Global stocks saw a mixed close on Thursday, with the S&P 500 remaining nearly unchanged (down less than 0.1%) and the Dow Jones Industrial Average adding 71 points (0.1%) to reach 51,960.62. The Nasdaq composite, however, fell 0.5% to 25,358.60. This volatility followed a surge in AI-related stocks, particularly Micron Technology, which jumped 15.7% after reporting better-than-expected profits and revenue, and providing a strong growth forecast. Qualcomm also contributed positively, rising 3.8% after announcing expectations of $15 billion annually in sales from its data center business by 2029.
Despite the positive performance from chipmakers, concerns about the valuation of AI-related companies continue to create jittery sentiment among investors. These worries have led to volatile trading sessions, as the rapid ascent of these stocks raises questions about whether their profits can sustain such rallies. Additionally, rising interest rates from the U.S. Federal Reserve and other central banks are also influencing market sentiment, particularly affecting long-duration assets like technology stocks.
Conversely, Apple’s stock slumped 6.1%, becoming the biggest drag on the S&P 500, after the company raised prices for many of its products, including a 15% to 20% increase for Mac computers. Other major technology stocks, including Microsoft, also saw declines. In the bond market, Treasury yields eased, with the 10-year U.S. note yield falling 0.59 basis points to 4.394%. This occurred after U.S. inflation data showed a monthly reading slightly below expectations, despite an annual rate breaking above 4% for the first time in three years.
Asian markets, however, saw significant gains driven by renewed AI confidence. Japan's Nikkei 225 climbed 4.6%, and South Korea's KOSPI index rose 5.5% (with SK Hynix Inc. rallying on plans for a Nasdaq listing). MSCI's broadest index of Asia-Pacific shares outside Japan was 1.6% higher. The dollar remained near a one-year high against major currencies, although it fell slightly against a basket of currencies by 0.15% to 101.45. Oil prices edged higher but remained near pre-war levels, influenced by expectations of increased supply from the Middle East outweighing demand concerns.
