U.S. stocks open mixed: technology giants diverge, Micron’s sharp plunge sparks concerns about the chip sector

On the evening of Friday (June 26), the three major U.S. stock indexes all opened lower, as market sentiment appeared quite cautious with the end of the quarter approaching. The Dow Jones Industrial Average opened down 0.44%, the S&P 500 fell 0.67%, and the Nasdaq Composite, led by technology stocks, recorded the largest decline, down 1.1%, reflecting investors’ lingering unease about the pullback pressure on overvalued growth stocks.

Judging from the early performance of individual stocks, popular tech stocks showed a clear pattern of divergence, with Micron Technology (MU.O) ’s plunge standing out especially. The stock opened down 6% immediately, becoming an important drag on the semiconductor sector and the Nasdaq. With recent market debate over whether the supply-and-demand relationship for memory chips could reverse and whether the recovery momentum in downstream consumer electronics can be sustained, Micron’s steep drop may signal that capital is temporarily stepping back from the earlier hardware hype.

Meanwhile, SpaceX (SPCX.O), seen as a “retail sentiment barometer,” also fell 1.8%, indicating that some speculative funds chose to exit and watch ahead of the weekend. By contrast, consumer electronics giant Apple (AAPL.O) demonstrated strong resilience against the selloff, opening slightly up 0.1%. In an environment where risk appetite declines, capital still tends to embrace “cash cow” assets with steady cash flows and strong competitive moats.

Market Watch: The Tug-of-War Between Fast and Slow

The sharp divergence on the tape essentially reflects the capital market’s indecision between “seeking safety” and “taking risks.” On one hand, inflation data and the Federal Reserve’s future interest-rate path remain the Sword of Damocles hanging overhead; on the other hand, the valuation bubble fueled by the AI wave is undergoing harsh market scrutiny.

For investors, worries about Micron Technology’s earnings guidance that are lingering in the background—together with the Nasdaq’s decline of more than 1%—serve as a reminder that institutional portfolio reshuffling at quarter-end often intensifies volatility. Apple’s strength despite the odds once again proves that in an environment full of uncertainty, the certainty of earnings quality is the core asset for withstanding market swings.

Outlook: Focus on Interest-Rate Expectations and Earnings Season

As the second quarter comes to a close, the market’s attention is turning to the upcoming earnings season. Whether companies can deliver results that exceed expectations—matching today’s not-cheap valuations—will be key in determining the direction of the next phase of the market. In the short term, if core tech stocks such as Micron fail to regain ground during trading, the overall valuation repair pressure on the technology sector may further spill over to other AI-related concept stocks.
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