New York Stock Market Closes Mixed as Big Tech Faces Cost Pressures

[Anchor] Here is the latest from the New York stock market. The three major U.S. stock indices closed mixed. While the Nasdaq and S&P 500 indices ended slightly lower due to concerns over cost burdens in the tech sector, the Dow Jones Industrial Average saw a slight gain as buying interest flowed in. By sector, consumer discretionary and communication services both saw corrections of over 1% as concerns about margin pressure from rising semiconductor prices came to the fore. In today's market, the indices were pressured by fears that the surge in component prices, driven by the expansion of artificial intelligence data centers, could lead to deteriorating earnings for finished product suppliers. The Personal Consumption Expenditures (PCE) price index for May, a key inflation gauge closely watched by the Federal Reserve, rose 0.4% month-over-month and 4.1% year-over-year. The core PCE price index, which excludes food and energy, also rose 3.4% from a year ago, marking its highest level since October 2023. However, as the figures were in line with expectations despite inflationary pressures from the Middle East conflict, concerns over inflation eased somewhat, and Treasury yields actually trended downward. Regarding individual stocks, despite Micron Technology's earnings surprise the previous day, the cost burdens of Big Tech companies were highlighted. Apple plunged over 6%, leading the decline in the Nasdaq, after announcing price hikes for MacBooks and iPads due to semiconductor shortages and surging component costs. Microsoft also fell by over 3% in the wake of console price increases. As the rise in semiconductor prices spreads concerns about the profitability of Big Tech companies, the sell-off centered on tech stocks is expected to continue for the time being.
※ Please note: This article was translated by AI and may contain errors.