Market snapshot
U.S. stock futures were steady on Thursday night, with indexes positioned to close the week lower after technology stocks slipped over the past several sessions. By 20:08 ET (00:08 GMT), S&P 500 Futures had ticked up 0.1% to 29,755.50 points, Nasdaq 100 Futures rose 0.1% to 29,742.75 points, and Dow Jones Futures climbed 0.17% to 52,423.0 points.
Trading earlier in the session was mixed, as declines among top technology companies largely offset a rally across semiconductor names prompted by stronger-than-expected results from Micron.
Index performance and sector rotation
The NASDAQ Composite and the S&P 500 were on track to finish the week down 4.4% and 1.9%, respectively, following sharp tech-sector losses tied to questions about future artificial intelligence spending and the impact of higher interest rates. The Dow Jones Industrial Average, conversely, was trading up 0.7% for the week as investors shifted into more defensive corners of the market, notably healthcare and utilities, amid elevated volatility in technology.
Chipmakers saw notable strength Thursday, with Micron Technology Inc (NASDAQ:MU) jumping nearly 16% and helping to drive a 3.6% advance in the Philadelphia Semiconductor Index. That rally, however, failed to fully offset broad weakness in larger technology names, which remained under pressure.
Apple Inc (NASDAQ:AAPL) was a prominent laggard, sliding 6.1% after the company increased prices on iPads and MacBooks, a move the article links to rising memory chip costs tied to demand from the AI industry. The juxtaposition of Micron's sharp gain and Apple’s drop underscores a developing pattern in which semiconductor companies are emerging as clear beneficiaries of AI-driven demand while consumer electronics and software firms face margin pressure.
Geopolitics and commodity moves
Reports of a fresh attack on a cargo vessel in the Strait of Hormuz raised concerns about the durability of a tenuous U.S.-Iran peace arrangement. Oil prices recorded modest gains on Thursday but remained at levels described as pre-war.
Inflation, Fed expectations and economic data
On the macro front, the personal consumption expenditures (PCE) price index rose in May roughly as expected, including the core measure. Although the readings matched forecasts, core PCE remained well above the Federal Reserve’s 2% annual objective, indicating persistent inflationary pressure.
Market pricing, as measured by CME FedWatch, continued to reflect expectations that the Federal Reserve could raise interest rates at least once by the end of 2026, a view reinforced by the central bank’s comparatively hawkish tone in last week’s meeting. Additional data showed U.S. first-quarter gross domestic product was revised slightly higher, a sign of ongoing resilience in the economy that could give the Fed more latitude to tighten policy if it chooses.
AI-related uncertainty
Investor uncertainty around AI demand was further highlighted by a report that OpenAI might delay its planned initial public offering until 2027. That development, along with questions about how AI spending will be allocated across hardware and software vendors, contributed to the uneven performance within the tech complex.
Promotional note appearing in the original coverage
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Conclusion
Overall, futures were steady late Thursday as markets weighed sector-specific strength in semiconductors against broader technology weakness, persistent core inflation readings, and geopolitical tensions in the Middle East. These cross-currents have left major U.S. indexes on course for weekly losses, with investors seeking shelter in defensive sectors while assessing the implications for interest rates and corporate margins.