Wall Street is trading higher on Thursday, led by a strong semiconductor rally after Micron Technology (MU) delivered a massive Q3 earnings beat. Meanwhile, Apple (AAPL) and NVIDIA (NVDA) are trading lower, creating a mixed picture that has caught the attention of technical analysts.
What's Driving the Market Today
MU surged roughly 14.5% to $1,200 after reporting revenue of $41.46 billion versus consensus estimates around $35.7 billion, a significant gap driven by strong demand for HBM (High Bandwidth Memory) chips used in AI data centers. The company also raised its capex guidance.
The wave swept the entire sector: AMAT rose 7.5% to $633, and the SOXX semiconductor index climbed 2.8%. European chip stocks followed with 4–6% gains, and Asian markets also rallied on the news.
But not every AI stock joined the party. AAPL dropped 5.2%, giving back recent gains. NVDA declined 1.6%, slipping back toward the $195 level, a technically significant zone.
Key Technical Levels: The S&P 500 Pivot
From an Elliott Wave perspective, the S&P 500's broader trend remains bullish. Analysts point to an impulsive structure unfolding from the March 30, 2026 low:
- Wave 1 ended near 7,147.
- Wave 2 corrected to ~7,046.
- Wave 3 is extending in a nested impulse: sub-wave ((i)) at 7,517, sub-wave ((ii)) established support near 7,336, and sub-wave ((iii)) pushing upward toward targets above 7,620.
The 7,336 level is the critical support axis. As long as SPX holds above it, the bullish count remains intact. SPY is trading around $734, right at this sensitive zone.
BAC Breaks Out, Financials Join the Rally
Bank of America (BAC) continues its uptrend, breaking to all-time highs with a 1.4% gain to $58.52. Analysts see this as confirmation of an impulsive bullish structure after clearing a prior peak. The XLF (financials ETF) is also rising, potentially signaling the start of a broader rotation into value stocks.
Why AAPL and NVDA Are Lagging
Both flagship names are showing unusual weakness on a semiconductor rally day:
- AAPL declined 5.2%, approaching support in the $276–284 zone, a potential last line of defense before a deeper correction. Immediate resistance sits at $299–301.
- NVDA is slipping toward $195, a former support-turned-resistance level. A break below could open the door to $183. Conversely, reclaiming $211–212 would be a first positive signal.
Analysts are debating whether this is a temporary pullback within a continuing uptrend or the start of a more significant profit-taking phase in the year's market leaders.
Macro Picture: Inflation Doesn't Spook, Yet
PCE data released today came in slightly above expectations at ~4.1% annualized, but did not derail the positive momentum, at least not yet. The market is choosing to focus on MU's earnings and the tech rally, but analysts caution that inflation remains a potential threat to expected rate cuts.
The Bottom Line
Technical conversation today revolves around three axes: the S&P 500's Wave 3 completion with a critical support at 7,336, the semiconductor rally led by MU and AMAT, and the surprising weakness in AAPL and NVDA. BAC joins the party with an all-time high breakout, adding a positive note for the financial sector. The key questions: will 7,336 hold, and will AAPL and NVDA stabilize before deeper declines?
