S&P 500, Dow Futures Climb As Markets Look Past Big Tech Declines, Hotter-Than-Expected Inflation: AAPL, MSFT, BABA, MSTR, SNDK, FIG In Focus

U.S. stock markets are mostly headed for a month in the red amid a downbeat streak for technology names.

• On Thursday, Apple plunged more than 6% after announcing price increases for iPads and MacBooks.
• Microsoft also declined by more than 3% after hiking prices on its Xbox gaming consoles. 
• Meanwhile, reports emerged on fresh tensions in the Strait of Hormuz after Iran reportedly attacked a cargo vessel near Oman on Thursday.

U.S. stock futures were mixed in the overnight session late Thursday, weighed by deepening declines in technology stocks and a Personal Consumption Expenditures (PCE) Index reading that hit a 31-month high.  

S&P 500 futures gained 0.03% and Dow futures were up 0.21%. Meanwhile, Nasdaq 100 futures declined 0.20% at 9:20 PM EDT.  

Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY) and the Invesco QQQ Trust (QQQ) edged lower at the time of writing, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) traded higher. The iShares 20+ Year Treasury Bond ETF (TLT) was trading down 0.07% amid ‘bullish’ sentiment.

How Did US Markets Fare On Thursday?

Stock markets were a mixed bag on Thursday amid a slump in big tech names. The Dow Jones Industrial Average index added more than 70 points to close up 0.14%, while the S&P 500 ended flat. Meanwhile, the Nasdaq Composite index shed 118 points, down 0.46%, amid broader tech weakness.

The Dow is now headed for three consecutive weeks in the green, bolstered by gains in sectors such as industrials, financials, and healthcare. Meanwhile, the Nasdaq is headed for a third week of declines amid sustained tech weakness. The S&P 500 is also poised to end the week lower. 

Index	Move	Close
Dow Jones Industrial Average	0.14%	51,920.62
S&P 500	-0.01%	7,357.49
Nasdaq Composite	-0.46%	25,358.60

US Market Drivers

U.S. stock markets are largely headed for a month in the red amid a downbeat streak for technology names.

On Thursday in particular, Apple Inc. (AAPL) shares extended four consecutive days of declines and plunged more than 6% after it announced an increase in iPad and MacBook prices, citing soaring memory and storage chip costs driven by the AI data center boom.

Microsoft Corp. (MSFT) also declined by more than 3% after hiking prices on its Xbox gaming consoles, citing surging component costs. Following the announcement, Stifel lowered its price target on Microsoft to $400 from $415, while maintaining a Hold rating on the stock.

Amazon.com (AMZN) fell more than 3%, Meta Platforms (META) fell by over 2%, and several other tech giants, including the remaining “Magnificent Seven” stocks, also ended Thursday’s session in the red.

“This is a market that we think is quite set up to test conviction. We have this flavor of market leadership in specifically semiconductors and memory chip leaders,” Julia Hermann, global market strategist New York Life Investment Management, said on CNBC’s ‘Closing Bell.’ “This is a structurally more volatile flavor of tech than we saw in the Magnificent Seven for the past several years.”

Meanwhile, chip stocks continued their hot streak on Thursday, with Micron Technology (MU) soaring nearly 16% following a series of price target hikes after a blowout third-quarter earnings. SanDisk Corp. (SNDK) and Qualcomm, Inc. (QCOM) also edged higher at close.

On the economic front, the Federal Reserve's preferred inflation gauge, the PCE index, advanced 4.1% in May on an annualized basis, which was the highest level since October 2023. Core PCE, which excludes food and energy, rose 3.4% on an annualized basis in April, up 0.3% on a monthly basis.

̌“Then you pair that with an astonishing repricing in Fed expectations — not just the what, but the why of why the Fed might be hiking next — and you have this environment, which is candidly a recipe for volatility,” Hermann added about the markets.

Meanwhile, reports emerged on fresh tensions in the Strait of Hormuz after Iran reportedly attacked a cargo vessel near Oman on Thursday, threatening the peace deal signed last week by Washington and Tehran to end the war in the Middle East.

Trending Stocks To Watch

Alibaba Group Holding Ltd. (BABA): Shares of the Chinese tech giant dipped more than 4% after Anthropic accused the company of “illicitly” accessing its Claude AI model.

Strategy (MSTR): Shares of the bitcoin development company extended a sharp decline on Thursday, falling more than 9% at close amid a decline in the price of the world’s largest cryptocurrency and liquidity woes.

Sandisk Corp. (SNDK): The memory chip company soared more than 21% at close, rising in sympathy with Micron’s strong earnings and a price target hike from Citigroup.

Figma Inc. (FIG): Shares of the cloud-based design software company tumbled more than 9% to a record low after RBC Capital lowered its price target to $22 from $28, citing uncertainty over the financial impact of the new tools unveiled at its annual event.

Global Market Trends

Crude oil prices continued to decline overnight on Thursday. At the time of writing, Brent crude futures expiring in August were trading 0.68% lower at around $74.75 per barrel. Meanwhile, WTI crude futures expiring in August fell 0.54% to $71.53 per barrel.

Yields on the 10-year Treasury were at 4.402% at the time of writing, while spot gold prices declined to around $4,021.77 an ounce.

Asian markets traded mixed at the open on Friday. South Korea's KOSPI and Japan’s Nikkei 225 declined at the time of writing, while China’s SSE Composite index edged higher. Australian stocks also climbed at the open on Friday.

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