Updated
Updated · CNBC · Jun 24
Nasdaq Drops 0.5% as Apple, Microsoft Price Hikes Lift Dow to Record
Updated
Updated · CNBC · Jun 24

Nasdaq Drops 0.5% as Apple, Microsoft Price Hikes Lift Dow to Record

3 articles · Updated · CNBC · Jun 24

Summary

  • Apple sank 5% and Microsoft nearly 4%, pulling the Nasdaq Composite down 0.5% even as the Dow added 161 points, or 0.3%, to a fresh intraday record.
  • Price increases on MacBooks, iPads and Xbox consoles sharpened worries that rising chip and component costs will squeeze big tech margins and spread inflation through electronics, cars and other goods.
  • Micron jumped 14% after topping quarterly estimates, while Qualcomm rose 6% on stronger long-term non-handset guidance, helping limit the broader tech selloff as other chip stocks advanced.
  • May PCE inflation rose 0.4% from April and 4.1% year over year, matching expectations closely enough to ease fears of a hotter print; the 10-year Treasury yield slipped to 4.384%.
  • Healthcare, financial and industrial shares including Johnson & Johnson, JPMorgan and Caterpillar drove the Dow higher, underscoring a rotation away from AI-linked megacaps into non-tech sectors.

Insights

As AI shifts value to hardware, are software giants like Apple and Meta facing a permanent power shift?
With AI driving a new kind of inflation, can the Fed tame prices without triggering a broader recession?
Is the AI investment boom a true economic revolution or the next dot-com bubble waiting to burst?