Nasdaq Takes the Hit as Apple's Price Increases Rattle Big Tech

Thursday's session was another reminder that the market's weak spot is still concentrated in mega,cap tech. The Nasdaq Composite fell 118.03 points, or 0.46%, to 25,358.60, while the S&P 500 finished near flat at 7,357.49. The Dow Jones Industrial Average outperformed again, helped by rotation into less rate,sensitive names and broader cyclicals, even as the tech complex came under pressure, according to Reuters and market data from Yahoo Finance and Bloomberg.

The key difference from earlier sessions is the angle. This wasn't just another chip wobble. Investors zeroed in on whether the cost of AI build,outs is starting to squeeze margins and spill into end prices. Apple dropped 6.1% after raising prices on iPads and MacBooks to offset surging memory and storage chip costs, a move Reuters said amplified broader concern about who ultimately pays for the AI capex boom. That kept pressure on the whole megacap complex even though the broader market was more resilient under the surface, with more stocks advancing than the major indexes suggested, per Reuters and Barron's.

Micron's Blowout Wasn't Enough to Save the Tape

There was good news in semis, but it didn't carry the index. Micron's upbeat results and guidance revived the AI memory trade, and Reuters also pointed to supportive commentary from Qualcomm. Even so, traders used strength in parts of the chip space to keep selling the expensive leadership cohort. The market message was blunt: strong AI demand is no longer enough on its own if investors worry the spending bill is getting too large and margins are at risk, according to Reuters and Investopedia.

That leaves traders with a more selective setup going into Friday. Memory and some AI,adjacent names still have earnings momentum, but the market is increasingly distinguishing between companies selling the picks and shovels and those funding massive infrastructure spend. If that distinction holds, index,level performance may keep lagging breadth.

PCE Inflation Reaccelerates and Keeps the Fed in No Hurry

The bigger macro development came from inflation. The Bureau of Economic Analysis reported that the PCE price index rose 4.1% in May from a year earlier, up from 3.8% in April. That is the Fed's preferred inflation gauge, and the direction matters more than anything else here: inflation accelerated again, not cooled, according to the BEA.

That helps explain why bond traders stayed cautious and why equities struggled to build on early gains. The Fed held rates steady at its June meeting, but the combination of sticky inflation and renewed concern about tech,led price pass,through gives policymakers little reason to signal imminent easing, based on the June decision coverage from CNBC and the fresh PCE data from the BEA.

Treasury Yields Stay Elevated as Rate,Cut Bets Get Pushed Back

Higher,for,longer is still the bond market's base case. The U.S. Treasury's daily curve showed the 2,year yield at 4.37%, the 10,year at 4.81%, and the 30,year at 4.86% for June 25. That keeps the long end elevated and reinforces the idea that inflation risk has not gone away, according to the U.S. Treasury.

For equities, that's the tension. Higher yields are not yet breaking the market, but they are capping valuation expansion in the longest,duration parts of tech. If Friday trading brings another rise in the 10,year, expect renewed pressure on software, semis and other rate,sensitive growth names. If yields ease, beaten,up quality tech could finally get a bounce.

Oil Jumps on Middle East Tensions While Gold Stays in a Tug of War

Commodities were more animated than stocks. Bloomberg market data showed crude around $69.34 a barrel, up 3.59% on the day, as traders reacted to renewed Middle East tension. That is a notable reversal after the recent oil slide and it matters for inflation psychology just as PCE reaccelerates, according to Bloomberg and broader market reporting cited by Investopedia.

Gold, meanwhile, remained caught between competing forces. Bloomberg showed spot gold near $4,068.80, up 0.52%, but the metal still faces a harder backdrop if real yields stay firm and the dollar remains supported. That leaves gold trading less like a clean inflation hedge and more like a geopolitical and rates hedge, depending on which theme dominates hour by hour, with the broader pressure from yields highlighted in commodity reporting carried by Yahoo Finance.

Crypto Stays Fragile Below Key Levels

Crypto is still trading like a risk asset, not a safe haven. Bitcoin changed hands around $60,164, after dipping as low as $58,075 over the last 24 hours, according to CoinMarketCap. Ethereum was around $1,636, down 2.06% from the prior day, according to Fortune.

The actionable level for traders is clear enough. Bitcoin reclaiming and holding above $60,000 would steady sentiment, but failure there keeps downside pressure alive and raises the odds of more forced selling in crypto,linked equities. In a session where tech and speculative growth already looked shaky, that feedback loop matters.

What to Watch Today

Whether the Nasdaq can stabilize after a fourth straight decline and whether selling in Apple spills into the rest of the Mag 7.
Treasury yields, especially the 10,year after Thursday's 4.81% reading from the U.S. Treasury.
Follow,through from the May PCE report and any shift in Fed,cut pricing after the BEA showed inflation at 4.1%.
Crude oil after Thursday's 3.59% jump to about $69.34 on Bloomberg data, especially if geopolitical headlines intensify.
Semiconductor leadership after Micron's strong print. Traders should watch whether chip strength broadens or remains isolated.
Bitcoin at $60,000 and Ethereum around $1,600 for signs that risk appetite is stabilizing or deteriorating further.