US Stocks Mixed to Begin Holiday-Shortened Week
US stocks traded mixed on Tuesday, with the benchmark S&P 500 (^GSPC) gaining nearly 0.2% to a fresh record close of 6,129.58. The Dow Jones Industrial Average (^DJI) and Nasdaq Composite (^IXIC) also closed marginally higher.
Market Drivers
* Fed Policy Uncertainty: Investors awaited the release of the minutes from the Fed's January meeting on Wednesday, seeking clues on future interest rate decisions.
* Russia-Ukraine Talks: US-Russia talks on ending the Ukraine war commenced in Saudi Arabia, adding uncertainty to markets.
* Earnings Season: Results from 46 S&P 500 companies were due this week, including Baidu (BIDU) and Alibaba (BABA).
Notable Stock Movers
* Intel (INTC): Gained over 16% on reports of potential acquisition interest.
* Walgreens (WBA): Rose over 10% amid M&A rumors.
* Super Micro Computer (SMCI): Climbed over 16% after providing an update on its efforts to avoid Nasdaq delisting.
* Meta (META): Declined over 3%, putting its 20-session winning streak at risk.
* Nike (NKE): Surged over 5% after announcing a partnership with SKIMS.
Market Trends
* Broadening Market Participation: Nearly 70% of S&P 500 companies outperformed the index, indicating a widening distribution of gains.
* Dollar Strength Impact on Tech: The strong US dollar remained a headwind for global tech companies, including Apple (AAPL) and Meta (META).
* Chip Sector Rally: Chip stocks led the gains, with Nvidia (NVDA), Micron (MU), and Intel (INTC) posting significant gains.
* Construction Weakness: The National Association of Home Builders' Housing Market Index declined to its lowest level in five months, reflecting concerns over rising mortgage rates and costs.