TLDR
- The Dow jumped over 700 points while the Nasdaq fell, as investors rotated out of Big Tech
- Micron shares surged more than 10% after a record earnings beat and strong outlook
- Qualcomm announced a push into data centers, targeting $15 billion in new AI-related revenue
- The PCE inflation index rose 4.1% in May, keeping interest rate hike talks alive
- Oil prices fell to post-Iran-war lows, with Brent crude around $74 a barrel
Markets split sharply on Thursday, June 25, with the Dow Jones Industrial Average climbing 733 points, or 1.4%, while the Nasdaq Composite slipped around 0.6% by mid-session. The S&P 500 managed a modest 0.5% gain.
The divide came down to one thing: investors moving money out of Big Tech and into other sectors.
More than four in five S&P 500 stocks were on track to close higher. But the Roundhill Magnificent Seven ETF dropped 2%, dragging on the Nasdaq.
Big losers included Dell Technologies, Albemarle, Apple, EchoStar, and Palantir Technologies.
Micron Leads the Charge
Micron Technology was the standout of the day. The memory chip maker reported record quarterly results that beat Wall Street expectations and issued a stronger-than-expected outlook.
Its shares jumped more than 10% on the news. The results pointed to healthy demand for memory chips tied to artificial intelligence infrastructure.
The earnings beat briefly lifted broader market sentiment, though that optimism did not hold across the full tech sector.
Qualcomm also made headlines Thursday. The chipmaker said it plans to move beyond smartphones into data center products, including chips and servers aimed at AI workloads.
Qualcomm set a target of $15 billion in new revenue from these efforts. Its stock rose about 5% on the announcement.
Inflation Data Keeps Rate Hike Debate Open
The Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures index, showed prices rose 4.1% in May, in line with expectations. Month over month, prices were up 0.4%, slightly below forecasts.
The data kept the question of a possible interest rate hike firmly on the table. Higher rates tend to weigh on growth stocks, which makes up a large part of the Nasdaq.
Meanwhile, investors rotated into sectors seen as more stable under higher rate conditions. Industrials, health care, materials, financials, utilities, and energy all saw buying.
Oil prices fell to their lowest levels since the Iran war, with Brent crude rising slightly to around $74 a barrel and West Texas Intermediate near $70.
The two-year Treasury yield, which investors watch closely as a signal of Fed policy direction, has been pointing to possible rate action ahead.
Treasury yields moved lower after the PCE data landed, while the dollar also dipped.
Markets remain sensitive to any signals from the Fed as the debate between a rate hold and a rate hike continues into the second half of 2026.
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