S&P 500 Ends Flat As Apple Weakness Offsets Micron Gains, Nasdaq 100 And Dow Post Modest Gains — MSFT, QCOM, SPCX, BMBL, SONO In Focus
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The S&P 500 ended flat and the Nasdaq 100 rose 0.8%, while the Dow Jones added 0.1%.
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Qualcomm stock jumped on forecast of annual sales of more than $15 billion from artificial intelligence components by FY29.
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Microsoft announced it’s raising prices on Xbox consoles.
The S&P 500 ended flat on Thursday as weakness in Apple stock offset optimism from Micron’s strong quarterly results, which put to rest worries that the AI boom might have gone ahead of itself.
The S&P 500 was flat, the Nasdaq 100 gained 0.8% and the Dow Jones rose 0.1%. The Russell 2000, which tracks stocks with small market capitalizations, added 0.1%.
Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY) fell 0.1% and Invesco QQQ Trust (QQQ) ended Thursday around 0.4% lower, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) ended 0.1% higher.
Meanwhile, the VanEck Semiconductor ETF (SMH) jumped 2.8%.
Retail sentiment on Stocktwits for SPY and DIA was ‘bearish,’ while sentiment for QQQ was ‘bullish,’ with ‘normal’ to ‘high’ message volumes.
US Market Drivers
|
Index |
Move |
Close |
|
Dow Jones Industrial Average |
0.1% |
51,920.62 |
|
S&P 500 |
-0.01% |
7,357.49 |
|
Nasdaq 100 |
0.8% |
29,440.32 |
Micron Technologies (MU) share price soared 16% on Thursday after the company beat Q3 earnings and revenue estimates by a wide margin and provided a strong outlook for the upcoming quarter, driven by surging demand for memory chips amid AI-fueled shortages. The chipmaker reported its earnings after-hours on Wednesday.
But both Apple and Microsoft saw their share prices retreat following news of product price hikes. Apple stock dropped around 6% after announcing hikes for the MacBook and iPad, a move the tech giant attributed to rising component and chip expenses.
Similarly, Microsoft shares slipped 3.5% after the company confirmed it would increase the retail price of its Xbox consoles.
“I think there are pretty big spillover effects from just really big inflation and technology supply chains,” Jed Ellerbroek of Argent Capital Management told CNBC. Right now, however, the consumer is “strong enough to absorb these price increases,” he added.
A slew of positive economic data seemed to have supported benchmark indices. Data showed U.S. consumer spending improved in May, even as prices rose at the fastest pace in more than three years, and a separate report showed the economy grew at an annualized 2.1% in the first quarter.
Trending Stocks To Watch
Microsoft (MSFT): The company announced a third substantial price increase for its current-generation Xbox video-game consoles.
Qualcomm (QCOM): The chipmaker forecast annual revenue of more than $15 billion from artificial intelligence components in data centers by FY29.
SpaceX (SPCX): Wall Street speculation is mounting that Elon Musk’s SpaceX (SPCX) could pursue an acquisition of a major U.S. wireless carrier, such as T-Mobile (TMUS).
Bumble (BMBL): A report said the company is considering a sale amid a broader slowdown in the online dating market.
Sonos (SONO): The company is trimming its workforce by 3%, which will affect its user experience, product, and design teams as it moves to operate with a leaner structure and reduce costs.
Read More: Alphabet’s Waymo Targets Germany In Next Phase of Robotaxi Rollout
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Shashank Nayar has no position in any of the stocks mentioned in this article. StockTwits’ news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits.
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