Wall Street Mixed as Apple Price Hikes Offset AI Chip Gains

Wall Street ended mixed on June 25, 2026, as significant losses in Big Tech offset a rally in the semiconductor sector. Apple Inc. saw its shares drop 6.1% after the company increased prices for iPads, MacBooks, and home devices to counter rising chip costs. Similar declines hit Microsoft and Alphabet, though chipmakers such as Micron Technology and Sandisk surged 15.7% and 22% respectively, driven by strong AI demand and earnings forecasts.

Market volatility was fueled by conflicting economic signals. The U.S. Department of Commerce reported that May inflation rose above 4% for the first time in three years, prompting some traders to anticipate a Federal Reserve interest rate hike. Conversely, the Federal Reserve's preferred inflation gauge rose 0.4% in May, which was lower than economist estimates and led bond traders to reduce expectations for near-term hikes.

The volatility spilled over into Asian markets on June 26, where tech-heavy indices like South Korea's Kospi dropped 1.8%, led by losses in Samsung Electronics and SK Hynix. In other corporate news, Merck KGaA agreed to acquire Bio-Techne Corp for approximately $11.3 billion.