.2%$. Qualcomm also contributed to the positive sentiment with ambitious growth targets for its data center business, aiming for $15$ billion in annual revenue by 2029 and $40$ billion in chip sales outside smartphones.
However, this chip sector strength was not enough to buoy the broader market. Apple shares fell sharply by $6.1%$ after increasing prices for selected MacBooks and iPads due to soaring memory and storage costs, raising concerns about consumer demand and profit margins in the consumer electronics market. Other major technology names like Nvidia, Microsoft, and Alphabet also saw declines, ranging from $0.5%$, to $3.5%$. These losses weighed heavily on the Nasdaq, which was on track for its biggest monthly decline since March 2025.
Adding to market cautiousness were new economic data. US inflation, as measured by PCE, rose to $4.1%$ in May, marking a three-year high and, along with higher energy prices, nudging the Federal Reserve closer to a potential interest rate hike. Despite strong first-quarter GDP growth revised down to $2.1%$ annually and a higher-than-expected fall in jobless claims, persistent inflation concerns and fears of a more hawkish Fed contributed to the mixed market sentiment, signaling a shift in the AI trade from broad tech investments to more targeted ones.
