Wall Street closed mixed on Thursday, June 25, 2026, as gains in semiconductor companies, fueled by strong AI chip demand, were countered by losses in megacap technology stocks. The Dow Jones Industrial Average saw a slight increase, while the Nasdaq Composite declined by 0.46% (118.03 points) to 25,358.60, and the S&P 500 remained nearly flat. This divergence highlights a shift in investor sentiment, moving from a broad acquisition of tech stocks to a more focused approach on companies with immediate and visible earnings growth tied to AI. theledger.asia
Micron Technology was a standout performer, surging 15.74% after delivering an optimistic outlook and revealing $22 billion in customer commitments for memory-chip supply. Other memory and semiconductor stocks like SanDisk Corp (up 22.0%) and Applied Materials Inc (up 13.4%) also saw significant gains, contributing to a 3.59% rise in the Philadelphia semiconductor index. This rally was driven by expectations of continued strong demand for memory products essential for data centers and advanced computing systems in the AI sector. Qualcomm also announced a target of $15 billion in sales from its data center business by 2029. ts2.tech, thestar.com.my, tradingkey.com
Conversely, major technology companies faced downward pressure. Apple Inc. lost 6.1% after announcing price hikes for Mac and iPad products, citing rising costs due to global memory chip shortages. This move raised concerns about consumer electronics demand and profit margins. Other tech giants like Nvidia, Microsoft (down 3.5%), and Alphabet also experienced declines, pulling down the broader Nasdaq. This dynamic indicates that while upstream chipmakers are benefiting from surging AI demand and increased pricing power, downstream consumer electronics manufacturers are experiencing squeezed margins. tradingkey.com, ts2.tech, wtvbam.com
Adding to market cautiousness, the U.S. Personal Consumption Expenditures (PCE) price index, the Federal Reserve's preferred inflation gauge, climbed to 4.1% in May from a year ago, marking its highest level in three years. Core PCE rose to 3.4%. While monthly data aligned with expectations, easing immediate rate-hike fears, the elevated inflation figures suggest that the Fed may not be able to quickly pivot towards monetary easing. Real GDP growth for Q1 was revised down to 2.1%. tradingkey.com, ts2.tech, wtvbam.com
