US Stock Market Trends (June 26): Apple Plummets 6%, Micron Soars 15%; Memory Cost Pressures Ripple Downstream from Chips
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US Stock Market Trends (June 26): Apple Plummets 6%, Micron Soars 15%; Memory Cost Pressures Ripple Downstream from Chips
A profit revaluation is underway, spreading from foundational chips downstream to consumer electronics.
Navigating Web3 tides with focused insightsBy: Tide Research
On Thursday, U.S. equities sharply diverged amid the pass-through of rising memory storage costs. Micron surged over 15%, SanDisk jumped more than 20%, and memory chips’ pricing power awakened—yet Apple plunged 6%, leading declines among the “Magnificent Seven” tech giants. The world’s most profitable tech company was forced to announce global price hikes: MacBook Air rose by $200, and iPad Air increased by 25%. Microsoft followed suit, raising Xbox prices for the third time in 13 months. A profit revaluation is now unfolding—from foundational chips up through downstream consumer electronics.
Market Performance
The S&P 500 edged down 0.01% to 7,357.49; the Nasdaq fell 0.46% to 25,358.60; and the Dow Jones Industrial Average rose 0.14% to 51,920.62. The Nasdaq declined for four consecutive trading days, with broader tech indices under sustained pressure—but internal divergence intensified. Micron soared over 15%, SanDisk surged more than 20%, and Western Digital gained 4.90%; chip stocks rallied broadly, with Qualcomm up nearly 4% and AMD gaining 2.5%. The entire memory and semiconductor ecosystem advanced against the broader market trend. In contrast, Apple dropped 6% and Microsoft fell 3.46%, with most of the Magnificent Seven under pressure.
In commodities, Bitcoin slid 2.10% to $59,771.90; gold rose 0.6% to reclaim the $4,000 level; the U.S. dollar ended its six-day winning streak, declining 0.15%. Oil rebounded: WTI crude rose 2.25% to $71.92, and Brent crude climbed 2.06% to $75.26.
Macroeconomic & Forward-Looking Insights
Thursday’s May PCE data showed the overall price index rising 4.1% year-on-year, while core PCE hit a three-year high of 3.4% YoY. Markets briefly dipped following the release but later stabilized somewhat in bond trading. The 2-year Treasury yield fell two basis points to close at 4.13%, while the 10-year yield held steady at 4.39%. Investors are digesting this data as “somewhat hot—but not dire.”
Apple’s pricing announcement most directly reveals the root cause. Tim Cook explicitly attributed the hike to elevated memory chip costs, calling it a “once-in-a-century” situation. Micron’s last-quarter data center revenue reached $11.5 billion—nearly 70% above expectations—driving demand-driven price increases across memory. As downstream consumer electronics manufacturers, Apple and Microsoft are now forced to pass on these costs. Microsoft stated that memory component prices have already risen more than 2.5-fold and may double again by 2027—the three consecutive Xbox price hikes reflect precisely this cost-pass-through pressure.
This signals a shift in supply chain pricing power. Fueled by AI chip demand, Micron has gained exceptional bargaining leverage, compelling traditional consumer electronics firms to choose between raising prices or squeezing margins. Apple chose the former—and markets responded with a 6% drop.
Tide Research Perspective
Thursday’s market action resembled a textbook illustration of supply chain dynamics. Micron’s 15% surge reflected confidence rooted in scarcity: “Our products are globally in short supply—prices are set by us.” Apple’s 6% decline reflected concern: “We’re forced to raise prices—but the market fears this will hurt sales.” Market judgment on this profit revaluation is clear: upstream hardware winners are already decided; downstream consumer electronics players are bleeding.
The 3.4% core PCE reading—a relatively “hot” figure—would normally weigh on tech valuations. Yet this week’s market movement was overridden by a stronger narrative: whoever holds pricing power wins. Chipmakers directly benefiting from AI infrastructure—Micron, SanDisk, Qualcomm—are rallying; large consumer-facing tech firms like Apple and Microsoft, which must absorb and pass on rising input costs, are falling.
How long this divergence lasts depends on whether downstream players can absorb price hikes and whether consumer demand remains resilient enough. Judging from Thursday’s market action, Wall Street has already placed its bet: AI chip momentum > consumer electronics margin defense.
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