Key facts
- Micron's stock surged nearly 20% following a strong earnings report.
- Apple announced price increases for its Mac and iPad products.
- Apple's stock declined, contributing to a reversal in the broader tech rally.
- The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite closed mixed on Thursday.
- Analysts cited overcrowded tech positioning and consumer price pass-through as factors in market volatility.
The U.S. stock market closed mixed on Thursday, with several AI stocks experiencing volatility and Apple shares dropping after price hikes on its products. The S&P 500 slipped less than 0.1%, the Dow Jones Industrial Average rose 0.1%, and the Nasdaq composite fell 0.5%.
Micron Technology initially led the market higher after reporting profit and revenue significantly exceeding analyst expectations, causing its stock to jump nearly 20%. This surge had initially boosted the Nasdaq 100 by 2% at the open.
However, the rally reversed as Apple announced price increases for its Macs and iPads, a move attributed to rising memory chip costs. Apple's stock subsequently fell, causing the Nasdaq 100 to pare its gains. Analysts noted that while Micron's results validated the AI trade, the passing of memory chip costs to consumers contributed to market volatility.
Futurum CEO Daniel Newman stated that Apple's price increases "spooked the market," while Baird investment strategist Ross Mayfield suggested that Micron's strong results could not overcome a challenging technical setup and overcrowded tech positioning.