4:15pm: Good day for Dow
Markets finished Tuesday on a mixed note as investors rotated out of high-flying technology names and into economically sensitive sectors, while keeping a close eye on developments in the Middle East and the Federal Reserve's policy meeting.
The Dow Jones Industrial Average rose 329 points, or 0.6%, to close at a record 52,000 after touching a fresh intraday high earlier in the session. The blue-chip index was helped by a sharp drop in oil prices after reports of a US-Iran peace agreement pushed Brent crude below $80 a barrel for the first time since March.
However, doubts about the durability of the deal tempered broader market enthusiasm, with the S&P 500 slipping 0.1% to 7,549 and the Nasdaq falling 1.2% to 26,376.
Technology shares led the declines, as investors took profits in the AI infrastructure trade. Advanced Micro Devices, Broadcom and Micron Technology each lost more than 3%, weighing on the Nasdaq. Meanwhile, SpaceX (NASDAQ:SPCX) climbed nearly 5% to finish just below $202 per share, surpassing Amazon to become the fifth-largest company by market value.
Attention now turns to the Federal Reserve, where policymakers concluded the first day of a closely watched two-day meeting under new Chair Kevin Warsh. While markets broadly expect interest rates to remain unchanged at 3.5% to 3.75%, investors are looking for clues on the central bank's future policy path and any potential changes to its balance sheet strategy.
3:40pm: Proactive news headlines
- Helport AI Limited launched HyprX for Hardware, a QR-code-powered AI agent that provides product setup assistance, troubleshooting, customer engagement, and upselling capabilities through a single consumer interaction.
- Axe Compute Inc secured $25.9 million in long-term contracts to deploy Blackwell and Grace Blackwell computing infrastructure for enterprise AI customers, with $12.9 million already received as advance payments.
- Arizona Gold & Silver Inc (TSX-V:AZS, OTCQB:AZASF) received approval from the U.S. Bureau of Land Management to expand exploration activities at its Philadelphia gold-silver project in Arizona, including the construction of 16 new drill pads and related infrastructure.
- Rhythm Pharmaceuticals Inc. reported long-term data showing sustained weight loss benefits from setmelanotide therapy and continued improvements from bivamelagon treatment in patients with acquired hypothalamic obesity.
- Syntec Optics Holdings Inc. received nearly $2.4 million in new purchase orders for optics products supporting low Earth orbit satellite launches, bringing recent orders for the product line to approximately $4.3 million.
- Aftermath Silver Ltd (TSX-V:AAG, OTCQX:AAGFF, FRA:FLM1) engaged Global Frontier Advisors and formed a new advisory board featuring former senior military and diplomatic leaders to support advancement of its Berenguela silver-copper-manganese project in Peru.
- VivoPower PLC (NASDAQ:VIVO) was recertified as a Certified B Corporation through 2028 after increasing its verified B Impact Score and demonstrating strong performance across environmental, workforce, and governance metrics.
- Blockmate Ventures Inc (TSX-V:MATE, OTCQB:MATEF, FRA:8MH) provided an update on plans to develop a Wyoming property into an AI-focused data center, saying it remains in discussions with multiple potential partners regarding the opportunity.
2:30pm: Market movers
- Arizona Gold & Silver Inc (TSX-V:AZS, OTCQB:AZASF, FRA:A9J0) shares gained after it announced it has received approval from the U.S. Bureau of Land Management to expand exploration at its Philadelphia gold-silver project in Arizona.
- Mobileye announced plans to launch its own fully driverless robotaxi service in a major U.S. city by 2027, expanding beyond supplying autonomous driving systems and moving toward a vertically integrated mobility business.
- Vince Holding reported stronger-than-expected first-quarter results and raised its full-year outlook, sending its shares up about 21% after posting a smaller-than-expected adjusted loss.
- Dave & Buster's Entertainment (NASDAQ:PLAY) posted weaker-than-expected first-quarter earnings and revenue as softer consumer demand and marketing challenges weighed on comparable store sales.
- SpaceX (NASDAQ:SPCX) agreed to acquire AI coding assistant developer Anysphere in a stock-for-stock deal valuing the company at $60 billion, with the transaction expected to close in the third quarter of 2026.
