NEW YORK (AP) — The U.S. stock market is drifting in mixed trading Thursday after several artificial-intelligence stocks veered back up the roller coaster, while Apple dropped after hiking prices on many of its products.
The S&P 500 slipped 0.3% after erasing an early gain of 0.8%. The Dow Jones Industrial Average was up 228 points, or 0.4%, as of 10 a.m. Eastern time, and the Nasdaq composite was 1.2% lower.
Micron Technology helped lead the market after jumping 9.7%. The maker of memory chips for computers 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 under pressure recently because of worries that their profits can’t possibly keep pace with the tremendous rallies for their stock prices. But beyond Micron, Qualcomm said late Thursday that the acceleration of the AI era is forcing it to upgrade forecasts for its own growth in upcoming years.
The chip company 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 3.1%.
But all the strong demand for computer memory and storage that's driving producers higher also 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 fell 4.8%.
The broad U.S. stock market also got a lift from easing Treasury yields in the bond market. They regressed after a report showed inflation is behaving pretty much as economists expected.
The price for a barrel of Brent crude oil, the international standard, slipped 0.1% to $73.81 and is near its roughly $72 price from just before the war with Iran. It’s come well off its highs above $100 caused by the closure of the Strait of Hormuz because of the war, which slowed the global flow of oil.
That jump in oil prices earlier this year sent inflation sharply higher, and a report showed that a measure of inflation hitting U.S. consumers accelerated to 4.1% last month from 3.8% in April. But that wasn’t any worse than economists expected, and the hope is that inflation may ease because of the drop-off in oil prices.
That helped the yield on the 10-year Treasury slip to 4.36% from 4.41% late Wednesday and from 4.56% earlier this month.
High yields in bond markets worldwide 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 0.6% 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.
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