NEW YORK (AP) — The U.S. stock market drifted to a mixed close after several AI stocks veered back up the roller coaster, while Apple shares dropped after hiking prices on many of its products. The S&P 500 slipped less than 0.1% Thursday after swinging between gains and losses. The Dow Jones Industrial Average rose 0.1%, and the Nasdaq composite fell 0.5%. Micron Technology helped lead the market after the memory chip company reported much stronger profit and revenue for the latest quarter than analysts anticipated. Treasury yields eased in the bond market after a report said inflation is behaving pretty much as economists expected.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
NEW YORK (AP) — The U.S. stock market is drifting in mixed trading Thursday after several veered back up , while Apple dropped after hiking prices on many of its products.
The S&P 500 rose 0.3% after swinging between gains and losses in the morning. The Dow Jones Industrial Average was up 227 points, or 0.4%, as of 2:24 p.m. Eastern time, and the Nasdaq composite was 0.1% lower.
Micron Technology jumped 16.6%. The maker of computer memory reported much stronger profit and revenue for the latest quarter than analysts expected, and it gave a stronger growth forecast for the current quarter than Wall Street expected. That helped allay worries a bit that its stock had grown too expensive after coming into the day with a surge of 267% so far this year.
Micron and AI stocks broadly have been because of worries that their profits can’t possibly keep pace with the . But beyond Micron, Qualcomm said late Wednesday that the acceleration of the AI era is forcing it to upgrade forecasts for its own growth in upcoming years. They're the latest signals of the and other investments.
Qualcomm said it expects its revenue outside of handsets, including data centers, to hit $40 billion in its fiscal year of 2029, roughly double its prior target. Qualcomm’s stock rose 6.9%.
But all the strong demand for computer memory and storage that's driving producers higher likewise means higher prices for customers. Apple on Thursday raised prices for many of its products, including increases of 15% to 20% for Mac computers, according to analysts. Its stock slumped 4.5% and was the single heaviest weight on the S&P 500.
The broad U.S. stock market got a lift from easing Treasury yields in the bond market, which regressed after a report showed .
The report said that a measure of inflation hitting U.S. consumers accelerated to 4.1% last month from 3.8% in April, but the hope is that it is set to ease because of a drop-off in oil prices.
The price for a barrel of Brent crude oil, the international standard, rose 2% to $75.36 Thursday. But it's still well off its highs above $100 caused by the closure of the because of the war, which slowed the global flow of oil. Earlier Thursday, it dropped near its roughly $72 price from before the war.
That helped the yield on the 10-year Treasury slip to 4.39% from 4.41% late Wednesday and from 4.56% earlier this month.
“As long as gasoline prices trend lower, inflation expectations will likely follow suit,†according to Brian Jacobsen, chief economic strategist at Annex Wealth Management.
caused by worries about inflation are threatening to slow economies, and they have already sent rates higher for mortgages and other kinds of loans. High yields also hurt prices for investments, particularly those seen as the most expensive. That raises the pressure on AI winners.
In stock markets abroad, South Korea’s Kospi jumped 5.4% after its own AI winners shot higher, including a 13.1% surge for SK Hynix.
Other markets also rallied, including gains of 4.6% for Japan’s Nikkei 225 and 0.7% for the United Kingdom’s FTSE 100. A 1.4% drop for Hong Kong’s Hang Seng was an outlier.
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AP Business Writer Elaine Kurtenbach contributed to this report.
