U.S. stocks climbed to fresh highs Tuesday as optimism over possible Iran negotiations lifted market sentiment and Micron Technology surged past a $1 trillion valuation.
By yourNEWS Media Newsroom,
U.S. stocks rose to new records Tuesday as investors returned from the holiday weekend with renewed optimism over possible progress toward ending the war with Iran, while Micron Technology’s sharp rally pushed the chipmaker above $1 trillion in market value.
The S&P 500 gained 0.6% after trading resumed following Monday’s holiday. The Nasdaq composite climbed 1.2% to reach its own record high. The Dow Jones Industrial Average slipped 0.2%.
Markets were lifted in part by President Donald Trump’s statement that negotiations with Iran were “proceeding nicely,” raising hopes that a deal could ease pressure on global oil flows and inflation. Treasury yields moved lower as investors assessed the possibility that improved access to oil could reduce one of the biggest sources of price pressure in the global economy.
Oil prices remained volatile. Brent crude, the international benchmark, rose 3.4% to $96.63 a barrel Tuesday, recovering only part of its 7.1% drop from Monday. U.S. crude fell 2.8% to settle at $93.89 a barrel.
Crude prices have been a major driver of financial markets since the United States and Israel attacked Iran in late February. The war has closed the Strait of Hormuz to most oil tankers, leaving crude trapped in the Persian Gulf and restricting shipments to customers around the world. The disruption has pushed oil prices higher and contributed to inflation pressures globally.
Stocks of companies with large fuel costs rose as investors looked for potential relief. United Airlines gained 5.6%, while cruise operator Carnival rose 3.2%.
The pullback in oil prices helped ease pressure in the bond market. The yield on the 10-year Treasury fell to 4.50% from 4.56% late Friday. Lower yields can support stock prices by reducing borrowing costs and making equities more attractive compared with bonds.
The decline offered investors a reprieve after recent increases in yields across global bond markets. Higher yields have threatened to slow economic activity and weigh on stock prices, mortgages and corporate borrowing.
Mortgage rates have already climbed to their highest level since last summer. Elevated borrowing costs could also affect companies financing artificial intelligence data centers, a sector that has helped support recent U.S. economic growth.
Technology shares remained a major source of strength. Micron Technology surged 20.9% to more than $900 a share, becoming the strongest force lifting the S&P 500. Analysts at UBS, led by Timothy Arcuri, raised their 12-month price target on the stock to $1,625 from $535, citing continued strength in demand for computer memory.
Micron ended the session with a market valuation of $1.01 trillion, joining the group of companies valued above $1 trillion. The stock has tripled so far this year.
The rally in Micron helped offset weakness in AutoZone, which fell 10.8%. The auto parts retailer reported quarterly revenue that came in slightly below analysts’ expectations, though profit topped forecasts. CEO Phil Daniele said the company’s stores in Brazil and Mexico performed below plan.
Most major U.S. companies have reported stronger-than-expected profit and revenue for the start of 2026. Those results have helped drive stocks to records despite uncertainty tied to oil prices, inflation and the war with Iran.
Consumer sentiment remains a concern. A report Tuesday showed consumer confidence edged lower in May, although the reading was not as weak as economists had expected. The report followed data released Friday showing U.S. consumer sentiment had fallen to its lowest level on record.
Global markets were mixed. South Korea’s Kospi rose 2.5% as trading resumed after a Monday holiday. London’s FTSE 100 gained 0.2%, even as BP fell 4.2% after the British petroleum giant ousted its chairman over what it described as serious concerns involving “important governance standards, oversight and conduct.”
Japan’s Nikkei 225 slipped 0.2% after reaching an all-time high the previous day.
Tuesday’s trading showed investors balancing several forces at once: strong corporate earnings, powerful technology momentum, elevated oil prices, weakening consumer confidence and the possibility that negotiations could eventually ease the conflict with Iran. For now, hopes for a diplomatic breakthrough and continued enthusiasm for artificial intelligence-linked stocks were enough to push Wall Street further into record territory.
Original article
Comments