S&P 500 and Nasdaq 100 Post Record Highs on Tech Strength

The S&P 500 Index ($SPX) (SPY) on Tuesday closed up +0.81%, the Dow Jones Industrial Average ($DOWI) (DIA) closed up +0.73%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +1.31%.  June E-mini S&P futures (ESM26) rose +0.82%, and June E-mini Nasdaq futures (NQM26) rose +1.35%.

Stock indexes settled higher on Tuesday, with the S&P 500 and Nasdaq 100 posting new all-time highs.  The strength in technology stocks and weakness in crude oil prices supported gains in the broader market on Tuesday.  Intel surged more than +12% to lead chipmakers higher after Apple said it has held exploratory discussions with Intel, as well as Samsung Electronics, to produce the main processors for its devices in the US.  Also, WTI crude fell more than -3% on Tuesday as the ceasefire in the Middle East appears to be holding, easing geopolitical risks.

Stocks maintained their gains on Tuesday’s mixed US economic reports. Mar new home sales and Mar JOLTS job openings were better than expected, but the Apr ISM services index was weaker than expected.

The US Mar trade deficit widened to -$60.3 billion from -$57.8 billion in Feb, narrower than expectations of -$61.0 billion.

The US Apr ISM services index fell -0.4 to 53.6, slightly weaker than expectations of 53.7.  Apr ISM prices paid were unchanged at 70.7, weaker than expectations of an increase to 73.5. 

US Mar new home sales rose +7.4% m/m to 682,000, stronger than expectations of 652,000.

The US Mar JOLTS job openings fell -56,000 to 6.866 million, a smaller decline than expectations of 6.850 million.

Relative calm returned to the Persian Gulf on Tuesday after US and Iranian forces exchanged fire in the Strait of Hormuz on Monday and Iran launched missiles and drones toward the United Arab Emirates (UAE).  Iranian Foreign Minister Abbas Araghchi said talks with the US are “making progress” and said events in Hormuz make clear “there’s no military solution to a potential crisis.”  Mr.  Araghchi is traveling to China on Tuesday for talks on regional and international developments.  The US is pressuring China to help convince Iran to reopen the Strait of Hormuz, as China buys almost all of Iran’s oil exports. 

President Trump said the US will begin guiding some neutral ships trapped in the Persian Gulf out through the Strait of Hormuz.  US Central Command said it would provide military support, including guided-missile destroyers, aircraft, and drones, to ships transiting the strait. 

WTI crude oil prices (CLM26) fell more than -3% on Tuesday as calm returned to the Persian Gulf following Monday, when the US and Iran exchanged fire in the Strait of Hormuz.  The US Central Command said the US military has opened a passage through the strait, and US helicopters have destroyed small boats going after commercial vessels.  The strait remains essentially closed, as about a fifth of the world’s oil and liquefied natural gas transits through the strait.  Goldman Sachs estimates that the current disruption has drawn down nearly 500 million bbl from global crude stockpiles, with the drawdown potentially reaching 1 billion bbl by June.

The markets are discounting a 6% chance of a -25 bp FOMC rate cut at the next FOMC meeting on June 16-17.

Earnings results thus far this reporting season have been supportive of stocks.  As of Tuesday, 83% of the 354 S&P 500 companies that reported Q1 earnings have beaten estimates.  Q1 S&P 500 earnings are projected to climb +12% y/y, according to Bloomberg Intelligence.  Stripping out the technology sector, Q1 earnings are projected to increase around +3%, the weakest in two years.

Overseas stock markets settled higher on Tuesday.  The Euro Stoxx 50 closed up +1.84%.  China's Shanghai Composite did not trade, with markets in China closed for the Labor Day holiday.  Japan's Nikkei Stock Average did not trade, with markets in Japan closed for the Children’s Day holiday.

Interest Rates

June 10-year T-notes (ZNM6) on Tuesday closed up by +5.5 ticks.  The 10-year T-note yield fell -2.4 bp to 4.414%.  Jun T-notes moved higher on Tuesday, finding support today from falling crude prices as WTI crude oil slid more than -3%, easing inflation expectations.  T-notes also garnered support from Tuesday’s weaker-than-expected April ISM services report.  The strength in stocks on Tuesday dampened safe-haven demand for government debt securities and limited gains in T-notes.

European government bond yields were mixed on Tuesday.  The 10-year German Bund yield fell -2.4 bp to 3.063%.  The 10-year UK gilt yield rose to a 6-week high of 5.102% and finished up +9.8 bp to 5.061%. 

Swaps are discounting a 92% chance of a +25 bp ECB rate hike at its next policy meeting on June 11.

