S&P 500 And Nasdaq Close At Record Highs, Dow Climbs Amid Hopes Of Diplomatic Resolution Between US And Iran — MU, QCOM, LUNR, LLY, CODX In Focus

• The S&P 500 and the Dow Jones rose 0.6% and 0.2%, respectively, and the Nasdaq gained 1.2%.
• President Donald Trump said Monday that talks with Iran to end the war were “proceeding nicely.”
• Russell 2000 hits record highs.

U.S. benchmark stock indices inched higher on Tuesday as investors assessed positive signs of ongoing negotiations between U.S. and Iran, while a surge in Micron Technology owing to UBS’ price target hike supported broader technology shares. 

The S&P 500 rose 0.6%, the Nasdaq gained 1.2% to record highs, and the Dow Jones jumped 0.2%. The Russell 2000, which tracks stocks with small market capitalizations, inched 1.8% higher to its record high, gaining for the fourth consecutive session. 

Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY) rose 1%, and Invesco QQQ Trust (QQQ) ended Tuesday around 1.4% higher. The SPDR Dow Jones Industrial Average ETF Trust (DIA) gained 1.3%. 

The VanEck Semiconductor ETF (SMH) rose 4.5%. 

Meanwhile, retail sentiment on Stocktwits for SPY, QQQ and DIA was all in the “extremely bullish” territory with “extremely high” message volumes.  

US Market Drivers

President Donald Trump said that talks with Iran to end the war were “proceeding nicely.” But, Trump also warned the U.S. could go on the offensive if negotiations break down, while Secretary of State Marco Rubio cautioned that any accord would likely take a few days to finalize. 

“Market participants are placing their bets on peace and subsequently buying into very strong equity fundamentals,” said Kyle Rodda at Capital.com in an interview with Bloomberg. 

However, following Trump’s comment, the U.S. and Iran exchanged military contact, which happened amid ongoing negotiations between Washington and Tehran, targeting sites in southern Iran. 

U.S. crude came off its lows following the strikes, with West Texas Intermediate futures for July, falling 2.81% to settle at $93.89 per barrel. Brent, meanwhile, gained 3.58% and settled at $99.58 per barrel.

“You’ve got investors that are, I think, pathologically optimistic here that the war is going to end soon and that things are going to resume back to the way they were prior to the war,” Ron Albahary, LNW chief investment officer, told CNBC. 

There’s a “tug of war going on” in the market, Albahary added. 

While the ongoing conflict kept investor confidence in check, strong jumps in Micron, Qualcomm and Alphabet shares pushed the S&P 500 and Nasdaq to record highs. 

Trending Stocks To Watch 

Micron Technology (MU): UBS Group AG raised its price target on the chipmaker to $1,625, a more than 100% upside. 

Qualcomm (QCOM): The stock rose 4% after it reached a deal with TikTok owner ByteDance Ltd. to supply chips for artificial-intelligence data centers, Bloomberg reported.

Intuitive Machines (LUNR): Shares tumbled on Tuesday after the space exploration company was bypassed by NASA in the selection process for developing a new lunar rover for the Moon Base under the Artemis mission.     

Eli Lilly and Company (LLY): Signed its 10th deal of the year, snapping up three infectious-disease treatment firms in multi-billion dollar deals as the pharmaceutical behemoth broadens its ambitions beyond the booming obesity market.  

Co-Diagnostics (CODX): Stock soared nearly 80% on Tuesday, extending a blistering six-session rally that has propelled the stock more than 630%, as investors rushed into diagnostics plays amid growing concerns over the Ebola outbreak spreading across the Democratic Republic of Congo and Uganda. 

Read More: LUNR Stock Tumbles As NASA Chooses Rivals To Deliver Lunar Vehicles For Moon Base

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