Nasdaq Index: Apple Weighs, Micron Shines as PCE Supports Stock Market

• Micron crushed earnings estimates and secured $22 billion in customer commitments, driven by AI-related memory chip demand, pushing its market cap briefly above $1.4 trillion
• Apple's price increases on MacBooks and iPads due to rising semiconductor costs pressured margins across major tech companies, with Alphabet, Meta, Nvidia, Amazon and Microsoft all declining 1-2%
• Core PCE inflation rose 3.4% year-over-year (matching forecasts), the highest since October 2023, but in-line results kept the Fed's hawkish rate outlook from escalating further

Market Summary: Sector Rotation Drives Mixed Performance

Key Market Movements (June 25, 2026)

U.S. markets displayed sharp sector divergence with the Dow Jones Industrial Average surging 768 points (+1.48%) to a new record high, while the S&P 500 gained 0.48% and the Nasdaq Composite declined 0.18%. This split performance signals clear rotation from technology into traditional sectors including healthcare, financials, and industrials.

Company Highlights

Micron Technology (MU) soared 15% after crushing earnings expectations with adjusted EPS of $25.11 per share. The company secured $22 billion in customer commitments and highlighted persistent supply shortages for memory chips driven by AI demand, briefly pushing its market cap above $1.4 trillion.

Apple (AAPL) dropped nearly 5% after announcing price increases on MacBook laptops and iPads due to rising chip costs. As the world's largest semiconductor buyer, this margin pressure rippled across major tech stocks: Alphabet (-1%), Meta (-1%), Nvidia (-2%), Amazon (-2%), and Microsoft all declined.

Dow leaders included Johnson & Johnson, JPMorgan Chase, and Caterpillar. Qualcomm gained 3% on improved non-smartphone revenue forecasts, while chip equipment makers Western Digital, KLA, and Applied Materials rallied on Micron's momentum.

Economic Data

May PCE inflation met expectations: headline rose 0.4% monthly (4.1% annually) versus 0.5% forecast; core PCE increased 0.3% monthly and 3.4% annually. The 3.4% core reading marks the highest since October 2023 but calmed Fed rate hike concerns. The 10-year Treasury yield fell 2 basis points to 4.374%.

Market Implications

The divergent performance reflects selective capital allocation rather than broad market weakness. The S&P 500's 50-day moving average at 7,357.33 remains critical support. The Nasdaq faces resistance at its 50-day MA of 25,754.29, requiring a breakout to