Micron Technology (NASDAQ: MU) shares surged 16% following blowout earnings and bullish guidance, as artificial intelligence chip demand continues to show no sign of slowing.
Memory stocks broadly gained alongside Micron, reflecting sustained investor confidence in the AI-driven hardware cycle that has defined much of the market’s recent momentum.
Caterpillar climbed 6% to reach a record high of $1,047.33, a milestone driven by a landmark power deal announced earlier in the week.
Apple fell more than 6% after the company raised prices on its MacBook and iPad product lines, a move that rattled investor sentiment around consumer electronics demand.
Palantir Technologies dropped more than 5% to a 52-week low, as rising inflation data weighed heavily on growth-oriented software names across the board.
The Personal Consumption Expenditures index reached a three-year high of 4.1% in May, climbing from 3.8% in April and reinforcing concerns about persistent price pressures in the economy.
Although the PCE reading came in line with analyst expectations, it significantly raises the likelihood that the Federal Reserve will move to increase interest rates later this year.
Falling oil prices are expected to ease some headline inflation pressure, but underlying core inflation remains a concern and contributed to the day’s broad market weakness.
Today’s session illustrated the sharply divided landscape within the AI trade, with hardware and memory benefiting while software and consumer tech faced meaningful selling pressure.
Micron’s surge underscores how AI infrastructure spending is still accelerating, rewarding chipmakers with direct exposure to data center memory demand and enterprise AI buildouts.
The contrast between Micron’s rally and Palantir’s decline reflects a broader market rotation, with investors favoring capital-intensive hardware plays over high-multiple software names in a rising rate environment.
Markets remain sensitive to any data that shifts expectations around Federal Reserve policy, and today’s PCE print served as a reminder that the rate path remains uncertain heading into the second half of the year.
