Wall Street ended Tuesday on a split note, with the Dow Jones Industrial Average managing a narrow gain while technology stocks dragged the Nasdaq and S&P 500 lower. A promising morning that saw chip stocks bouncing from recent lows was derailed at midday when President Donald Trump said the United States “must respond” after Iran allegedly targeted a U.S. military helicopter near the Strait of Hormuz. The comments sent stocks skidding sharply lower before a partial recovery softened the damage into the close.
What Moved Markets
The Dow Jones Industrial Average gained 86 points, or 0.17%, to close at 50,871.93. The S&P 500 slipped 19 points, or 0.26%, to finish at 7,386.65. The Nasdaq Composite fared worst among the major indexes, falling 251 points, or 0.97%, to close at 25,678.82.
The session started on a constructive note. Semiconductor stocks, which had been battered over the prior week — the Nasdaq fell 4% last Thursday alone — staged an early rebound, lifting all three indexes into positive territory at the open. Investors were also cheered by early signals that U.S.-Iran ceasefire talks could be nearing a resolution, with Trump saying a deal could come “in two or three days.” Oil prices fell more than 2% in response, with West Texas Intermediate crude dropping to around $89 per barrel.
That optimism unraveled around midday. Trump reversed tone, telling reporters that Iran had downed an American helicopter and that the U.S. had no choice but to respond. The Nasdaq plunged more than 3% in a matter of minutes, and the S&P 500 fell as much as 2%. Stocks recovered some ground as the session wound down, but the damage to tech was largely done. The S&P 500’s technology sector finished down nearly 2% on the day and has now shed roughly 9.5% over the past week. Of the eleven S&P 500 sectors, only tech and energy closed in the red.
Notable Movers
Nuvalent (NUVL) was the standout winner of the session, surging roughly 39% after British drugmaker GSK announced an all-cash deal to acquire the oncology biotech for $10.6 billion, or about $124 per share — a 40% premium to Monday’s close. Nuvalent focuses on targeted lung cancer therapies tied to specific genetic mutations, and the deal gives GSK a pipeline to help offset revenue losses when its top HIV drug loses patent protection in 2028.
J.M. Smucker (SJM) climbed about 5.8% after the company behind Folgers, Hostess, and Jif reported better-than-expected quarterly earnings. The gain came despite management warning that sales are expected to decline in the coming fiscal year, suggesting investors viewed the earnings beat as a near-term positive in an otherwise cautious environment.
Sandisk (SNDK) added around 7% after analysts at Mizuho and Bank of America Securities raised their price targets on the stock. Lam Research (LRCX) also rose roughly 7.5%, benefiting from the morning’s broader chip-stock lift.
SailPoint (SAIL) was the session’s notable loser, tumbling about 12% after the cybersecurity company reported a first-quarter earnings miss. The company posted a loss of 13 cents per share against analyst expectations for a 4-cent profit, though revenue of $280 million topped estimates.
Qualcomm (QCOM) fell roughly 4.4% and Marvell Technology (MRVL) slipped about 4.2%, both caught up in the continued rotation away from semiconductor names that has defined the past week of trading.
Looking Ahead
The biggest item on the calendar for Wednesday is the Consumer Price Index report for May. Economists surveyed by Reuters are expecting a 4.2% year-over-year reading, which would be the highest since April 2023 and a step up from the 3.8% rate recorded in April. Analysts have pointed to elevated energy prices tied to the Strait of Hormuz disruption as a key driver of the increase. A hot number could revive fears of further Federal Reserve rate hikes and add to the pressure already facing growth and technology stocks. On the geopolitical front, Iran-related headlines remain a wildcard — any sign of a deal would likely lift oil-sensitive sectors, while an escalation could accelerate the defensive rotation that has already been underway. Investors will also keep an eye on the Producer Price Index due Thursday for additional inflation signals before the week is out.