The Nasdaq Composite slipped 0.4% on Wednesday as investors sold AI-focused names again, even with oil prices tumbling and the Dow Jones Industrial Average moving higher. The S&P 500 also fell, though by a smaller 0.1%.
That left the market split in a way traders have been watching closely all week: the Dow Jones Industrial Average gained 0.3%, while the Nasdaq today failed to join any broader rebound after Tuesday's steep technology losses. The pressure returned to the same corner of the market that had already been hit hard, as enthusiasm around AI gave way to worries about lofty valuations, heavy spending and the next round of interest-rate moves.
Micron is at the center of that test. Its earnings are due after the bell on Wednesday, and its shares have rallied more than 250% this year, making the report a live read on whether investors are still willing to pay up for the chip companies tied to AI spending. Micron stock extended losses from the prior session on Wednesday, a sign that the market was not waiting for the numbers before trimming exposure.
The commodity backdrop added another layer of unease, even if it helped the broader market in one respect. Oil prices fell to their lowest levels since early March, with Brent crude futures tumbling 4% to $73 a barrel and West Texas Intermediate crude futures dropping to near $70 a barrel. Oil tankers began navigating the Strait of Hormuz as Iran and Oman discussed a system to charge fees for ships transiting the waterway, but the stronger signal for stocks was that the drop in oil did not rescue tech.
That is the part traders are likely to keep focused on next: whether Micron's numbers calm the selling in AI-linked stocks or give it fresh momentum. If the chipmaker's report disappoints, Wednesday's narrow pullback in the Nasdaq could look less like a pause and more like the start of another leg lower.
