Tech Rout Deepens as Chipmakers Face Market Correction

Micron Technology led the retreat with a 6.4% drop in premarket trading, erasing a portion of the 15% gains recorded just a session prior. The selling pressure extended to industry titans, with Intel and Advanced Micro Devices sliding more than 3.5% each, while Nvidia shed 1.7%. These declines place both the S&P 500 and Nasdaq on track for significant weekly losses, underscoring a sudden shift in market sentiment.

Adding to the unease, Apple’s recent decision to hike prices on iPads and MacBooks—citing the rising cost of memory and storage components—has reignited concerns over consumer-facing inflation. This follows a brutal Thursday session for Apple, which saw its stock plummet 6.1%, the steepest single-day drop in over a year. Peter Cardillo of Spartan Capital Securities notes that the broader sell-off is increasingly tied to expectations of higher interest rates. The climate is further complicated by U.S. inflation data showing a rise above 4% in May, a three-year high driven by energy costs and persistent geopolitical tensions in the Middle East.