US Stock Market Trends (June 26): Apple Plunges 6%, Micron Surges 15%, Storage Cost Pressure Is Transmitting from Chips to Downstream

Written by: TideTrend Research

On Thursday, U.S. stocks showed a clear split as storage costs were transmitted through the supply chain. Micron surged more than 15%, while SanDisk jumped more than 20%, signaling a revival of pricing power for memory chips. Apple, however, led the decline among the tech “Magnificent Seven,” falling 6%. Forced to announce global price increases, the world’s most profitable tech company said MacBook Air would rise by $200 and iPad Air would increase by 25%. Microsoft followed shortly after, raising Xbox prices three times within 13 months. A profit revaluation—cascading from underlying chips down to downstream consumer electronics—is now unfolding.

Market Performance

The S&P 500 fell 0.01% to 7,357.49 points, the Nasdaq declined 0.46% to 25,358.60 points, and the Dow rose 0.14% to 51,920.62 points. The Nasdaq dropped for four straight trading sessions, with the tech complex under continued pressure, but internal divergence was especially intense. Micron surged more than 15%, SanDisk jumped more than 20%, and Western Digital rose 4.90%. Chip stocks strengthened in step: Qualcomm rose nearly 4%, and AMD gained 2.5%, as the entire storage and chip ecosystem moved higher against the trend. By contrast, Apple fell 6% and Microsoft dropped 3.46%, leaving most of the tech “Magnificent Seven” under pressure.

In commodities, Bitcoin fell 2.10% to $59,771.9, while gold rose 0.6% and reclaimed $4,000. The dollar ended a six-day winning streak, down 0.15%. Oil prices rebounded: WTI rose 2.25% to $71.92, and Brent rose 2.06% to $75.26.

Macro and Outlook

May PCE data was released on Thursday. The price index rose 4.1% year over year, and core PCE increased 3.4% year over year to a three-year high. After the data came out, the market briefly pulled back, but then the bond market eased. The 2-year U.S. Treasury yield fell 2 basis points to close at 4.13%, while the 10-year yield was roughly flat to close at 4.39%. The market was digesting this “a bit hot, but not desperate” data.

Apple’s price-hike statement most directly explains what’s going on. Cook said clearly that it was the result of soaring storage chip costs, calling it a “once-in-a-century” situation. Micron’s last-quarter data center revenue was $11.5 billion, nearly 70% above expectations. This excess demand pushed up storage prices, and Apple and Microsoft—as downstream consumer electronics manufacturers—are being forced to pass those costs along. Microsoft said storage component prices have risen by more than 2.5 times and expects they will double again by 2027. The three consecutive Xbox price increases reflect exactly this pressure cascading down to the downstream.

This represents a shift in pricing power across the industrial chain. Under the boom in AI chips, Micron gained very strong bargaining power, forcing traditional consumer electronics companies to choose between raising prices or compressing margins. Apple chose to raise prices, and the market responded with a 6% drop.

TideTrend Perspective

Thursday’s move looked like the most straightforward textbook example of an industrial-chain story. Behind Micron’s 15% gain is the confidence of “our products are globally in tight supply, so we set the price.” Behind Apple’s 6% drop is the worry of “I’m forced to raise prices, but the market thinks this will hurt sales.” The market’s view on this profit revaluation is already clear: the winners at the upstream hardware level are effectively decided, while downstream consumer electronics is bleeding.

The 3.4% “slightly hot” PCE reading would normally weigh on tech stock valuations, but this week’s trading was dominated by a stronger logic: whoever controls pricing power wins. Micron, SanDisk, and Qualcomm—chip companies that directly benefit from AI infrastructure—are rising, while Apple and Microsoft—large companies that need to transmit costs to consumers—are falling.

How long can this divergence last? It depends on whether downstream players can absorb the magnitude of the price hikes and whether consumer demand is resilient enough. Judging from Thursday’s market positioning, Wall Street has already placed its bet: AI chip upcycle > downstream consumer electronics profit defense.