Extending industrial strength from the previous session, the Dow Jones Industrial Average (^DJI +0.14%) rose 0.14% to 51,920.62. The S&P 500 (^GSPC 0.01%) slipped 0.01% to 7,357.49, and the Nasdaq Composite (^IXIC 0.46%) fell 0.46% to 25,358.60 as fresh inflation data weighed on broader sentiment.
Gold prices rose 0.87% to $4,043.50 as of U.S. market close, and the 10-Year Treasury yield fell 0.01% to 4.39%. Industrials and healthcare led sectors, gaining 2.19% and 1.49% respectively, while communications slid 1.01%, and technology stocks fell 0.09%.
Today’s biggest moves
Micron Technology shares surged 16% today, and memory stocks gained, as artificial intelligence (AI) chip demand shows no sign of slowing. Caterpillar increased 6%, taking it to a record high of $1,047.33 following a landmark power deal this week. Conversely, Apple tumbled over 6% after hiking MacBook and iPad prices. Palantir Technologies fell more than 5% to a 52-week low as inflation data pressured growth-oriented software names.
What this means for investors
The Personal Consumption Expenditures (PCE) index hit a three-year high of 4.1% in May, up from 3.8% in April. Although it was in line with expectations, it reinforces the strong likelihood that the Federal Reserve will increase rates later this year. Falling oil prices will ease some of the price pressure, but underlying inflation is still a concern and weighed on markets today.
Today’s trading highlights the two sides of the AI coin: Memory chip demand meant leader Micron soared after blowout earnings and bullish guidance. The costs associated with that same demand caused Apple to raise its prices, sending its stock tumbling. All of the Magnificent Seven fell today.
Emma Newbery has positions in Apple. The Motley Fool has positions in and recommends Apple, Caterpillar, Micron Technology, and Palantir Technologies. The Motley Fool has a disclosure policy.
