U.S. stocks traded mixed Thursday as investors balanced blockbuster earnings from Micron Technology against fresh inflation data that reinforced expectations for interest rates to remain elevated for longer. While semiconductor stocks surged on renewed confidence in AI spending, weakness in several Big Tech names weighed on the Nasdaq.
The Dow Jones Industrial Average rose nearly 0.9%, while the S&P 500 added around 0.4%. The Nasdaq Composite struggled to hold early gains and slipped into negative territory as investors rotated out of several mega-cap technology stocks despite strong earnings and upbeat forecasts from key AI hardware companies.
Market Movers:
- Micron Technology (MU) +20%: Shares soared after the memory chipmaker delivered quarterly results and forward guidance that easily topped Wall Street expectations. The company issued an exceptionally strong outlook for both revenue and earnings, reinforcing confidence that AI-driven demand for high-bandwidth memory and data center chips remains robust.
- Qualcomm (QCOM) +10%: Qualcomm rallied after unveiling ambitious long-term growth targets tied to its expanding data center business. Management forecasts more than $15 billion in annual data center revenue by fiscal 2029 as the company continues diversifying beyond smartphones into AI infrastructure.
- The Wendy's Company (WEN) +9%: Shares extended gains as retail traders continued piling into the stock following a surge in activity across social media investing communities. Analysts noted the stock displayed characteristics similar to previous retail-driven short-squeeze candidates, fueling elevated trading volumes.
- Corning (GLW) +8.5%: Shares climbed after the company maintained shareholder-friendly capital returns through its latest quarterly dividend announcement. The stock also benefited from renewed optimism across AI networking and optical connectivity suppliers following Micron's strong earnings report.
- ARS Pharmaceuticals (SPRY) -28.5%: Shares tumbled after the company reported no new commercial insurance coverage wins for its Neffy epinephrine nasal spray during the latest reimbursement cycle. While management lowered operating expense guidance and reiterated its path toward cash-flow breakeven, investors focused on the slower-than-expected commercialization progress.
- Taysha Gene Therapies (TSHA) -8.7%: The gene therapy developer fell after announcing a public stock offering expected to raise approximately $200 million. Investors reacted negatively to the capital raise, which will dilute existing shareholders despite strengthening the company's balance sheet.
- Hertz Global Holdings (HTZ) -7%: Shares extended sharp losses after pricing a large public stock offering following heavy retail investor activity earlier in the week. The equity raise reignited concerns about shareholder dilution after the stock experienced unusually volatile trading.
- Alibaba (BABA) -3.7%: U.S.-listed shares moved lower after reports that Anthropic accused the Chinese technology company of improperly attempting to access its AI models. The allegations added fresh uncertainty for Chinese AI companies already navigating heightened geopolitical and regulatory scrutiny.
Micron Results Reinforce AI Spending Narrative
Micron's earnings were one of the market's biggest catalysts on Thursday, easing investor concerns that demand for AI infrastructure was beginning to cool. The company's record guidance suggested hyperscale cloud providers and enterprise customers continue investing aggressively in next-generation memory and storage technologies.
The strong report also lifted sentiment across the semiconductor sector, with suppliers tied to memory, storage, semiconductor manufacturing equipment, and networking infrastructure posting broad gains. Investors viewed Micron's outlook as another indication that AI capital spending remains healthy despite recent volatility across technology stocks.
Inflation Keeps Fed Policy in Focus
Economic data also remained firmly on investors' radar after the latest Personal Consumption Expenditures (PCE) report showed inflation remained elevated during May. While the headline reading matched expectations, persistent price pressures continue supporting the Federal Reserve's cautious stance on interest rates. The report reinforced market expectations that policymakers are unlikely to ease monetary policy anytime soon. Instead, investors continue debating whether another rate increase could still occur later this year if inflation proves difficult to bring back toward the Fed's long-term target.
Oil Retreat Offers Some Relief
Energy markets provided one bright spot after crude oil prices continued easing as supplies through the Strait of Hormuz normalized following recent geopolitical tensions. Brent crude traded near $75 per barrel, while West Texas Intermediate hovered around $71. The decline in oil prices has helped reduce some inflation concerns that dominated markets earlier this month, although policymakers remain cautious about declaring victory over broader price pressures.
Looking Ahead
Investors will continue watching incoming inflation data alongside corporate earnings for further evidence that the AI investment cycle remains intact. Strong results from Micron and Qualcomm have helped restore confidence in semiconductor demand, but continued weakness among several mega-cap technology stocks suggests investors remain selective. Attention will also remain focused on the Federal Reserve's policy outlook, as persistent inflation and resilient economic data continue shaping expectations for interest rates through the remainder of 2026. For now, markets appear caught between optimism over AI-driven earnings growth and caution over a higher-for-longer rate environment.
