S&P 500 Up 0.4% as Apple Sinks 5% and Dow Tops 1.1%
SPY•The S&P 500 rose 0.4% while the Nasdaq fell 0.4% as Apple plunged 5% after raising MacBook and iPad prices citing surging chip costs. Micron jumped 10% on fiscal Q3 beats and Qualcomm gained 3% after raising non-handset revenue guidance, helping offset losses and powering a 1.1% Dow advance.
1. Diverse Index Movements
The S&P 500 climbed 0.4% even as the Nasdaq Composite slipped 0.4%, reflecting a split market reaction to earnings and cost pressures. The Dow Jones Industrial Average surged 598 points, or 1.1%, driven by strength in healthcare, financials and industrials.
2. Apple Price Hikes Spur Sell-Off
Apple shares dropped nearly 5% after the company announced price increases for MacBook and iPad models, attributing the hikes to rising component costs, particularly semiconductors. Investors reacted to concerns that higher input costs could compress margins across its hardware lineup.
3. Semiconductor Stocks Rally
Micron Technology rallied 10% after reporting fiscal third-quarter results that exceeded analyst expectations, while Qualcomm climbed 3% on raised guidance for non-handset revenue in fiscal 2029. Other chipmakers, including Sandisk, Western Digital and Applied Materials, also posted gains in sympathy.
4. Inflation and Treasury Yields
May’s Personal Consumption Expenditures price index rose 0.4% month-over-month and 4.1% year-over-year, with core PCE up 0.3% monthly and 3.4% annually. The 10-year U.S. Treasury yield eased over 2 basis points to 4.374% as markets digest mixed inflation signals.
