STOCKS | Apple-Led Megacap Slide Wipes Out Stock Gains

According to Bloomberg, a selloff in technology megacaps erased earlier stock market gains on Thursday, with all seven members of the Magnificent Seven retreating and Apple Inc. leading the decline after raising prices on Macs and iPads as a memory crunch drives costs higher.
The S&P 500 fell 0.4% as losses in its largest constituents overshadowed gains across the majority of its shares, while the Nasdaq 100 dropped 0.5% and the Dow Jones Industrial Average rose 0.4%. A rally in chipmaker shares faded despite a blowout outlook from Micron Technology.
Earlier equity strength had been driven by data showing US consumer spending accelerated 0.3% in May even as PCE inflation hit 4.1% — the fastest pace since April 2023 — and first-quarter GDP was revised up to an annualized 2.1%.
"The worst of inflation and consumer angst may be mostly behind us," said Brian Jacobsen at Annex Wealth Management, adding that lower gasoline prices should drag inflation expectations down in coming months. Brent crude erased all of its wartime gains as Strait of Hormuz oil flows ramped up following progress on a US-Iran peace deal, while short-dated Treasuries outperformed.
The 10-year Treasury yield declined two basis points to 4.37%. In corporate news, Qualcomm jumped after forecasting more than $15 billion in annual AI data center component sales by fiscal 2029, Jefferies posted Q2 earnings that missed estimates on declining fees, Olive Garden same-store sales trailed expectations at Darden Restaurants, and McCormick beat Q2 profit estimates on higher prices and a tariff refund.