(Kaylee Greenlee/Bloomberg)
| Update:
key takeaways:
- US stocks rose on June 25, led by AI-powered chipmakers, with Micron rising 19.4% and Qualcomm gaining after strong results and forecasts.
- The rally reflects easing concerns about high valuations as strong earnings and falling oil prices have helped lower Treasury yields and stabilize inflation expectations.
- Investors are watching whether falling oil prices and inflation sustain low bond yields, which could support AI stocks facing pressure from elevated valuations.
New York – Another uptick in the roller coaster for artificial intelligence stocks is pulling the US market higher on June 25.
The price of a barrel of Brent crude, the international standard, fell 0.2% to $73.70 and is close to $72, the price just before the war with Iran. Oil has fallen well off its all-time high above $100 as the war has slowed global flows of oil due to the closure of the Strait of Hormuz.
A surge in oil prices earlier this year sent inflation sharply higher, and a report showed that inflation affecting US consumers rose from 3.8% in April to 4.1% last month. But it was no worse than economists expected, and there are hopes inflation may ease as oil prices fall.
That pushed the yield on the 10-year Treasury slip to 4.38% from 4.41% at the end of June 24 and 4.56% earlier this month.
The S&P 500 rose 0.6% to par its losses for the week. As of 9:35 a.m. Eastern time, the Dow Jones Industrial Average was up 307 points, or 0.6%, and the Nasdaq Composite was 0.6% higher.
Micron Technology helped lead the market with a jump of 19.4%. The maker of memory chips for computers reported stronger profit and revenue than analysts expected for the latest quarter, and it gave a stronger growth forecast than Wall Street expected. That helped ease some concerns that its stock had become too expensive after surging 267% so far this year.
Trump: “Gas prices are not falling that fast” GasBuddy data shows the decline is steeper than in 2022 when gas prices reached a record $5 a gallon – here’s a comparison of the peak date and 31 days after: pic.twitter.com/VQlkCnlz4s
– Patrick de Haan (@GasBuddyGuy) 25 June 2026
Micron and AI stocks broadly have been under pressure recently due to concerns that their profits may not be able to keep pace with the tremendous rallies in their stock prices. But beyond Micron, Qualcomm said late June 24 that the acceleration of the AI era is forcing it to upgrade forecasts for its growth in the coming years.
The chip company said it expects its revenue outside handsets, including data centers, to reach $40 billion in fiscal 2029, nearly double its previous target. Qualcomm shares rose 9.7%.
The broader US stock market was also boosted by a slide in Treasury yields in the bond market. They backed off after oil prices fell and reports showed inflation was behaving largely as economists expected.
Cox Fleet’s Kevin Clark discusses how fleets must rethink their maintenance strategies to remain efficient and flexible. Tune in by going above or RoadSigns.ttnews.com.
Higher yields in bond markets around the world are threatening slowing economies due to concerns about inflation, and they have already pushed rates for mortgages and other types of loans higher. High yields also hurt investment prices, especially those investments considered the most expensive. This increases the pressure on AI winners.
In stock markets overseas, South Korea’s Kospi jumped 5.4% after its own AI winners hit higher levels, including a 13.1% rise for SK Hynix.
Other markets also rose, including a 4.6% gain for Japan’s Nikkei 225 and a 0.8% gain for the United Kingdom’s FTSE 100. The 1.4% fall was an outlier for Hong Kong’s Hang Seng.
AP Business Writer Ellen Kurtenbach contributed to this report.
