Markets split sharply on Wednesday as lower oil prices eased inflation fears, but pressure on technology stocks, crypto assets and precious metals kept investors focused on risk.
Key Takeaways:
Micron earnings on June 24 could reset artificial intelligence (AI) chip sentiment after a 4% Nasdaq slide. Bitcoin fell below $60K as $169.28M in BTC liquidations hit crypto markets.Brent near $74 helped ease U.S. inflation fears as 10-year yields fell 9 basis points.By midday June 24, the Dow Jones Industrial Average traded near 51,828, up about 163 points, while the S&P 500 slipped 0.11% to roughly 7,357. The Nasdaq Composite fell 0.37% to about 25,491, and the Russell 2000 gained 0.26%.
The mixed session followed a two-day, tech-led selloff that dragged the Nasdaq down about 4%. Investors continued to rotate away from high-valuation artificial intelligence and semiconductor names after a long rally left the trade vulnerable to profit-taking and sharper scrutiny.
AI Trade Faces a Harder TestThat weakness carried into U.S. semiconductor shares as investors questioned whether AI-driven memory demand can justify the sector’s valuations. The market is now watching whether hyperscalers and other large technology firms can keep funding aggressive data center spending without damaging margins or balance sheets.
Micron Technology moved into focus ahead of its fiscal third-quarter earnings after the close. Wall Street expected a powerful year-over-year growth tied to high-bandwidth memory and DRAM demand for AI data centers, but investors were looking beyond headline results. Guidance, margins and management’s read on AI demand were likely to carry more weight.
Oil Drop Shifts Inflation Outlook
