US close: Surging chip stocks push S&P 500, Nasdaq to new highs

(Sharecast News) - US equity indices finished mostly higher on Tuesday on the back of strong gains in the tech sector, propelling the S&P 500 and Nasdaq to yet more all-time highs, while the Dow pulled back from its recent peak.

The Dow, which hit a new record closing high of 50,579.70 on Friday, pulled back 0.2%. However, the S&P 500 rose 0.6% to 7,519.12 and the Nasdaq jumped 1.2% to 26,656.18 - with both surpassing previous records set two weeks ago.

US and UK stock markets both reopened after national holidays on Monday, when Asian and European stock markets posted solid gains and oil prices sank amid hopes of a peace deal between Washington and Iran.

However, oil markets were volatile on Tuesday after the US launched new strikes, threatening the fragile ceasefire that began on 8 April. The US hit missile launch sites and mine-laying boats in southern Iran overnight, with Central Command saying it was an act of self-defence.

WTI crude was down 3.1% at $93.63 a barrel, its lowest in nearly five weeks, though Brent crude rose to $96.67 from $93.42. 10-year US bond yields fell 7.3 basis points to 4.490%, marking their first dip below the 4.5% level in nearly two weeks.

Donald Trump, however, said talks with Iran were "proceeding nicely", though he warned the US could resume offensive operations if discussions broke down.

"Falling yields and retreating oil prices on hopes of a US-Iran ceasefire extension and possible agreement helped US stock indices kick off the week on a strong footing as traders returned from a long weekend," said Axel Rudolph, senior technical analyst at IG.

Chip stocks rally, economic data mixed

Tech stocks performed well, led by a surging chip sector, with Micron Technology soaring nearly 20% after UBS lifted its target price for the stock, suggesting more than 100% upside from current prices. Shares finished 19.3% higher at $895.88, pushing its market cap to above the $1trn mark for the first time.

Others in the sector, including Qualcomm, Broadcom, AMD and Intel also put in solid gains, though sector giant Nvidia slipped slightly.

Pharma giant Eli Lilly and Co finished flat after announcing three acquisitions to beef up its infectious diseases portfolio, spending a combined $3.83bn to buy Curevo, LimmaTech Biologics and Vaccine Company.

Meanwhile, shares in US daily deals platform Groupon jumped 12% as investors reacted to plans to cut up to 400 roles worldwide and an upgrade to full-year forecasts.

On the macro front, the Chicago Federal Reserve's national activity index strengthened in April, rising to +0.14 from a revised -0.15 in March and marking its highest reading in more than a year.

US home‑price growth slowed in March, according to the latest S&P/Case‑Shiller data, with the national index rising 0.7% year‑on‑year, down from 0.8% in February. S&P said more than half of the 20 major US housing markets recorded annual declines, pointing to a "broadening and deepening housing slowdown".

Meanwhile, US consumer confidence slipped slightly in May, according to the the Conference Board, with the headline index edging down to 93.1 from an upwardly revised 93.8 in April. The Conference Board said the present situation index, which tracks consumers' assessment of current business and labour‑market conditions, fell more sharply to 121.2, down 3.2 points on the month. By contrast, the expectations index, which reflects the short‑term outlook for income, business and employment, ticked up to 74.4.

Dow Jones - Risers

Intel Corp. (INTC) $123.52 3.51%

Caterpillar Inc. (CAT) $908.55 3.26%

3M Co. (MMM) $154.03 1.04%

Nike Inc. (NKE) $44.94 0.60%

Verizon Communications Inc. (VZ) $48.49 0.29%

Walt Disney Co. (DIS) $103.28 0.27%

JP Morgan Chase & Co. (JPM) $306.74 0.12%

Apple Inc. (AAPL) $308.33 0.03%

Walgreens Boots Alliance, Inc. (WBA) $0.00 0.00%

Dowdupont Inc. (DWDP) $0.00 0.00%

Dow Jones - Fallers

Chevron Corp. (CVX) $184.71 -3.51%

Unitedhealth Group Inc. (UNH) $376.86 -2.99%

Merck & Co. Inc. (MRK) $119.72 -2.20%

Dow Chemical Co. (DOW) $35.28 -2.03%

Amgen Inc. (AMGN) $335.94 -1.94%

Johnson & Johnson (JNJ) $230.18 -1.78%

Microsoft Corp. (MSFT) $416.03 -1.28%

Coca-Cola Co. (KO) $80.46 -1.25%

International Business Machines Corporation (CDI) (IBM) $250.69 -1.24%

McDonald's Corp. (MCD) $279.26 -1.07%

S&P 500 - Risers

Micron Technology Inc. (MU) $895.88 19.55%

QUALCOMM Inc. (QCOM) $248.82 12.49%

Skyworks Solutions Inc. (SWKS) $83.42 11.57%

Qorvo, Inc. (QRVO) $108.23 9.48%

Western Digital Corp. (WDC) $524.65 8.31%

American Airlines Group (AAL) $14.85 8.08%

CenturyLink Inc. (LUMN) $10.17 8.08%

KLA-Tencor Corp. (KLAC) $2,011.39 7.57%

NetApp Inc. (NTAP) $138.95 7.29%

Analog Devices Inc. (ADI) $419.94 7.20%

S&P 500 - Fallers

AutoZone Inc. (AZO) $3,100.11 -8.99%

Coterra Energy Inc. (CTRA) $32.56 -8.62%

Tractor Supply Company (TSCO) $29.80 -5.91%

Take-Two Interactive Software Inc. (TTWO) $220.67 -5.83%

Advance Auto Parts (AAP) $55.13 -4.87%

Devon Energy Corp. (DVN) $45.14 -4.40%

Kroger Co. (KR) $64.55 -4.01%

Philip Morris International Inc. (PM) $181.53 -3.95%

ONEOK Inc. (OKE) $90.44 -3.82%

Lamb Weston Holdings, Inc. (LW) $42.12 -3.75%

Nasdaq 100 - Risers

Micron Technology Inc. (MU) $895.88 19.55%

QUALCOMM Inc. (QCOM) $248.82 12.49%

Skyworks Solutions Inc. (SWKS) $83.42 11.57%

Western Digital Corp. (WDC) $524.65 8.31%

American Airlines Group (AAL) $14.85 8.08%

KLA-Tencor Corp. (KLAC) $2,011.39 7.57%

Analog Devices Inc. (ADI) $419.94 7.20%

Microchip Technology Inc. (MCHP) $98.05 7.11%

NetEase Inc. Ads (NTES) $123.34 6.46%

Lam Research Corp. (LRCX) $322.68 5.99%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

Take-Two Interactive Software Inc. (TTWO) $220.67 -5.83%

Workday, Inc. (WDAY) $124.02 -5.14%

Costco Wholesale Corp. (COST) $1,002.93 -3.66%

Intuit Inc. (INTU) $304.35 -3.42%

O'Reilly Automotive Inc. (ORLY) $89.87 -3.16%

Charter Communications Inc. (CHTR) $144.00 -3.10%

Mercadolibre Inc. (MELI) $1,648.04 -2.92%

Adobe Systems Inc. (ADBE) $240.49 -2.87%

Biomarin Pharmaceutical Inc. (BMRN) $52.88 -2.83%