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Micron tumbles 17.2% as investors retreat from AI and chip stocks
Micron lost $160 billion in market value in a broad retreat from AI and semiconductor stocks, and the Nasdaq-100 tumbled 6.4%. Every $1,000 in an S&P 500 fund lost $44, and tech-heavy funds may swing more.
At Thursday’s close: S&P 500 −4.36%, Nasdaq-100 −6.36%, Dow −3.44%
Quick Read
- Micron's slide on Thursday cut its market value sharply and left the stock well below its 52-week high.
- Every sector fund fell, with technology hit hardest and the tech-heavy Nasdaq-100 losing more than the S&P 500.
- A Defiance fund that bets against Micron, MUZ, was among the day's top gainers, though a momentum gauge flagged it as overbought.
- Treasury yields fell as bond prices rose, and the October jobs report on Nov. 6 is the next broad checkpoint.
How far did Micron fall?
Micron Technology (Nasdaq: MU) shares tumbled 17.2% on Thursday. The memory chipmaker closed at $658.09, down from $795.23 the day before.
Why it matters: The drop cost Micron $160 billion in market value, leaving the company worth $740 billion. Investors traded $47 billion of its stock during the session.
By the numbers: The stock now sits 45.8% below its 52-week high of $1,213.56. The longer run still looks different: $1,000 put into Micron a year ago was worth $2,771 at Thursday's close.
Why did chip and tech stocks sell off?
Micron fell as part of a broad retreat from artificial intelligence and semiconductor stocks. The selling hit chipmakers and other AI-linked companies as a group, not Micron alone.
The damage was heaviest in technology. The technology sector fund (XLK) tumbled 8.0%, the worst result among the sector funds.
No corner of the market escaped. Every sector fund ended lower, though defensive groups held up better. Consumer staples (XLP) fell 0.7%, and communication services (XLC) fell 0.5%.
How did index funds and bonds react?
The Nasdaq-100, an index of the largest Nasdaq-listed companies and mostly tech, tumbled 6.4% to 26,629.81. The S&P 500, the index behind many 401(k) funds, dropped 4.4%. The Dow fell 3.4%.
Every $1,000 in a Nasdaq-100 fund lost $64. The same stake lost $44 in an S&P 500 fund and $34 in a Dow fund.
The Nasdaq-100 is down 6.2% for the week so far. That is a smaller loss than Thursday's alone, after gains earlier in the week.
Bonds gained as stocks fell. The 10-year Treasury yield fell 6 basis points to 4.84%. Yields move opposite to bond prices.
Who gained from Micron's fall?
A Defiance ETF built to bet against Micron, trading as MUZ, was among Thursday's top gainers. An ETF is a fund that trades like a single stock. MUZ aims to move opposite to Micron each day, at a multiple of the stock's daily move.
The fund had already climbed on Wednesday. Its trading volume on Thursday ran well above its usual level.
The counterpoint comes from a momentum gauge called the Relative Strength Index. It put Micron deep in what traders call oversold territory, where selling may have run ahead of itself. The same gauge showed MUZ as overbought. A Micron recovery could leave the fund exposed to a pullback.
What could happen next?
What’s next: The broad market's next checkpoints are economic. The October jobs report arrives on Nov. 6 at 8:30 a.m. ET. The October consumer price index, the monthly report on inflation, follows on Nov. 10 at 8:30 a.m. ET.
Those releases could move Treasury yields and expectations for the Fed's next rate decision. For Micron, the open question is whether Thursday's selling extends or eases. The stock's trading in the next sessions may show which.
For readers
What it could mean for you: This story matters most to people who own a technology or semiconductor fund. A sector fund concentrates on one industry, so a chip sell-off can move it far more than a broad fund. On Thursday the technology sector fund lost more than the S&P 500. Funds that hold Micron alongside other chipmakers could keep swinging with sentiment toward AI. The October jobs report on Nov. 6 and the inflation report on Nov. 10 may shift that sentiment through interest rates.
Questions and answers
Why did Micron stock fall on Thursday?
Micron fell as part of a broad retreat from AI and semiconductor stocks. The selling hit technology hardest, though every sector fund ended lower.
What is the MUZ ETF that bets against Micron?
MUZ is a Defiance exchange-traded fund designed to move opposite to Micron each day, at a multiple of the stock's daily move. It was among Thursday's top gainers as Micron fell.
Why did the Nasdaq-100 fall more than the S&P 500?
Technology companies make up much of the Nasdaq-100, and tech was the hardest-hit sector on Thursday. The S&P 500 spreads its weight across more industries, so its loss was smaller.
Is Micron stock oversold?
Micron's Relative Strength Index, a common momentum gauge, fell into what traders call oversold territory on Thursday. That reading may point to a possible rebound, but it does not show that one is coming.
The numbers
| Micron Technology (MU) price | $658.09 |
|---|---|
| Micron Technology (MU) change | −17.25% |
| Micron Technology (MU) market value | $740 billion |
| Micron Technology (MU) 52-week high | $1,213.56 |
| S&P 500 change | −4.36% |
| 10-year Treasury yield | 4.84% |
Thursday’s close
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