New York, NY – US stocks showed signs of volatility on Thursday following chipmaker Micron’s outlook, which dampened hopes for a tech rally. Investors were analyzing fresh economic data, with a key inflation reading that will impact Federal Reserve policy in focus.

The S&P 500 was relatively unchanged, paring earlier losses to remain near record highs, while the Dow Jones Industrial Average slipped slightly. The Nasdaq Composite, which is heavily weighted towards technology stocks, also saw little movement.

The market was reacting to Micron’s sales forecast for the current quarter, meeting expectations but failing to impress investors seeking strong performance, particularly from AI-related companies. The disappointment led to a drop in Micron’s shares by over 4% in early trading, with Nvidia also experiencing a decline.

While bullish sentiment surrounding AI has boosted the S&P 500 by 15% this year, concerns are emerging about the sustainability of the rally if tech companies fail to exceed already high expectations. The outcome of the debate between President Joe Biden and former President Donald Trump, focusing on inflation, added to market uncertainties.

Additionally, Levi Strauss shares plummeted over 15% after a revenue miss in the second quarter, reflecting challenges in the retail sector. Investors were eagerly awaiting Nike’s quarterly results for further insights into consumer behavior.

Economic indicators, including GDP growth and jobless claims data, provided mixed signals about the health of the economy. Real GDP in the first quarter of 2024 increased slightly to 1.4%, according to the latest estimates. While initial jobless claims decreased, ongoing claims rose to the highest level since late 2021, suggesting lingering challenges in the labor market.

Overall, market participants are closely monitoring developments in various sectors while navigating through uncertainties, both domestically and globally, that could impact the trajectory of stocks in the coming days.