Updates after market open

By Twesha Dikshit and Joel Jose

June 24 (Reuters) - The S&P 500 and the Nasdaq whipsawed in choppy trading on Wednesday after two straight sessions of declines, with technology shares mixed as investors awaited Micron's earnings.

Concerns around debt-backed spending by hyperscalers and a potentially more hawkish Federal Reserve fueled the downturn this week, wiping off more than $1 trillion in market value from the Nasdaq 100.

Memory chipmakers Micron Technology MU.O and Sandisk SNDK.O, among the best performers on the S&P 500 this year, were down marginally after a sharp plunge in the prior session.

Increased volatility in equities has intensified focus on Micron's results due after the bell, as it is a key beneficiary of surging demand from companies investing billions in AI infrastructure. The stock has surged more than 268% in 2026, despite a 13% drop on Tuesday.

"Micron’s earnings this time are central to market sentiment. Investors have key questions, particularly around the cost of bringing AI to life - how expensive it has become and what kind of return on investment companies are seeing," said Brent Schutte, chief investment officer at Northwestern Mutual Wealth Management Company.

At 09:59 a.m. the Dow Jones Industrial Average .DJI rose 62.08 points, or 0.12%, to 51,728.92, the S&P 500 .SPX gained 23.79 points, or 0.32%, to 7,389.25 and the Nasdaq Composite .IXIC gained 72.18 points, or 0.28%, to 25,659.22.
Seven of the 11 major S&P 500 sectors moved higher, with the consumer discretionary sector .SPLRCD rising the most at 1%.

A decline in financial shares kept the Dow's gains in check, with Goldman Sachs GS.N declining 1.5%.

Investors continued to monitor Middle East developments after the U.S. and Iran offered conflicting accounts on a range of key issues including financial incentives for Iran, control over the Strait of Hormuz and Israel's war in Lebanon.

The S&P 500 energy sector .SPNY fell 2.3%, with brent crude prices falling to their lowest in nearly four months as more tankers were set to move out of the Strait of Hormuz. U.S. President Donald Trump said Iran had told Washington that no tolls were being sought.

Optimism surrounding an end to the war and strong earnings growth expectations have put the S&P 500 .SPX on track for its strongest quarterly gain in six years, despite expectations of higher interest rates.

Traders are adding to bets of a second rate hike from the Fed by December-end, according to CME Group's FedWatch tool, from prior expectations of a single 25-basis-point rise, after new chair Kevin Warsh emphasized the need to curb inflation.

The closely watched Personal Consumption Expenditures Price Index, the Fed's preferred inflation gauge, could offer fresh insight on the monetary policy path on Thursday. Economists expect a rise to 4.1%, more than twice the central bank's target.

Meanwhile, J.P. Morgan increased its year-end S&P 500 price target to 7,800 points, citing strong earnings growth momentum and a resilient economy.

Among other movers, Cerebras Systems CBRS.O tumbled 14.5% after the chip designer forecast full-year profit margins would drop below first-quarter figures in its debut report after going public.

FedEx FDX.N slid 1.3% after reporting that margins in its core delivery segment shrank in the latest quarter from a year earlier.

Hertz HTZ.O tumbled 25.5% after the car rental firm said it expects second-quarter adjusted core earnings near the lower end of its forecast range and announced a proposed offering of $100 million of common stock.
Advancing issues outnumbered decliners by a 1.58-to-1 ratio on the NYSE and by a 1.24-to-1 ratio on the Nasdaq.
The S&P 500 posted 10 new 52-week highs and one new low while the Nasdaq Composite recorded 77 new highs and 40 new lows.