Stock Market Today: SPY, QQQ Reverse Gains as Oil Descends; Tech Stocks Struggle
Complete. Here is the key summarySPY and QQQ reversed gains to close lower as tech stocks struggled. President Trump noted Iran's assurance on Strait of Hormuz fees and urged oil companies to lower gas prices. Alphabet will join the Dow Jones, replacing Verizon. Micron surged on strong earnings, while Qualcomm acquired Modular for $3.9B. Microsoft declined further amid data center water usage concerns.
Both the S&P 500 ETF (SPY) and the Nasdaq 100 ETF (QQQ) opened higher on Wednesday. However, the two ETFs were unable to hold the gains and finished the day in negative territory.
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News That Moved the Stock Market Today
- President Trump said Iran had notified the U.S. that it did not plan on charging fees for ships traveling through the Strait of Hormuz. He warned that the U.S. would immediately withdraw from negotiations if Iran changed its mind.
- Traffic through Hormuz has steadily recovered since the U.S.-Iran memorandum of understanding (MOU) was signed last week. Over the weekend, 37 oil tankers successfully crossed through the waterway. That was followed by another 27 on Monday and 14 on Tuesday.
- Trump also called on the Department of Justice (DOJ) to review why big oil companies haven't lowered gas prices in line with oil prices. Average gas prices across the U.S. have fallen 2% over the past week compared to Brent crude oil's (BZ) 8% decline.
- Alphabet's (GOOGL) Class A shares are set to join the Dow Jones (DJIA) on June 29. GOOGL will replace Verizon (VZ).
- Micron (MU) jumped after reporting revenue growth of 346% to $41.46 billion, above the estimate of $35.85 billion. Its adjusted EPS of $25.11 was also above expectations of $20.83.
- Tech and AI stocks continued to face pressure. Memory stocks Micron (MU), SanDisk (SNDK), and Western Digital (WDC) posted significant losses on the day.
- Qualcomm (QCOM) announced it would acquire AI software company Modular in a deal worth $3.9 billion.
- Microsoft (MSFT) continued its decline, bringing its year-to-date loss to 22%. The losses come as the tech giant explores solution to reduce water usage for its data centers.