- VivoPower PLC (NASDAQ:VIVO, FRA:51J) was recertified as a Certified B Corporation through 2028 after improving its B Impact Score to 86.6, reflecting stronger performance across its environmental, workforce and governance initiatives.
12:10pm: Wells Fargo turns bullish on S&P 500
Wells Fargo has raised its year-end 2026 target for the S&P 500 to 7,950, citing a combination of improving market sentiment, easing macroeconomic risks, and supportive liquidity conditions.
The bank said investor positioning has reset following the recent Nasdaq selloff, while trend-following commodity trading advisors are increasingly positioned to add equity exposure.
Analysts also pointed to reduced geopolitical uncertainty after the U.S.-Iran peace agreement and continued liquidity support as key tailwinds for stocks. Reflecting a more optimistic outlook, Wells Fargo increased its 2026 earnings-per-share forecast for S&P 500 companies to $340.
11:00am: SpaceX (NASDAQ:SPCX) makes first big public deal
SpaceX (NASDAQ:SPCX) (SpaceX (NASDAQ:SPCX)) has reached an agreement to acquire Anysphere, the developer of the artificial intelligence coding assistant Cursor, in a stock-for-stock deal that values the company at $60 billion.
The transaction will see SpaceX (NASDAQ:SPCX) subsidiary X67 Inc merge with Anysphere, after which Cursor will operate as a wholly owned subsidiary of SpaceX (NASDAQ:SPCX). The company expects the acquisition to close in the third quarter of 2026, pending regulatory approvals and other customary closing conditions.
Shares of SpaceX opened about 5% higher on Tuesday on the news.
10:00am: Peace hopes lift sentiment
US stocks opened higher on Tuesday, with the major indexes hovering near record territory as investors continued to welcome signs of easing geopolitical tensions following a preliminary peace agreement between the United States and Iran.
The Dow Jones gained 276 points, or 0.5%, to 51,947, while the S&P 500 climbed 1.7% to 7,554. The Nasdaq added 0.3% to 26,750, extending a rally that has pushed equities to fresh highs in recent sessions.
Investors are also digesting a flurry of corporate and economic developments. SpaceX (NASDAQ:SPCX) grabbed headlines after announcing plans to acquire the company behind the Cursor coding app in a deal valuing the artificial intelligence software maker at $60 billion. Meanwhile, Goldman Sachs lowered its oil-price forecast as hopes for a lasting reduction in Middle East tensions eased concerns about energy supply disruptions. Not all stocks were joining the rally, however, with Dave & Buster’s shares tumbling after the entertainment chain delivered disappointing results.
Looking ahead, traders will be closely watching a fresh batch of economic data, including weekly jobless claims and the Philadelphia Fed's business outlook survey, both due before the opening bell, followed by May's leading economic indicators.
Analysts say lower energy prices could broaden the market's advance beyond the technology sector. As Swissquote analyst Ipek Ozkardeskaya noted, sectors that lagged during the Iran conflict may now attract fresh investment as valuations appear more attractive. Still, she cautioned that central banks are only beginning to respond to recent inflation pressures, meaning higher borrowing costs could temper some of the optimism sparked by falling oil prices.
Ding, dong and morning, folks
Wall Street looks set to catch its breath on Tuesday after a record-setting run, as the giddy reaction to peace with Iran gives way to harder questions about oil and the Federal Reserve.
Dow futures ticked up 0.1% after Monday's all-time closing high, with the S&P 500 flat and the Nasdaq 100 up 0.2%.
The mood music is still upbeat, just less euphoric than Monday's celebration of the US-Iran accord.
The cold water? Reopening the Strait of Hormuz, promised for Friday, looks anything but simple, and traders are warned it could take months for oil to flow freely again.
The deal's small print has yet to land, though Washington says commercial ships can use the waterway toll-free.
That leaves a messy backdrop for the Fed, which starts its two-day meeting today with inflation running hot, May's reading hit 4.2%, the highest since 2023, as the war with Iran stoked energy prices.
Japan's central bank has already blinked, lifting rates to a 31-year high.
No one expects a move from the Fed on Wednesday, the first call under Trump's pick Kevin Warsh, but eyes are on the "dot plot" for hints that hikes are coming.
And SpaceX (NASDAQ:SPCX)? Up another 10% before the bell, on course to leapfrog Amazon into fifth place among the world's biggest companies.