Apple Price Hikes Pressure Nasdaq

Summary

Apple’s planned iPad and MacBook price increases weighed on tech sentiment after rising memory and storage costs highlighted pressure from the AI data centre boom. The Nasdaq closed lower on Thursday, while the S&P 500 was almost flat and the Dow edged higher. The FTSE 100 saw modest gains, helped by 3i, Halfords, easyJet and takeover news. The dollar stayed near one-year highs, gold weakened near $4,000, and oil fell as more tankers exited Hormuz.

Equities

The FTSE 100 closed 0.7% higher on Thursday, reaching its highest level in more than a week as financial and retail stocks led gains. The FTSE 250 also ended 0.3% higher, supported by a series of positive company updates and takeover activity.

Shares in 3i Group climbed 11.5% after its discount retailer Action reported a 3.3% increase in like-for-like sales during the 25 weeks to 21 June. The update reinforced confidence in the group's continued growth and helped financial stocks lead the wider market higher.

Halfords surged 20.6% after forecasting full-year 2027 profit towards the top end of analysts' expectations. Moonpig also moved higher, rising 2.5% after reporting stronger annual pre-tax profit as customers continued to spend more on higher-priced gifts.

EasyJet gained 6.4% after rejecting a fourth £4.93 billion takeover proposal from Castlelake. However, the airline said it would allow the US investment firm limited access to commercial information in the hope of encouraging a higher offer.

Advanced Medical Solutions jumped 16% after receiving a £715 million takeover proposal from US adhesives maker H.B. Fuller. ITV added 2.4% following reports that Comcast-owned Sky had agreed terms to acquire its broadcast and streaming business.

In the US, the Dow Jones Industrial Average closed 0.14% higher on Thursday, while the S&P 500 edged 0.01% lower. The Nasdaq fell 0.46% as losses across several of the largest technology companies offset strong gains elsewhere in the semiconductor sector.

Apple dropped 6.1% after announcing price increases for iPads and MacBooks to offset higher memory and storage chip costs. Nvidia, Microsoft and Alphabet also closed lower, falling between 0.5% and 3.5%.

Micron rallied 15.7% after reporting quarterly earnings and issuing guidance that comfortably exceeded Wall Street expectations, adding to optimism over demand for AI memory chips. The results also lifted other storage and semiconductor companies.

Sandisk soared 22%, while Qualcomm, Western Digital and Seagate Technology all posted strong gains following Micron's earnings. The Philadelphia Semiconductor Index rose 3.2% and remained on course for its strongest quarter on record.

Bio-Techne climbed 11.8% after Germany's Merck KGaA agreed to acquire the biotechnology company in a cash deal worth around $11.3 billion.

Forex & Commodities

The US dollar remained firmly in control early on Friday, continuing its recent advance as investors priced in at least one Federal Reserve interest rate increase before the end of the year. The dollar traded close to one-year highs against the euro, with the single currency around $1.135, while the Japanese yen remained near a 40-year low against the US currency. Sterling was also under pressure, trading around $1.361 against the dollar.

The latest shift in expectations followed fresh US inflation data released on Thursday, which showed annual inflation climbed above 4.0% in May for the first time in three years. Markets are now pricing in three Federal Reserve rate increases this year, with around a 64% probability of a September move, reflecting expectations that policymakers will continue to focus on persistent inflation.

The stronger dollar has continued to attract global capital into US assets. Investors have built net long dollar positions worth around $30 billion, while Bank of America estimates that approximately $341 billion has flowed into US equities so far this year, supported by continued investment in artificial intelligence and technology.

Spot gold fell 0.5% early on Friday to $4,008 per ounce, remaining close to the key $4,000 level. Bullion is on course for a fourth consecutive weekly decline after briefly falling below $4,000 on Wednesday for the first time since November 2025. Higher US interest rate expectations and the stronger dollar continued to reduce demand for the non-yielding precious metal.

Oil prices fell sharply early on Friday as concerns over supply disruption continued to ease. Brent crude dropped to $73.79 a barrel, while West Texas Intermediate fell to $70.48.