Micron Technology reported disappointing earnings, causing its stock price to decline along with other chipmakers.
Orders placed with factories for business equipment unexpectedly declined.
Pending existing-home sales decreased due to elevated mortgage rates and high prices.
Recurring applications for jobless benefits reached their highest level since the end of 2021.
In a significant development on June 27, the stock market witnessed notable fluctuations as various economic reports emerged, reinforcing speculations that the Federal Reserve may cut interest rates this year to prevent a larger US slowdown. The world's largest bond market experienced an uptick after these economic reports surfaced. Treasuries climbed across the curve as data revealed that recurring applications for jobless benefits reached their highest level since the end of 2021, while orders placed with factories for business equipment unexpectedly declined.
According to an index of pending existing-home sales, prospective buyers were discouraged due to elevated mortgage rates and high prices. The Dow Jones Industrial Average, S&P 500, and Nasdaq composite all experienced fluctuations throughout the day as investors reacted to various reports. Among them was Micron Technology (MU), which plunged after reporting its earnings the previous day.
Wall Street also kept a close eye on the ongoing presidential debate between Democrat Joe Biden and Republican Donald Trump, with investors attempting to predict potential policy changes that could impact businesses and investments. The first debate provided mixed signals as investors digested economic data alongside disappointing guidance from chipmaker Micron, which led to a decline in stock prices for both Micron and other chipmakers such as Nvidia, Arm Holdings, and Broadcom.
The Dow Jones Industrial Average reversed higher on Thursday.
The S&P 500 gained 0.1% after the opening bell.
The tech-focused Nasdaq composite climbed 0.3% in morning trades.
Accuracy
Micron Technology reported earnings and disappointed investors with its forecast for the current quarter, causing its stock to plunge nearly 6% in morning trading.
Micron's stock fell over 5% following the earnings release.
Accuracy
Other chipmaking stocks also declined after Micron’s disappointing guidance.
Deception
(80%)
The article contains selective reporting as it focuses on Micron's disappointing guidance and the subsequent impact on other chipmakers, while not mentioning the strong earnings report or the fact that Micron's revenue still came in higher than expected. The author also uses emotional manipulation by stating 'sentiment was hit' and 'most eyes will be on Friday’s CPI.'
Most eyes will be on Friday’s CPI.
Sentiment was hit Thursday after the release of earnings from Micron Technology (NASDAQ:), a company often seen as an industry bellwether due to its exposure to varied chip types and customers.
The in-line revenue guidance disappointed investors who were expecting more, especially given that Micron more than doubled in value over the past year.
