The S&P 500 index climbed 0.8% and set a new record high on strong tech performance, according to multiple reports. Intel led the surge with its best single-day gain since 1987, soaring 23.6% after reporting stronger-than-expected first-quarter results.
Key Takeaways
The S&P 500 index reached a new record high, climbing 0.8% driven by strong tech performance, particularly from Intel which soared 23.6%. The Nasdaq Composite also gained significantly while the Dow Jones Industrial Average saw a slight decline. Oil prices remain volatile due to tensions in the Strait of Hormuz, impacting global markets.
The Dow Jones Industrial Average fell slightly by 79.61 points (0.16%) to close at 49,230.71, while the Nasdaq Composite gained 398.09 points (1.63%) to reach 24,836.60. The S&P 500 has risen nearly 13% in under a month.
Intel's CEO Lip-Bu Tan attributed the company's success to increasing demand for its chips driven by artificial-intelligence technology advancements. Strong profit reports have contributed to Wall Street's rally, according to multiple sources.
The oil market faces significant disruptions due to the Iran war and the blockade of the Strait of Hormuz. Brent crude prices soared back above $100 a barrel amid ongoing tit-for-tat tanker seizures. President Donald Trump extended his previous ceasefire deadline until negotiations with Tehran are complete.
Economic indicators show mixed signals. The S&P Global surveys revealed that while U.S. business activity improved in April, driven mostly by the manufacturing sector, the euro zone faced deepening economic woes from the Iran war. The preliminary reading of the headline index for the euro zone fell to 48.6 in April from 50.7 in March.
The oil market's demand crunch is becoming global, with around 13 million barrels a day of crude and its derivatives trapped behind the Strait of Hormuz for over 50 days. Despite Brent crude prices rising nearly 20% in the last week to $107 a barrel, they are still around half the level seen in 2008 once accounting for inflation.
Investors remain cautious despite market gains. Traditional safe havens like gold and U.S. Treasuries have depreciated since the war began. The Nasdaq has risen 9% since February 28, reflecting a broader tech sector rally.
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