Tech Stocks Tumble Amid Economic Data and Price Hikes

The Nasdaq and S&P ended lower due to Big Tech share losses, while the Dow rose amid new economic data. Concerns regarding AI spending and Federal Reserve policies affected markets. Apple's price hikes and Micron's strong earnings highlighted the sector dynamics. U.S. inflation is rising, impacting interest rate speculation.

The Nasdaq and S&P indices closed lower on Thursday, primarily due to declines in major tech stocks, while the Dow Jones registered a gain as investors processed new economic data.

Initially rising, technology shares later declined, dragging down the Nasdaq. Worries over AI investment spending and its implications outweighed positive demand signals from companies like Micron and Qualcomm. As a result, the Nasdaq is poised for its steepest monthly drop since March 2025.

Apple experienced a slump following the increase in prices for its iPads and MacBooks, aimed at coping with rising chipset costs. This impacted the shares of Nvidia, Microsoft, and Alphabet as well. Micron's stock surged due to impressive earnings and forecasts, though concerns over debt-funded hyperscaler spending and a possibly more aggressive Federal Reserve continued to weigh on the market.