US close: Nvidia pushes Nasdaq to new high, but Dow sinks
US equity indices finished mixed on Tuesday, the Dow falling more than 200 points on the back of inflation concerns and strong gains for chipmaker Nvidia pushing the Nasdaq to a new record high.
Just seven stocks on the Dow finished in positive territory, with the index closing 0.55% lower at 38,85286 as it continues its retreat from its recent all-time closing high of 40,003.59. The benchmark has now fallen four of the past six sessions since hitting the record on 17 May.
While the S&P 500 finished flat, up just 0.02% at 5.306.04, the Nasdaq Composite set another closing peak of 17,019.88, up 0.59% on the day, with heavyweight chip giant Nvidia surging more than 7% to a new high as it continues its stellar performance.
Nevertheless, worries about inflation were weighing on investors' minds on Tuesday ahead of a key inflation indicator due out on Friday – the personal consumption expenditures index – with a surge in the price of oil not helping matters.
Neel Kashkari, the president of the Minneapolis Federal Reserve, dampened market sentiment after saying that the Fed is looking for "many months" of positive inflation data before it considers cutting interest rates.
He also said that rate hikes weren't strictly out of the question just yet. “I’ve been asked many times when we take potential interest rate increases off the table,” Kashkari said. “I don’t think anybody has formally taken them off the table.”
The yield on a 10-year US Treasury note was 7.7 basis points higher at 4.547% – its highest in more than three weeks.
Tuesday's economic data schedule was relatively light. The S&P/Case-Shiller home price index showed price growth accelerated from 7.3% to 7.4% in March – the largest increase since October 2022. Meanwhile, the Conference Board's national consumer confidence index rose for the first time in four months in May, from 97.5 to 102.0.
Nvidia rally continues
Nvidia's share price finished 7.1% higher at a new closing high of $1,141, adding to recent gains after the chipmaker smashed forecasts with its quarterly results last week. The stock has now jumped by a third since the start of May, and by 137% over the year to date.
Walgreens Boots Alliance saw shares sink more than 4%, dropping to its lowest level since 1998. The stock has now fallen by more than 42% since the start of 2024.
Marathon Oil and Chevron were notable risers as they followed crude prices higher. WTI crude was up 3.15 at $80.16 a barrel – its highest in four weeks – on the back of geopolitical uncertainty in the Middle East, along with expectations that OPEC+ may extend output cuts into the second half of the year.
Meme stock GameStop jumped 25% after the video-game retailer completed a $933m equity offering, which it intends to use for "general corporate purposes". The share sale was first proposed two weeks ago.
Broker comments were supporting a number of blue chips: Norwegian surged after Mizuho lifted the cruise operator from 'neutral' to 'buy'; rental platform Airbnb was helped by a Wedbush upgrade to 'outperform'; while chemicals giant DuPont was raised from 'neutral' to 'buy' by Citi.
Dow Jones - Risers
Intel Corp. (INTC) $31.09 1.20%
Home Depot Inc. (HD) $328.44 1.03%
Chevron Corp. (CVX) $159.02 0.81%
Walt Disney Co. (DIS) $102.33 0.56%
Dow Chemical Co. (DOW) $57.99 0.39%
Nike Inc. (NKE) $91.90 0.17%
Boeing Co. (BA) $174.74 0.13%
Dow Jones - Fallers
Walgreens Boots Alliance, Inc. (WBA) $15.35 -4.24%
Merck & Co. Inc. (MRK) $126.00 -2.70%
McDonald's Corp. (MCD) $253.12 -1.93%
Amgen Inc. (AMGN) $300.05 -1.89%
Johnson & Johnson (JNJ) $144.41 -1.74%
Travelers Company Inc. (TRV) $210.18 -1.48%
Procter & Gamble Co. (PG) $162.91 -1.46%
Visa Inc. (V) $271.06 -1.25%
3M Co. (MMM) $98.49 -1.19%
Salesforce.Com Inc. (CRM) $269.33 -1.09%
S&P 500 - Risers
Nvidia Corp. (NVDA) $1,139.90 7.06%
Ralph Lauren Corp (RL) $181.42 4.59%
Foot Locker Inc. (FL) $23.05 4.42%
Freeport-McMoRan Inc (FCX) $53.61 4.04%
DaVita Inc (DVA) $143.63 3.67%
Marathon Oil Corp. (MRO) $26.46 3.52%
Norwegian Cruise Line Holdings Ltd (NCLH) $16.56 3.47%
Carnival Corp. (CCL) $15.64 3.34%
Advanced Micro Devices Inc. (AMD) $171.60 3.15%
Under Armour Inc. Class A (UAA) $6.84 2.93%
S&P 500 - Fallers
Nektar Therapeutics (NKTR) $1.52 -7.32%
Hanesbrands Inc. (HBI) $4.79 -6.45%
Pentair plc (PNR) $78.96 -4.59%
Walgreens Boots Alliance, Inc. (WBA) $15.35 -4.24%
Ford Motor Co. (F) $11.69 -3.87%
Jack Henry & Associates Inc. (JKHY) $162.57 -3.58%
Fidelity National Information Services Inc. (FIS) $75.06 -3.51%
CVS Health Corp (CVS) $53.66 -3.38%
H&R Block Inc. (HRB) $48.94 -3.37%
Nasdaq Inc (NDAQ) $60.15 -3.34%
Nasdaq 100 - Risers
Nvidia Corp. (NVDA) $1,139.90 7.06%
Asml Holdings N.V. (ASML) $990.18 3.55%
Seagate Technology Plc (STX) $96.71 2.68%
Micron Technology Inc. (MU) $132.65 2.44%
Western Digital Corp. (WDC) $76.08 1.70%
Hasbro Inc (HAS) $61.69 1.69%
Take-Two Interactive Software Inc. (TTWO) $156.75 1.39%
QUALCOMM Inc. (QCOM) $213.16 1.33%
Intel Corp. (INTC) $31.09 1.20%
KLA-Tencor Corp. (KLAC) $785.93 0.88%
Nasdaq 100 - Fallers
Walgreens Boots Alliance, Inc. (WBA) $15.35 -4.24%
Paychex Inc. (PAYX) $120.23 -3.22%
Ross Stores Inc. (ROST) $137.64 -3.16%
Check Point Software Technologies Ltd. (CHKP) $149.66 -3.08%
American Airlines Group (AAL) $13.43 -3.00%
O'Reilly Automotive Inc. (ORLY) $957.46 -2.99%
eBay Inc. (EBAY) $52.85 -2.86%
Gilead Sciences Inc. (GILD) $63.91 -2.69%
Workday, Inc. (WDAY) $215.51 -2.44%
Vertex Pharmaceuticals Inc. (VRTX) $446.48 -2.29%