Stocks Waver Amid Economic Data, Micron’s Slide

Last updated: June 27, 2024

ny_stock_exchange_app_on_the_phoneUS stocks barely budged Thursday as Micron’s (MU) outlook cast a shadow over the tech rally, prompting investors to scrutinize fresh economic data ahead of a critical inflation reading that will guide Federal Reserve policy.

The S&P 500 (^GSPC) flirted with the flatline, maintaining gains from Wednesday’s close, inching close to an all-time high.

Meanwhile, the Dow Jones Industrial Average (^DJI) edged up 0.2%, and the tech-centric Nasdaq Composite (^IXIC) oscillated between business gains and losses.

The market’s hesitation followed Micron’s sales forecast for the current quarter, which, although in line with expectations, fell short of the stellar performance anticipated by investors betting on AI-linked companies.

AI enthusiasm has buoyed the S&P 500 to a 15% rise this year. However, fears are mounting that the rally’s legs might falter if leading tech firms fail to surpass sky-high expectations.

Micron’s shares plummeted over 6% in early trading, while Nvidia (NVDA) dropped more than 2%, stoking fears of a renewed sell-off reminiscent of last week’s market shake-up.

Investors were also digesting a fresh batch of economic data ahead of the PCE inflation report on Friday, which is set to influence the Fed’s decision on interest rate cuts.

Initial weekly jobless claims fell to 233,000, down by 6,000 from the previous week, as reported by the Department of Labor. This figure came in below the consensus estimate of 235,000.

However, continuing jobless claims rose to their highest level since late 2021, hinting at a prolonged job search for the unemployed.

Real gross domestic product (GDP) grew at an annual rate of 1.4% in Q1 2024, according to the Bureau of Economic Development’s third estimate, slightly up from the previous 1.3% estimate.

Inflation is set to be a hot topic in the first debate between President Joe Biden and former President Donald Trump on Thursday night.

On the corporate front, Levi Strauss (LEVI) shares tumbled over 15% following a second-quarter revenue miss. Investors are now eyeing Nike’s (NKE) quarterly results, due after the bell, for further insights into consumer resilience.

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About The Author

Co-Founder & Chief Editor
Jon Morgan, MBA, LLM, has over ten years of experience growing startups and currently serves as CEO and Editor-in-Chief of Venture Smarter. Educated at UC Davis and Harvard, he offers deeply informed guidance. Beyond work, he enjoys spending time with family, his poodle Sophie, and learning Spanish.
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LJ Viveros has 40 years of experience in founding and scaling businesses, including a significant sale to Logitech. He has led Market Solutions LLC since 1999, focusing on strategic transitions for global brands. A graduate of Saint Mary’s College in Communications, LJ is also a distinguished Matsushita Executive alumnus.
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