Chip companies pressured Wall Street − Alphabet Dow Jones

Wall Street’s stock indexes moved at a different pace on Wednesday, as chip companies’ shares continued to decline before the memory chip company Micron Technologyn earnings announcement.

Investors awaited Micron’s earnings report after the close on Wall Street, as it is expected to give an indication of whether demand for artificial intelligence infrastructure will be enough to support this year’s strong technology-driven share price rally.

The broad S&P 500, which tracks large companies, fell 0.1 percent. The technology-focused Nasdaq weakened by 0.4 percent. The flagship Dow Jones index rose 0.4 percent.

Micron’s stock fell 0.3 percent on Wednesday before the earnings release. Other chip companies were also under pressure.

“The decline in technology stocks is a healthy correction, as many technology stocks have overextended themselves,” said RGA Investmentsin investment manager Rick Gardner CNBC:lle.

According to Gardner, the decline in technology stocks indicates that investors are reassessing the industry’s high earnings expectations ahead of the earnings season that starts in July. According to him, it’s about calibrating expectations.

Oil prices fell on Wednesday. The price of the Brent reference quality fell by about three percent to about $74 per barrel. The price of US WTI crude oil fell by about XX percent to around $70 per barrel.

The drop in oil prices also weighed on energy companies. Exxon Mobil, Chevron, ConocoPhillips and SLB all fell by more than two percent. The Energy Select Sector SPDR ETF, which tracks the energy sector, weakened by 1.7 percent.

S&P Global said Google’s parent company Alphabetin replacement Verizon’s in the Dow Jones index.

Network equipment manufacturer on the New York Stock Exchange Nokian depository receipt, or ADR, rose 0.8 percent to $13.81.