Nasdaq falls 0.5% as tech sell‑off offsets Micron rally

The Nasdaq Composite slipped 0.5% on Wednesday, marking a fourth straight day of losses, while the S&P 500 closed flat and the Dow Jones eked out a modest 0.1% gain [1].

Tech sell‑off outweighs memory‑chip rally

Mega‑cap tech stocks led the decline, with Apple down 6% after announcing price hikes on Macs and iPads, and Nvidia shedding 2% from earlier gains [1]. Broadcom also slipped 1%, and SpaceX fell another 1% to a new low. The weakness in these high‑growth names offset a sharp rally in memory‑chip makers: Micron’s earnings beat drove its share price up 15%, while SanDisk and Western Digital rose 22% and 5% respectively [1]. Analysts point to a severe memory shortage that lifted Micron’s profit margin to nearly 85%, up from under 40% a year earlier [1].

Inflation data and oil price backdrop

The market’s focus on inflation remained high after the personal consumption expenditures (PCE) index showed a 0.4% rise in May, pushing the annual rate to 4.1%—well above the Fed’s 2% target [1]. The 10‑year Treasury yield slipped to 4.40% from 4.42% earlier in the day, reflecting modest relief after the data release [1]. Meanwhile, geopolitical tension in the Strait of Hormuz lifted West Texas Intermediate crude by more than 2% to $72 a barrel, with Brent trading around $75.50 [1].

What to watch

• May PCE report (released Thursday) – will confirm whether inflation is cooling or staying elevated.
• Federal Reserve policy – the Fed signaled a willingness to raise rates later this year; any shift in tone could move yields sharply.
• Apple earnings – next week’s results will test whether price hikes are eroding demand.

The divergence between a tech sell‑off and a memory‑chip rally highlights sector‑specific catalysts driving today’s market, while lingering inflation concerns keep bond yields and the dollar in focus. The next data points on inflation and Fed commentary will likely set the tone for equity and fixed‑income markets in the coming days.