US benchmark equity indexes were mixed intraday as traders monitored the latest developments in the Middle East conflict.
The Nasdaq Composite was up 0.8% at 26,566.9 after midday Tuesday, while the S&P 500 rose 0.4% to 7,505.5. The Dow Jones Industrial Average fell 0.4% to 50,392.7 after closing at a record high in the previous session.
Among sectors, technology paced the gainers intraday Tuesday, while energy saw the steepest decline.
US markets were closed Monday for the Memorial Day holiday.
West Texas Intermediate crude oil was down 2.7% at $93.97 a barrel intraday Tuesday, while Brent rose 3.9% to $99.85.
Iran has a "legitimate" right to respond to any violation of a ceasefire by the US, CNN reported Tuesday, citing Tehran's Islamic Revolutionary Guard Corps. Earlier, the US military targeted Iranian missile launch sites and boats around the crucial Strait of Hormuz in what it described as "self-defense strikes," according to the report.
US President Donald Trump said Monday that negotiations with Iran were "proceeding nicely," but encouraged countries including Saudi Arabia and Pakistan to join the Abraham Accords, aimed at normalizing diplomatic ties with Israel.
US Treasury yields were lower intraday Tuesday, with the 10-year rate down 6.4 basis points at 4.51% and the two-year rate losing 5.9 basis points to 4.07%.
In company news, Micron Technology (MU) shares surged nearly 19%, the best performer on the S&P 500, as UBS Securities boosted it price target on the semiconductor manufacturer's stock to $1,625 from $535.
"Our supply chain work on long-term agreements across the memory industry suggests that up to 30% of (double data rate) volumes industry-wide will be soon locked in at pricing that is just slightly below current levels, and these agreements will allow (Micron) to trade some near-term revenue for demand visibility and a smoother earnings profile," UBS said in a note to clients.
Western Digital (WDC) shares jumped 9.2%, the second-top gainer on the S&P 500, followed by On Semiconductor (ON), up 9%.
Elbit Systems' (ESLT) first-quarter results rose year on year, while the company said its order backlog topped $30 billion, lifted by surging demand from Israel's Ministry of Defense amid ongoing regional conflicts. The company's US-listed shares were up 7.5% intraday.
AutoZone (AZO) shares plummeted 9.8%, the steepest decline on the S&P 500, after the auto parts retailer's fiscal third-quarter earnings topped market estimates, but revenue fell short.
Some 95% of S&P 500 companies have reported their quarterly financial results in the latest cycle, with earnings up about 28% from a year earlier and revenue rising 11.1%, Oppenheimer Asset Management said in a note.
Ahead of the earnings season, FactSet put expected earnings growth at 12.6% year over year, according to the brokerage.
"The (first-quarter) earnings season rolled on, with many firms reporting strong results and positive guidance," Oppenheimer Asset Management Chief Investment Strategist John Stoltzfus said. "Bears, skeptics, and nervous investors have been able to take some profits without (the fear of missing out) within what appears to us a bull market that persists having legs to run further."
Costco Wholesale (COST), Marvell Technology (MRVL), Salesforce (CRM), and Dell Technologies (DELL) are some of the major companies slated to report results this week.
Gold was down 0.4% at $4,506.70 per troy ounce, while silver rose 0.6% $76.63 per ounce.
