The S&P 500 finished little changed on Thursday as investors rotated out of technology stocks despite a blockbuster earnings report from Micron Technology Inc. (NASDAQ:MU), with Polymarket traders turning cautious ahead of Friday’s opening bell.
The S&P 500 slipped 0.01% to close at 7,357.49. Polymarket’s June 26 contract now implies just a 40% probability that the benchmark index will open higher on Friday.
Why That Number Matters
The latest bout of weakness suggests investors are becoming increasingly concerned about the rising costs of artificial intelligence infrastructure rather than demand for AI itself.
While Micron shares surged nearly 16% after delivering stronger-than-expected quarterly results and Qualcomm (NASDAQ:QCOM) gained after raising its long-term revenue outlook, investors continued rotating away from large-cap technology names. Shares of Apple (NASDAQ:AAPL) fell 6% after announcing price hikes on MacBooks and iPads, while Microsoft‘s (NASDAQ:MSFT) stock dropped more than 3% after raising Xbox console prices, fueling concerns that higher semiconductor costs could begin squeezing margins across the broader technology sector.
Meanwhile, May’s Personal Consumption Expenditures index — the Federal Reserve’s preferred inflation gauge — came in broadly in line with expectations, offering some relief that inflation pressures are not accelerating faster than anticipated despite recent geopolitical tensions.
The Countercase
Micron’s earnings reaffirmed that AI-related demand remains robust. However, technology stocks remain under pressure globally, with semiconductor-related weakness spreading across Asia and Europe. South Korea’s Kospi fell nearly 8%, Japan’s Nikkei lost more than 5% on Friday, while European markets also opened lower as investors questioned whether soaring AI infrastructure costs could eventually weigh on corporate profitability.
Market strategists also warn that shifting Federal Reserve expectations, combined with increasingly expensive semiconductor supply chains, could keep volatility elevated even as inflation data remains broadly under control.
S&P 500 futures edged 0.37% lower early Friday.
How The Previous Bet Played Out: The S&P 500 opened at 7,404.91, above Wednesday’s close of 7,358.22, meaning the June 25 Polymarket bet resolved “Up.” The contract recorded about $166,968 in traded volume before settling.
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