[New York Stock Market] Dow Hits Record High... Nasdaq Falls on Apple Price Hikes

Concerns Over Declining Big Tech Margins Due to Rising Semiconductor Prices
PCE Falls Slightly Short of Expectations

On June 25 (local time), the three major U.S. stock indexes showed mixed movements. While the Dow Jones Index hit a new all-time high, the Nasdaq was declining due to weak advertising performance from Apple.

As of 9:15 a.m. at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average stood at 51,257.10, up 718.20 points (1.39%) from the previous trading day. The S&P 500 Index, which focuses on large-cap stocks, was up 19.48 points (0.28%) at 7,377.10, while the Nasdaq Index, which is centered on technology stocks, was down 134.25 points (0.58%) at 25,242.38.

Inside the New York Stock Exchange. New York, USA – Photo by Yoonju Hwang

On this day, the Nasdaq Index at one point plunged nearly 5% during the session after Apple announced price increases for MacBook and iPad models. Apple explained that the price hikes were due to a sharp rise in component costs, including semiconductors.

The stock prices of big tech companies that purchase semiconductors were also weak. Alphabet and Meta were down 1.78% and 1.08%, respectively. This is interpreted as reflecting concerns that rising semiconductor prices may reduce the margins of major big tech firms.

However, Micron helped limit the market's decline by reporting fiscal third-quarter results that exceeded expectations the previous day. Qualcomm was up 3.98% from the previous day after raising its non-handset revenue outlook for fiscal year 2029.

For the Dow Jones Index, healthcare, financial, and industrial stocks led the gains. Johnson & Johnson and JPMorgan Chase each rose more than 2%, while Caterpillar was up 5%.

The Personal Consumption Expenditures (PCE) Price Index for May rose 0.4% from the previous month. This was slightly below the 0.5% forecast by economists surveyed by Dow Jones. Year-on-year, it increased by 4.1%, matching expectations.

Excluding the volatile food and energy sectors, core PCE rose 0.3% from the previous month and 3.4% from a year earlier. Both figures were in line with forecasts. Although core PCE reached its highest level since October 2023, CNBC reported that investors were relieved that inflation did not rise further, despite the impact of higher energy prices caused by the Iran war.

Meanwhile, U.S. Treasury yields were slightly lower. The yield on the benchmark 10-year Treasury note fell more than 2 basis points (1bp = 0.01 percentage point) to 4.374%.

This content was produced with the assistance of AI translation services.