US markets experienced significant volatility on Thursday, with the Dow Jones ending just at the flat line after cooling off over 700 points from its intraday high of 52,655. According to reports from CNBC TV18, the S&P 500 and Nasdaq Composite also reversed gains to end below the flat line, with the Nasdaq Composite ending 0.5% lower. The latest data shows the Dow Jones added 71 points (0.1%) while the S&P 500 finished nearly unchanged with a dip of less than 0.1% after swinging between gains and losses throughout the day. The Nasdaq Composite fell 0.5% as reported by Business Standard, with the Nasdaq 100 managing to close 220 points higher but not before cooling off more than 400 points from its own day's high. US consumer spending accelerated in May even as Personal Consumption Expenditure (PCE) inflation rose at the fastest pace in more than three years, with US GDP for the first quarter growing at 2.1% in another revised estimate.
Apple shares led the losses in tech names on Thursday, declining 6.1% after announcing a price hike for various products. As reported by CNBC TV18, this marked the company's biggest single-day fall in 14 months and wiped out $265 billion in market capitalization. The fall overshadowed every other component of the Magnificent Seven, with Nvidia, Microsoft, Meta, and Amazon ending declining between 1.5% to 3.5%. According to Business Standard, Apple raised prices for many of its products, including increases of 15% to 20% for Mac computers, with the stock slumping to become the single heaviest weight on the S&P 500. Inflation in the United States rose above 4% for the first three years on Thursday, as energy prices were boosted by the Middle East conflict, though the monthly reading came in slightly below expectations and helped to lower yields.
Despite the tech selloff, Micron Technology helped lead the market after jumping 15.7% and Qualcomm rose 3.8% on strong AI optimism. According to Business Standard, Micron Technology reported much bigger profit and revenue for the latest quarter than analysts expected, and gave a stronger growth forecast for the current quarter than Wall Street expected. 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. Qualcomm said late Wednesday that the acceleration of the AI era is forcing it to upgrade forecasts for its own growth in upcoming years, with the company expecting its revenue outside of handsets, including data centers, to hit $40 billion in its fiscal year of 2029, roughly double its prior target. This strong performance from the chip manufacturer was overshadowed by the broader tech market decline, highlighting the market's focus on Apple's challenges over positive developments in the semiconductor sector.
US consumer spending accelerated in May even as Personal Consumption Expenditure (PCE) inflation rose to 4.1% last month from 3.8% in April, as reported by Business Standard. The hope is that inflation is set to ease because of a drop-off in oil prices, with Brent crude oil rising 2.2% to $75.50 but still well off its highs above $100 caused by the Middle East conflict. Futures this morning are presenting a mixed picture with Dow futures trading with gains of close to 100 points while Nasdaq futures are down 100 points. Treasury yields eased to lessen the pressure on stocks and other investment prices, with the yield on the 10-year Treasury slipping to 4.39% from 4.41% late Wednesday and from 4.56% earlier this month. The choppy Wall Street moves have also impacted Asian equities, with the Nikkei and KOSPI leading the losses and shares of SoftBank dropping as much as 11%.
