U.S. stocks were mixed in late trading on Tuesday, with both the Dow and the S&P 500 reaching new intraday highs.
Traders were closely monitoring the latest developments in U.S.-Iran relations and the movements of major technology stocks.
The Dow Jones Industrial Average rose 224.87 points, or 0.44%, to 51,303.75.
The Nasdaq Composite fell 34.41 points, or 0.13%, to 27,052.40.
The S&P 500 index gained 4.18 points, or 0.06%, to 7,604.14.
Marvell Technology Inc. (NASDAQ: MRVL)
Marvell Technology surged 15% after NVIDIA CEO Jensen Huang suggested the semiconductor company could become the next trillion-dollar enterprise.
Huang noted, "When you break down a computational problem into many parts and distribute it across a data center, connectivity is essential. That's why Marvell is so important."
The Philadelphia Semiconductor Index climbed 4%.
Hewlett Packard Enterprise Co. (NYSE: HPE)
Hewlett Packard Enterprise's stock soared 17% after the technology firm provided an optimistic outlook for the current quarter and raised its full-year guidance, significantly exceeding Wall Street expectations.
Its second-quarter results also marked the largest earnings beat since 2018.
Alphabet Inc. (NASDAQ: GOOGL)
Alphabet's stock fell 3.2%, underperforming the broader market.
The decline came after the company announced plans to raise $80 billion through a stock sale to fund its artificial intelligence infrastructure buildout, which includes a $10 billion investment from Berkshire Hathaway.
David Krakauer, Vice President of Portfolio Management at Mercer Advisors, commented, "The market remains resilient. Clearly, there's still anticipation for some sort of U.S.-Iran deal, but everything seems quite stable for now."
Major indices had already set new record highs on Monday, led by gains in the technology sector spearheaded by NVIDIA.
Enthusiasm for artificial intelligence trades has driven strong market performance over the past several weeks.
Given the recent rally has been largely driven by a handful of tech stocks, Krakauer expressed concern that investors might be becoming "overly concentrated."
He added, "When you see this kind of narrow rally, you need to be cautious."
Oil prices rose on Monday following reports from Iranian state media that the country's negotiators would cease exchanging messages with the U.S. through intermediaries.
The Iranian news agency Tasnim also stated that Iran would take action to completely block the Strait of Hormuz.
Reports indicated that "no dialogue will take place" until Israel completely halts all attacks on Lebanon and Gaza and fully withdraws its forces from occupied Lebanese territory.
In response, U.S. President Donald Trump stated in a telephone interview that he "doesn't care at all" if peace talks with Iran break down.
In a subsequent post on Truth Social, Trump said he had "a very productive call" with Israeli Prime Minister Benjamin Netanyahu.
In another post, Trump added that negotiations with Iran were "proceeding at a rapid pace."
Comments