The Nasdaq Composite extended its losing streak to four sessions on Thursday, falling even as Micron Technology delivered what analysts called a blowout earnings report. Apple's decline weighed heavily on the index, undercutting the positive sentiment generated by the chipmaker's strong performance.
The mixed session underscores a deepening divergence in the tech sector: investors are rewarding AI-driven growth stories like Micron while rotating out of megacap names that have powered the broader market rally. The Dow and S&P 500 posted gains, but the rotation out of high-flying tech stocks kept the Nasdaq in the red.
Micron reported record fiscal third-quarter results and a 346% year-over-year sales jump, according to CNN. The company's upbeat forecast helped ease fears about AI spending sustainability, triggering a surge in its own stock. However, Apple's slide limited the broader tech rally.
Traders are now recalibrating their positions ahead of the Personal Consumption Expenditures (PCE) price index data, which came in hotter than expected. Higher inflation readings could delay Federal Reserve rate cuts, adding further pressure to interest-rate-sensitive tech stocks.
Some analysts caution that even stellar earnings from a single company may not reverse the broader market's downward momentum. "Micron's results are impressive, but one strong quarter doesn't change the macro headwinds facing the sector," one strategist noted.