Micron Technology Shares Fall 2.9% as Chip Profit-Taking Pressures Tech Stocks
MU•Profit-taking in chip stocks weighed on the Nasdaq and S&P 500, with Micron Technology shares sliding 2.9% as investors booked gains after a recent rally. Brent crude fell below $80, prompting rotation into industrials and financials ahead of the Federal Reserve’s first meeting under Chair Kevin Warsh.
1. Chip Profit-Taking Hits Micron
Micron Technology shares fell 2.89% as traders booked gains in semiconductors following recent outperformance by Nvidia, Advanced Micro Devices and Broadcom. The decline contributed to drops in the Nasdaq and S&P 500, where heavyweights in the chip sector carry significant index weights.
2. Oil Price Drop Fuels Sector Rotation
Brent crude slid below $80 a barrel for the first time since early March, reducing input costs for industrials and prompting investors to shift assets into industrial and financial stocks, which rose 2.9% and 1.4% respectively, lifting the Dow Jones Industrial Average to a fresh record.
3. Fed’s First Meeting Under Warsh Weighs on Tech
The Federal Reserve began its first policy meeting under Chair Kevin Warsh with no expected rate changes, but market participants remained cautious about future guidance. Rate-sensitive growth and small-cap stocks saw muted demand amid uncertainty over the Fed’s outlook.