US Stock Movers

Intel (INTC) closed up more than +12% to lead gainers in the Nasdaq 100 and chip makers and AI-infrastructure stocks higher after Apple said it has held exploratory discussions about using the company, as well as Samsung Electronics, to produce the main processors for its devices in the US.  Also, Micron Technology (MU), SanDisk (SNDK), and Qualcomm (QCOM) closed up more than +10%.  In addition, Lam Research (LRCX) closed up more than +6%, and Applied Materials (AMAT) and Western Digital (WDC) closed up more than +4%.  Finally, Advanced Micro Devices (AMD), Seagate Technology Holdings Plc (STX), ASML Holding NV (ASML), Marvell Technology (MRVL), and Microchip Technology (MCHP) closed up more than +3%.

Airline stocks rebounded on Tuesday after WTI crude oil fell more than -3%, which lowers fuel costs and boosts the profitability prospects for the companies.  American Airlines Group (AAL) and Alaska Air Group (ALK) closed up more than +4%, and United Airlines Holdings (UAL),

Delta Air Lines (DAL) and Southwest Airlines (LUV) closed up more than +3%.

Waters Corp (WAT) closed up more than +13% to lead gainers in the S&P 500 after reporting Q1 sales of $1.275 billion, better than the consensus of $1.20 billion and raising its full-year sales estimate at constant exchange rates to +6.5% to +8.0% from a previous estimate of +5.5% to +7.0%.

Rockwell Automation (ROK) closed up more than +8% after reporting Q2 adjusted EPS of $3.30, well above the consensus of $2.88, and raising its full-year adjusted EPS forecast to $12.50-$13.10 from a previous forecast of $11.40-$12.20, better than the consensus of $12.10. 

Dupont de Nemours (DD) closed up more than +8% after raising its full-year net sales forecast to $7.16 billion to $7.22 billion from a previous forecast of $7.08 billion to $7.14 billion, above the consensus of $7.10 billion.

Pinterest (PINS) closed up more than +8% after reporting Q1 revenue of $1.01 billion, stronger than the consensus of $965.7 million. 

Revvity Inc. (RVTY) closed up more than +6% after reporting Q1 revenue of $711 million, above the consensus of $704.1 million.

Archer-Daniels-Midland (ADM) closed up more than +3% after reporting Q1 adjusted EPS of 71 cents, above the consensus of 65 cents, and forecast full-year adjusted EPS of $4.15 to $4.70, the midpoint above the consensus of $4.23.

Inspire Medical Systems (INSP) closed down more than -12% after cutting its full-year revenue outlook to $825 million to $875 million from a previous estimate of $950 million to $1.0 billion.

Fiserv (FISV) closed down more than -8% after reporting Q1 adjusted revenue of $4.68 billion, weaker than the consensus of $4.73 billion. 

Westlake Corp (WLK) closed down more than -8% after reporting Q1 net sales of $2.65 billion, below the consensus of $2.80 billion.

PayPal Holdings (PYPL) closed down more than -7% to lead losers in the S&P 500 and Nasdaq 100 after CEO Lores said it will still take a “few months” to fully define a future plan for the company.

Aptiv Plc (APTV) closed down more than -7% after cutting its full-year net sales forecast to $12.80 billion to $13.20 billion from a previous forecast of $21.12 billion to $21.82 billion.

Leidos Holdings (LDOS) closed down more than -7% after saying in a conference call that Q2 will likely be the low point this year for revenue growth and margin. 

Duolingo (DUOL) closed down more than -6% after reporting Q1 paid subscribers of 12.50 million, below the consensus of 12.66 million, and forecasting full-year bookings of $1.28 billion, weaker than the consensus of $1.29 billion.

Earnings Reports(5/6/2026)

Albemarle Corp (ALB), Amcor PLC (AMCR), APA Corp (APA), Apollo Global Management Inc (APO), AppLovin Corp (APP), Atmos Energy Corp (ATO), Axon Enterprise Inc (AXON), Bio-Techne Corp (TECH), CDW Corp/DE (CDW), Cencora Inc (COR), CF Industries Holdings Inc (CF), Coherent Corp (COHR), CVS Health Corp (CVS), DoorDash Inc (DASH), Eversource Energy (ES), Exelon Corp (EXC), Fortinet Inc (FTNT), Global Payments Inc (GPN), Host Hotels & Resorts Inc (HST), Insulet Corp (PODD), Johnson Controls International (JCI), Kraft Heinz Co/The (KHC), Marriott International Inc/MD (MAR), MetLife Inc (MET), NiSource Inc (NI), NRG Energy Inc (NRG), PTC Inc (PTC), Realty Income Corp (O), Texas Pacific Land Corp (TPL), TKO Group Holdings Inc (TKO), Trimble Inc (TRMB), Uber Technologies Inc (UBER), Walt Disney Co/The (DIS), Warner Bros Discovery Inc (WBD).