New York, USA – Stock markets in the United States experienced a slight wobble on Thursday following news from chipmaker Micron that impacted hopes for a tech rally. Investors were carefully evaluating recent economic data in anticipation of a pivotal inflation report that would influence Federal Reserve policy decisions.

The S&P 500 index remained relatively unchanged after a strong performance the previous day, lingering close to a new all-time high. The Dow Jones Industrial Average traded around the flatline, while the Nasdaq Composite, known for its focus on technology stocks, saw a modest 0.1% increase.

Investor sentiment seemed to have been dampened by Micron’s sales forecast for the current quarter. Although meeting expectations, the forecast failed to meet the high hopes of investors anticipating exceptional performance from companies involved in artificial intelligence.

The surge in enthusiasm around artificial intelligence has significantly boosted the S&P 500 index, delivering a notable 15% gain so far this year. However, concerns are starting to emerge about the sustainability of this rally if tech companies, driving most of the gains, begin to fall short of these heightened expectations.

Memory maker Micron’s shares experienced a decline of over 4% in early trading, while another tech giant, Nvidia, also saw a dip of approximately 1%, reigniting fears of a market sell-off reminiscent of the previous week’s turbulence.

In light of the upcoming PCE inflation report data set to be released on Friday, investors were closely monitoring economic indicators. Initial weekly jobless claims had decreased by 6,000 to 233,000, although ongoing jobless claims rose to their highest level since late 2021, signaling a challenging job market environment.

The Bureau of Economic Development revealed that real gross domestic product had expanded by an annual rate of 1.4% in the first quarter of 2024, slightly higher than the previous estimate. These economic figures would likely play a crucial role in shaping the Fed’s decision on future interest-rate adjustments.

As the evening approached, attention shifted to the highly-anticipated debate between President Joe Biden and former President Donald Trump, with inflation expected to be a prominent topic of discussion. On the corporate front, Levi Strauss faced a significant setback, with shares plummeting over 15% following a disappointing second-quarter revenue miss.

Investors were eagerly awaiting the quarterly results of Nike, hoping for insights into consumer resilience and possible market trends. The dynamics of the market were further underscored by the struggles of Walgreens, as the pharmacy chain’s stocks tumbled by 24% due to lowered earnings guidance and challenging industry trends.