Market Overview

On Wednesday, U.S. equity markets traded mixed as investors awaited Micron Technology’s quarterly earnings. At 13:23 ET (17:23 GMT) the S&P 500 index was down 0.1% at 7,360.94 points, the Nasdaq Composite slipped 0.3% to 25,516.22 points, while the Dow Jones Industrial Average rose 0.4% to 51,874.40 points, bringing the Dow close to its intraday record high.

Technology Sector Sentiment

The technology sector remained subdued ahead of Micron’s results. Micron Technology shares fell 2.9% in pre‑market trading. The S&P 500 technology sub‑index declined 0.9%, and the Philadelphia Semiconductor Index, a key barometer for chip makers, dropped 1.5% after having slumped nearly 8% the previous day.

South Korean Mega‑Cap Activity

South Korea’s market rallied on the same day. Samsung Electronics’ K‑stock jumped almost 10% after a Yonhap news report indicated the company was contemplating a share buyback of roughly 90 trillion won (approximately $58.38 billion) to fund stock‑based employee compensation tied to its 2026 performance, though no timing or final size had been confirmed. SK Hynix’s K‑stock rose about 1% as the company disclosed a board resolution to list American Depositary Shares (ADS) on Nasdaq under the ticker “SKHY.” The filing did not disclose the exact number of ADS, but the board approved a maximum of 17.79 million shares, which, based on the closing price of 2.555 million won and the prevailing USD/KRW rate, translates to a potential offering size of roughly $29.40 billion, making it the second‑largest share sale since SpaceX’s IPO earlier this month.

Oil Prices and Inflation Outlook

Crude oil prices continued their decline, with U.S. West Texas Intermediate (WTI) futures for August briefly slipping below $70 per barrel—the first sub‑$70 close since early March. The price retreat followed a brief spike after the joint U.S.–Israeli attack on Iran and the temporary closure of the Strait of Hormuz, which had previously driven oil to historic highs. The slide in oil prices reduced inflationary pressures and prompted market participants to trim expectations for further Federal Reserve rate hikes this year, easing the previously heightened odds of additional hikes.

Upcoming Economic Data

All eyes turned to Thursday’s release of the May core Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge, and a revised estimate of U.S. Q1 GDP growth. Analysts noted that demand destruction in Asia and Europe, reflected in oil price declines, could signal a peak in PCE inflation.

Market Commentary

Oliver Pursche, senior vice‑president at Wealthspire Advisors, described the recent chip‑stock sell‑off as a normal market‑cycle correction, noting that AI‑related stocks, after sharp run‑ups, are vulnerable to profit‑taking and short‑selling but that the underlying fundamentals of the U.S. economy remain strong. He added that lower oil prices provide additional reasons to expect a pickup in GDP growth over the next few months.

Joseph Brusuelas, principal and chief economist at RSM US, cautioned that the recent dip in Brent crude to pre‑war levels suggests the peak in PCE inflation may be imminent and that calls for multiple Fed rate hikes are premature, even as service‑sector inflation and AI‑driven resource competition persist.

Summary of Key Figures

  • S&P 500: 7,360.94 (‑0.1%)
  • Nasdaq Composite: 25,516.22 (‑0.3%)
  • Dow Jones: 51,874.40 (+0.4%)
  • Micron Technology: ‑2.9% pre‑market
  • S&P 500 Technology: ‑0.9%
  • Philadelphia Semiconductor Index: ‑1.5%
  • Samsung Electronics stock: +≈10% on buyback speculation
  • SK Hynix ADS offering: up to 17.79 million shares (~$29.4 bn)
  • WTI crude: briefly below $70/barrel