The S&P 500 set a brand new file on Tuesday, reaching 7,539.8 throughout the session, placing it on tempo for a nine-week successful streak for the primary time since 2023. After all, tech corporations did many of the heavy lifting, as Wall Avenue shortly returned to its chip fetish after the lengthy weekend.
The Nasdaq Composite Index additionally set a brand new intraday file, whereas the Dow Jones Industrial Common did the alternative. The S&P 500 rose 0.5%, the Nasdaq rose 0.9% and the Dow fell 216 factors, or 0.4%. U.S. markets had been closed Monday for Memorial Day.
The Iran story stayed on merchants’ screens. President Donald Trump stated Monday that negotiations with Iran to finish the conflict are “progressing nicely.” Donald additionally stated america might assault if talks break down. Early Tuesday morning, america introduced it had carried out a “self-defense” strike in southern Iran.
Tim Hawkins, a spokesman for U.S. Central Command, stated the targets included missile launch websites and Iranian boats that had tried to plant mines. Tim stated america exercised “restraint throughout the length of the ceasefire” between the 2 nations.
The S&P 500 rose 0.9% final week, snapping its longest weekly successful streak since late 2023. The Dow Jones Industrial Common rose 2.1%, its third weekly acquire in 4 weeks. The Nasdaq rose 0.5%, successful seven of the previous eight weeks.
Tech shares raise S&P 500 as reminiscence chip names dominate market
Micron Expertise (MU) soared 20%, pushing its market cap above $1 trillion as analysts turned more and more bullish on the inventory.
UBS stated Micron might recognize greater than 100% sooner or later as a result of its long-term contract. Shares acquired off to a troublesome begin final week as reminiscence chip shares offered off, however they nonetheless ended the week with massive beneficial properties.
“We consider that as the small print of the structural modifications that AI has dropped at the general reminiscence complicated change into clearer, the market will start to cost the inventory at extra ‘regular’ multiples, and MU will proceed to revalue increased sooner or later,” UBS stated.
Different reminiscence shares traded equally. Seagate Expertise (STX) rose 5% and Western Digital (WDC) rose 8%. The Spherical Hill Reminiscence ETF (DRAM) rose 15% to a brand new file.
Nvidia (NVDA) additionally joined the market after Rothschild & Firm Redburn raised its worth goal from $280 to $300. This goal represents an nearly 40% upside from Friday’s closing worth. Analyst Tim Schultz Melander stated in a observe Tuesday that Nvidia’s quarter was “almost good.”
“Information heart income accelerated from $250 billion ARR and 75% year-over-year development (This autumn) to $300 billion ARR and 92% year-over-year development (Q1),” Timm wrote. “Gross sales to hyperscale clients grew a formidable 115% yr over yr as capital spending shifts from land and buildings to silicon in 2025.”
Tim stated rivals must develop quicker than Nvidia over the long run in the event that they wish to show they’ve market share. He additionally stated that Nvidia has earned investor confidence via its earnings efficiency. The corporate’s anticipated worth/earnings ratio is over 21 instances.
In the meantime, Intel (which missed out on the primary main beneficial properties of the AI rally) has seen its inventory enhance greater than sixfold and is buying and selling close to all-time highs this previous week. Because the market reopens right now, U.S. chipmakers are poised to make a serious comeback after receiving vital funding from the U.S. authorities final summer season. Qualcomm, Superior Micro Gadgets, and Marvell Applied sciences all hit file highs.
Following the U.S. airstrikes, West Texas Intermediate crude oil futures for July fell again from the day’s low, buying and selling 3% decrease at $93 a barrel. Brent crude oil rose 3% to commerce at $99 a barrel.
Low oil costs pushed up inventory costs final week. US crude oil costs had their worst week since April seventeenth.
Oil costs stay nicely above ranges seen initially of the yr, and worth pressures haven’t disappeared. This dampened bets that the US Federal Reserve would ease coverage. Primarily based on the CME FedWatch instrument, merchants now consider the likelihood of a July charge hike is about 13%, up from 0.9% a month in the past.
