The three major stock indexes on Wall Street ended mixed. Micron Technology, seen as the biggest beneficiary of growing artificial intelligence (AI) memory demand, surged, but shares of large tech companies fell on concerns about expense burdens from rising memory prices.
On the 25th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed up 0.14% from the previous day at 51,920.62. The Standard & Poor's (S&P) 500 closed down 0.01% from the prior session at 7,357.49, and the Nasdaq fell 0.46% to 25,358.60 at the close.
Early in the session, Wall Street rose on expectations of expanding demand for AI Semiconductor chips. However, as large tech stocks broadly weakened, it gave back most of its gains.
Market attention split between Micron and Apple. Micron jumped 16% after posting a quarterly result that topped expectations and offering an upbeat outlook. Expectations that demand for memory chips, including high-bandwidth memory (HBM), will continue to increase as AI data center investment expands lifted the share price.
Apple, by contrast, plunged 6.12% in the wake of its released price hikes for MacBooks and iPads, citing higher prices for key components such as memory. Microsoft (MS) also fell 3.46% as concerns mounted over product price increases and expense burdens from AI infrastructure investment. Alphabet and Meta also fell about 1% and 2%, respectively.
In the market, there was growing concern that while expanding AI investment is a boon for semiconductor corporations, it could translate into cost pressures for big tech companies that sell finished goods. Carol Schleif, chief investment officer (CIO) at BMO Family Office, said, "Explosive results at one company ultimately mean that somewhere in the supply chain another company is bearing the expense." Matt Maley, chief market strategist at Miller Tabak, noted, "We are seeing signs of cracks in tech," adding, "If the share prices of hyperscalers that operate AI data centers continue to show weakness, it will not be easy for the broader market to maintain upward momentum."
International oil prices rebounded on geopolitical tensions in the Middle East. After a vessel attack in the Strait of Hormuz, August Brent rose 2.06% to $75.26 a barrel, and August West Texas Intermediate (WTI) climbed 2.25% to $71.92 a barrel at the close of the transaction.