US Stock Market Today: Key Highlights
- U.S. stocks traded mostly higher on Thursday as investors returned to artificial intelligence and semiconductor shares following strong earnings from Micron Technology.
- Micron's better-than-expected quarterly results lifted confidence in AI infrastructure spending and boosted semiconductor stocks including Qualcomm, SanDisk, and Western Digital.
- The latest May Personal Consumption Expenditures (PCE) Price Index matched market expectations, easing concerns about an unexpected rise in inflation.
- Lower crude oil prices supported airline and travel stocks as easing Middle East tensions improved investor sentiment.
- Wednesday's session ended mixed, with gains in the Dow Jones Industrial Average while the S&P 500 and Nasdaq Composite finished lower.
- Investors continue monitoring inflation, Federal Reserve policy, corporate earnings, and geopolitical developments for further market direction.
The U.S. stock market traded mostly higher on Thursday, June 25, as investors returned to artificial intelligence and semiconductor stocks after stronger-than-expected results from memory chipmaker Micron Technology. The rally followed a mixed session on Wednesday, when investors shifted away from large technology companies even as the Dow Jones Industrial Average posted gains.
Trading remained uneven through the day, however. While semiconductor companies advanced sharply, weakness in some of the market's largest technology stocks, including Apple, limited gains in the broader Nasdaq Composite, reflecting continued investor caution about elevated valuations in parts of the AI sector.
Micron earnings revive confidence in AI trade
Investor sentiment improved after Micron Technology reported quarterly earnings and guidance that exceeded Wall Street expectations. According to the company, demand for high-bandwidth memory chips used in artificial intelligence servers remained strong, while customers committed billions of dollars in future supply agreements.
The results reassured investors that spending on AI infrastructure remains robust despite recent concerns that valuations across the semiconductor industry had become stretched.
Micron shares surged in Thursday trading, while other companies tied to AI hardware also moved higher. Qualcomm gained after reaffirming ambitious long-term data center revenue targets, and memory storage companies including SanDisk and Western Digital also advanced as investors broadened their exposure to semiconductor stocks.
The renewed buying came after several sessions in which investors questioned whether AI-related companies had risen too quickly following months of strong gains.
Technology leadership remains uneven
Although semiconductor shares rallied, the broader technology sector remained mixed.
Apple shares declined sharply after announcing price increases on several Mac and iPad models, which the company linked to higher component costs, including memory chips. The decline in Apple's stock weighed on both the Nasdaq Composite and the S&P 500 because of the company's large market value.
As a result, gains in chipmakers were partially offset by losses in several mega-cap technology companies. Market performance therefore differed significantly across sectors despite the strength in AI-related businesses.
The mixed trading reflected a broader shift in investor behavior, with buyers becoming more selective instead of lifting the entire technology sector.
Inflation data matches expectations
Markets also reacted to the latest Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve's preferred measure of inflation.
The Commerce Department reported that the headline PCE price index increased 0.4% in May from the previous month and rose 4.1% from a year earlier, matching economists' expectations. Consumer spending also remained solid during the month.
Although the annual inflation rate remained above the Federal Reserve's long-term 2% target, the absence of an upside surprise reduced fears that inflation was accelerating even faster than expected.
Investors viewed the report as largely consistent with current market expectations, helping stabilize Treasury yields after recent volatility.
Economists noted that higher energy prices linked to earlier Middle East tensions contributed significantly to May's inflation reading, while easing oil prices could moderate future inflation if the trend continues.
Oil prices retreat as geopolitical tensions ease
Another positive factor for equities came from the energy market.
Crude oil prices remained close to levels seen before the recent Middle East conflict after shipping activity through the Strait of Hormuz improved following diplomatic developments between the United States and Iran.
Lower oil prices generally reduce fuel costs for businesses and consumers while easing inflation pressures over time.
Airline and travel-related stocks benefited from the decline because fuel represents one of their largest operating expenses. Investors also viewed cheaper energy as supportive for consumer spending if gasoline prices continue to fall in coming weeks.
Wednesday's session ended mixed
Thursday's trading followed a divided performance on Wednesday, when investors rotated away from some of the largest technology stocks.
| Index | Closing Value | Daily Change |
|---|---|---|
| Dow Jones Industrial Average | 51,848.90 | +182.06 (+0.35%) |
| S&P 500 | 7,358.22 | -7.24 (-0.10%) |
| Nasdaq Composite | 25,476.64 | -110.40 (-0.43%) |
The Dow outperformed because investors shifted toward industrial and economically sensitive companies, while weakness among technology stocks pushed the Nasdaq lower. Thursday's rebound in semiconductor shares represented a partial reversal of that trend, although broader technology performance remained uneven during the session.
Investors continue watching Federal Reserve outlook
Despite Thursday's improvement in market sentiment, investors remain focused on the Federal Reserve's next policy decisions.
Inflation remains above the central bank's target, and several economists believe policymakers could keep interest rates elevated for longer or consider additional tightening if price pressures remain persistent.
Market participants will continue monitoring upcoming inflation reports, employment data and corporate earnings to determine whether the economy can maintain growth without reigniting inflation.
Strong corporate spending on artificial intelligence infrastructure has become another important factor, as continued investment could support economic growth while also contributing to higher demand across parts of the technology supply chain.
Risk Alert
Although AI-related stocks rebounded strongly on Thursday, analysts continue to warn that valuations across parts of the semiconductor sector remain historically high. Rapid gains in a small group of companies can increase market volatility if future earnings fail to meet investor expectations.
In addition, inflation remains above the Federal Reserve's target despite easing oil prices. Future economic data, central bank decisions, geopolitical developments, and changes in energy markets could all influence investor sentiment and increase short-term market swings.
Investors should recognize that intraday market moves can change significantly before the closing bell, particularly during periods of elevated volatility.
Sources & Verification Notes
Primary Sources
- U.S. Department of Commerce, Bureau of Economic Analysis (BEA): May 2026 Personal Income and Outlays report (PCE Price Index).
- Micron Technology: Fiscal Q3 2026 earnings release and investor materials.
Market Data
- Dow Jones Industrial Average.
- S&P 500 Index.
- Nasdaq Composite.
- U.S. Treasury market data.
- Brent and WTI crude oil futures.
Supporting Reporting
- Reuters: Global markets wrap and semiconductor sector coverage. (https://www.reuters.com/world/china/global-markets-wrapup-1-2026-06-25/)
- Associated Press: Wall Street market recap and sector performance. (https://apnews.com/article/119e56cb6b1fc041b46af9bb778bdf07)
- The Wall Street Journal: Live U.S. market coverage. (https://www.wsj.com/livecoverage/stock-market-today-dow-sp-500-nasdaq-06-25-2026)
Verification Notes
- All market commentary is based on trading activity during Thursday, June 25, 2026.
- Intraday prices, index levels and percentage gains may differ from official closing values because markets remained open at the time covered by this report.
- Company share-price movements and macroeconomic data have been cross-checked against multiple financial news organizations and official government releases where available.