US close: Stocks mixed after hotter PCE inflation, tech‑led Nasdaq decline

25th Jun 2026 22:57

(Sharecast News) - Major indices delivered a mixed performance on Thursday as market participants digested a key inflation reading and better-than-expected quarterly earnings from Micron Technology failed to lift the tech-heavy Nasdaq.

At the close, the Dow Jones Industrial Average was up 0.14% at 51,920.62, while the S&P 500 dipped 0.01% to 7,357.49 and the Nasdaq Composite saw out the session 0.46% weaker at 25,358.60.

The Dow closed 71.72 points higher on Thursday, extending gains recorded in the previous session amid falling crude prices.

Thursday's primary focus was news that US inflation accelerated in May, with the Federal Reserve's preferred gauge posting its fastest core increase since 2023, according to the Bureau of Economic Analysis. The core personal consumption expenditures price index, which strips out volatile food and energy prices, rose 0.3% on the month and 3.4% year-on-year, both matching expectations. The annual rate was the highest since October 2023. Headline PCE inflation increased 0.4% on the month and 4.1% on the year, the strongest annual reading since April 2023. The monthly figure came in slightly below forecasts.

The BEA's report showed that inflation pressures remain broad‑based, with energy‑driven price rises earlier in the year continuing to filter through the economy. Despite the elevated readings, consumer spending was stronger than expected, with personal consumption expenditures rising 0.7%, outpacing inflation, while personal income also climbed 0.7%, well above the 0.4% forecast.

Elsewhere on the macro front, US economic growth was revised higher in the first quarter, with real gross domestic product now estimated to have increased at an annualised 2.1% pace, according to the Bureau of Economic Analysis, following 0.5% growth in the final quarter of 2025. The upward revision of 0.5 percentage points from the second estimate primarily reflected a downward revision to imports, which subtract from GDP, partly offset by a softer reading on consumer spending. The BEA said first‑quarter growth was supported by investment, exports, government spending and consumer spending, while imports increased.

On another note, Americans lined up for unemployment at a decelerated rate in the week ended 20 June, according to the Department of Labor, with initial jobless claims dropping by 12,000 to 215,000. The previous week's level was upwardly revised by 1,000 from 226,000. The four-week moving average, which aims to strip out week-to-week volatility, came to 224,250, an increase of 750 from the previous week's revised average, while continuing claims increased by 21,000 to 1.82m. Also of note, the advance seasonally adjusted insured unemployment rate came to 1.2% for the week ended 13 June, unchanged from the previous week's unrevised rate.

Still on data, US economic activity softened in May, with the Chicago Fed National Activity Index slipping to a reading of -0.10 from an upwardly revised +0.19 in April, according to the Federal Reserve Bank of Chicago. Two of the index's four broad categories weakened on the month, and three made negative contributions overall. Production‑related indicators contributed -0.04, down sharply from +0.23 in April, while employment indicators also contributed -0.04, compared with +0.05 previously. The personal consumption and housing category again contributed -0.04, unchanged from April. The only positive contribution came from sales, orders and inventories, which improved to +0.02 from -0.04.

Finally, factory activity in the Kansas City Federal Reserve region strengthened sharply in June, with the district's manufacturing production index rising to 19 from 9 in May - its highest level since April 2022. Growth was led by the durable goods sector, particularly transportation equipment, while food manufacturing supported gains in non-durables. The new orders index held steady at 13, while shipments jumped to 20 from 7 and employment rebounded to 10 from -4. New export orders moved back to 0 from -3, and supplier delivery times shortened to 16 from 24. However, price pressures intensified, with prices paid for raw materials rising to 68 from 63, while prices received for finished goods increased to 33 from 29.

Micron remained in focus throughout the session after the chipmaker reported a sharp acceleration in growth in its third quarter, with revenues more than quadrupling as demand linked to the artificial‑intelligence boom continued to surge. Micron Technology said revenues came in at $41.46bn, well ahead of the $35.84bn expected, while adjusted earnings per share of $25.11 also beat forecasts of 20.78 per share. Sales were up from $9.3bn a year earlier.

