Wall Street Mixed as AI Stocks Rally While Apple Drops After Price Hikes/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks traded mixed Thursday as Micron and Qualcomm rallied on strong artificial intelligence demand while Apple fell after raising product prices. Easing Treasury yields and hopes for lower gasoline prices offered support to the broader market despite persistent inflation concerns. Investors continued weighing AI-driven growth against higher valuations and inflation risks.

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Wall Street Quick Looks

• S&P 500 slipped 0.1% in midday trading.
• Dow Jones Industrial Average gained 221 points.
• Nasdaq Composite fell 0.6%.
• Micron Technology surged 14.2% after strong earnings.
• Qualcomm rose 7.4% after raising long-term AI revenue forecasts.
• Apple dropped 6.3% after announcing product price increases.
• Treasury yields eased as inflation data met expectations.
• Global markets posted broad gains led by Japan and South Korea.

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Deep Look

Wall Street Mixed as AI Winners Rebound and Apple Falls

U.S. stocks traded mixed Thursday as investors balanced renewed optimism around artificial intelligence with concerns over higher consumer prices and expensive technology valuations.

The S&P 500 slipped 0.1% in afternoon trading after moving between gains and losses throughout the morning.

The Dow Jones Industrial Average climbed 221 points, or 0.4%, while the Nasdaq Composite fell 0.6% as weakness in Apple offset gains across several semiconductor companies.

Markets continued to digest the latest inflation report while focusing on earnings and forecasts from companies benefiting from the ongoing AI investment boom.

Micron Delivers Strong Earnings Surprise

Micron Technology led market gains after reporting quarterly earnings and revenue that significantly exceeded Wall Street expectations.

The memory chip maker also issued stronger-than-expected guidance for the current quarter, helping reassure investors after concerns that its stock price had climbed too rapidly.

Shares jumped 14.2% following the report.

Micron entered Thursday having already gained roughly 267% this year, making it one of the biggest beneficiaries of expanding investment in artificial intelligence infrastructure.

Qualcomm Raises AI Growth Forecast

Qualcomm also boosted investor confidence in the AI sector.

The company raised its long-term revenue outlook, forecasting that business outside its traditional smartphone operations—including data centers and AI applications—will generate $40 billion in annual revenue by fiscal 2029.

That projection roughly doubles Qualcomm’s previous target.

Shares climbed 7.4% as investors welcomed another sign that companies continue investing aggressively in AI-related technologies.

The latest forecasts reinforce expectations that spending on data centers, advanced processors and networking equipment remains strong despite concerns about lofty stock valuations.

Apple Drops After Raising Product Prices

Apple weighed heavily on the broader market after announcing price increases across many of its products.

Analysts said prices for Mac computers are increasing by between 15% and 20%, reflecting higher costs for semiconductors and other computer components fueled by surging AI demand.

Apple shares fell 6.3%, making the company the largest drag on the S&P 500 during Thursday’s session.

The price increases also highlight how growing investment in artificial intelligence is contributing to higher costs throughout the technology supply chain.

Bond Market Offers Some Relief

Stocks found support from lower Treasury yields after the latest inflation report came in largely as economists expected.

The Commerce Department reported that consumer inflation accelerated to 4.1% in May, but investors remain hopeful that easing gasoline prices will help reduce inflation pressures in the coming months.

The yield on the benchmark 10-year Treasury note declined to 4.38%, down from 4.41% Wednesday and below recent highs of 4.56% earlier this month.

Lower bond yields generally support stock valuations by reducing borrowing costs and improving the appeal of equities.

“As long as gasoline prices trend lower, inflation expectations will likely follow suit,” according to Brian Jacobsen, chief economic strategist at Annex Wealth Management.

Oil Prices Stabilize

Oil markets remained relatively stable following sharp swings tied to the conflict involving Iran.

Brent crude rose 1.4% Thursday to $74.89 per barrel but remained well below the highs above $100 reached after the closure of the Strait of Hormuz disrupted global energy markets.

Earlier in the day, Brent briefly traded near the approximately $72 level seen before the conflict began.

Investors continue watching energy prices closely because sustained declines could ease inflation and improve consumer purchasing power.

Overseas Markets Rally

International stock markets generally posted stronger gains.

South Korea’s Kospi surged 5.4% as semiconductor companies rallied, including a 13.1% jump for SK Hynix.

Japan’s Nikkei 225 advanced 4.6%, while Britain’s FTSE 100 gained 0.7%.

Hong Kong’s Hang Seng Index was a notable exception, falling 1.4%.

Global investors remain focused on the balance between persistent inflation pressures and the strong earnings growth being generated by companies supplying the artificial intelligence industry.

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