NEW YORK, June 25 (Xinhua) -- Major U.S. stock indexes ended mixed on Thursday, with weakness in mega-cap technology names offsetting gains in semiconductor stocks fueled by strong corporate earnings.
The Dow Jones Industrial Average rose 71.72 points, or 0.14 percent, to 51,920.62. The S&P 500 dipped 0.73 points, or 0.01 percent, to 7,357.49. The Nasdaq Composite Index shed 118.03 points, or 0.46 percent, to 25,358.6.
Six of the 11 primary S&P 500 sectors ended in the green, with industrials and health leading the gainers by rising 2.19 percent and 1.49 percent, respectively. Consumer discretionary and consumer staples led the laggards by going down 1.78 percent and 1.08 percent, respectively.
Micron Technology delivered record-setting quarterly results, beating expectations and providing upbeat guidance, which helped ease concerns over lofty AI valuations and spending. The company's shares surged more than 15 percent.
Qualcomm rose about 3.7 percent after announcing an expansion beyond smartphones into data center products, including chips and servers, with a target of 15 billion U.S. dollars in new revenues from the AI boom.
Meanwhile, Apple dropped 6.15 percent after the company announced price increases on MacBook and iPad products, citing higher component costs. Microsoft also lost 3.46 percent following news of price hikes on Xbox consoles.
On the inflation front, the U.S. Commerce Department reported that the personal consumption expenditures (PCE) price index, the Federal Reserve's preferred inflation gauge, rose 0.4 percent month over month in May, slightly below expectations, and 4.1 percent year over year. The core PCE index, excluding food and energy, increased 0.3 percent month over month and 3.4 percent year over year, both in line with forecasts.
Analysts noted that while inflation remains elevated, recent energy price developments could help moderate expectations. "We recognise that the Fed has missed its inflation target for the past five years, and Warsh wants to put an end to this trend. Nonetheless, consumer inflation expectations are within tolerable ranges... Meanwhile, market inflation expectations have plunged," said James Knightley, chief international economist at ING.
Investors will continue to monitor the evolving U.S.-Iran peace process and its impact on energy prices as well as upcoming corporate earnings for further direction on the market outlook.