Elsewhere in the corporate space, healthcare, financial and industrial names helped lift the Dow Jones on Thursday, with Johnson & Johnson up around 1% and Caterpillar jumping 6%. Tech stocks, however, weighed on the Nasdaq, with Apple falling 6% after announcing price increases for MacBook and iPad models, citing higher component costs, and Microsoft slipping 3.5% after revealing plans to raise prices on its Xbox consoles.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Caterpillar Inc. (CAT) $1,057.01 6.29%

Merck & Co. Inc. (MRK) $125.45 4.01%

Unitedhealth Group Inc. (UNH) $415.53 2.40%

Johnson & Johnson (JNJ) $244.88 1.61%

3M Co. (MMM) $167.97 1.26%

Amgen Inc. (AMGN) $352.82 0.94%

Verizon Communications Inc. (VZ) $46.07 0.85%

Home Depot Inc. (HD) $345.00 0.62%

JP Morgan Chase & Co. (JPM) $335.12 0.50%

Chevron Corp. (CVX) $172.24 0.46%

Dow Jones - Fallers

Apple Inc. (AAPL) $275.15 -7.05%

Microsoft Corp. (MSFT) $352.83 -6.32%

McDonald's Corp. (MCD) $264.54 -3.41%

Walt Disney Co. (DIS) $98.05 -3.09%

Procter & Gamble Co. (PG) $148.50 -2.33%

Nike Inc. (NKE) $40.90 -2.20%

International Business Machines Corporation (CDI) (IBM) $258.27 -1.80%

Salesforce.Com Inc. (CRM) $150.19 -1.68%

Goldman Sachs Group Inc. (GS) $1,065.09 -1.10%

Cisco Systems Inc. (CSCO) $118.97 -1.08%

S&P 500 - Risers

Applied Materials Inc. (AMAT) $668.00 14.10%

Micron Technology Inc. (MU) $1,213.56 13.84%

Corning Inc. (GLW) $228.01 10.78%

Lam Research Corp. (LRCX) $401.82 8.37%

Revvity, Inc. (RVTY) $113.53 7.48%

KLA-Tencor Corp. (KLAC) $258.80 7.07%

Caterpillar Inc. (CAT) $1,057.01 6.29%

United Airlines Holdings Inc (UAL) $134.60 6.13%

Valero Energy Corp. (VLO) $255.06 5.21%

United Rentals Inc. (URI) $1,139.51 5.15%

S&P 500 - Fallers

Jefferies Financial Group Inc. (JEF) $52.64 -9.15%

Coterra Energy Inc. (CTRA) $32.56 -8.62%

Nektar Therapeutics (NKTR) $62.03 -7.78%

CME Group Inc. (CME) $225.00 -7.14%

Apple Inc. (AAPL) $275.15 -7.05%

Akamai Technologies Inc. (AKAM) $112.89 -6.47%

Nasdaq Inc (NDAQ) $77.65 -6.33%

Microsoft Corp. (MSFT) $352.83 -6.32%

Wynn Resorts Ltd. (WYNN) $99.38 -6.24%

Cognizant Technology Solutions Corp. (CTSH) $39.15 -6.14%

Nasdaq 100 - Risers

Applied Materials Inc. (AMAT) $668.00 14.10%

Micron Technology Inc. (MU) $1,213.56 13.84%

Lam Research Corp. (LRCX) $401.82 8.37%

KLA-Tencor Corp. (KLAC) $258.80 7.07%

Asml Holdings N.V. (ASML) $1,841.18 4.75%

American Airlines Group (AAL) $17.57 4.03%

PACCAR Inc. (PCAR) $121.68 3.88%

Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $485.52 3.79%

Kraft Heinz Co. (KHC) $23.47 3.67%

QUALCOMM Inc. (QCOM) $204.90 3.35%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

Trip.com Group Limited (TCOM) $40.49 -12.05%

Apple Inc. (AAPL) $275.15 -7.05%

Microsoft Corp. (MSFT) $352.83 -6.32%

Wynn Resorts Ltd. (WYNN) $99.38 -6.24%

Cognizant Technology Solutions Corp. (CTSH) $39.15 -6.14%

Ross Stores Inc. (ROST) $215.13 -5.36%

Baidu Inc. (BIDU) $103.99 -4.61%

Amazon.Com Inc. (AMZN) $227.01 -4.26%

Meta Platforms Inc. (META) $542.87 -4.20%