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S&P 500, Nasdaq Rally, Middle East Peace Optimism Drive US Equity Futures Higher Pre-Bell

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US equity futures were trending higher pre-bell Wednesday as the S&P 500 and the Nasdaq reached new all-time highs amid continued optimism for an end to the Middle East conflict.

Dow Jones Industrial Average futures were 0.1% higher, S&P 500 futures were up 0.3%, and Nasdaq futures were 0.8% higher.

The S&P 500 added 0.6% and the Nasdaq rose 1.2% to fresh intraday and closing highs, driven by an upswing in the technology sector.

President Donald Trump said in a post on Truth Social that talks with Iran were "proceeding nicely." However, Iran threatened to respond to ceasefire violations after the US military carried out what it called "self-defense strikes" on Iranian missile launch sites and vessels around the Strait of Hormuz. Negotiations to end the war continue.

Traders noted the latest round of earnings, with PDD (PDD) posting lower Q1 non-GAAP earnings amid higher revenue.

Oil prices were lower, with front-month global benchmark North Sea Brent crude down 4.6% at $92.25 per barrel and US West Texas Intermediate crude 6% lower at $88.24 per barrel.

The Richmond Fed manufacturing index for May is scheduled to be released at 10 am ET.

In other world markets, Japan's Nikkei closed flat, Hong Kong's Hang Seng ended 1.1% lower, and China's Shanghai Composite finished 1.3% lower. Meanwhile, the UK's FTSE 100 was up 0.2%, and Germany's DAX index was 0.2% higher in Europe's early afternoon session.

In equities, Micron Technology (MU) stock was up 7.4% as the company's market capitalization reached $1 trillion for the first time. Fellow tech firms Marvell Technology (MRVL), Seagate Technology (STX), and Western Digital (WDC) all saw their shares rise as part of a broader tech rally. Marvell stock was up 6.1%, Seagate shares were higher by 5.4%, and Western Digital stock was up 5.5%.

On the losing side, ExxonMobil (XOM) shares were down 2.1% after a Reuters report that Occidental Petroleum (OXY) was acquiring a 10% stake in the company's deepwater exploration block offshore Trinidad and Tobago. TotalEnergies (TTE) stock was 3.3% lower after a Bloomberg News report that the company is facing a dispute with Mozambique over about $2 billion in costs tied to delays at its liquefied natural gas project in the country. PDD shares were down 8.8% after the company reported its Q1 financial results.

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Technology Catapults S&P 500, Nasdaq to Fresh All-Time Highs

US equity indexes were mixed, as technology helped push the S&P 500 and the Nasdaq Composite to new peaks amid declining government bond yields and divergent crude oil futures.The Nasdaq jumped 1.2% to 26,656.18, with the S&P 500 up 0.6% to 7,519.12 at the close on Tuesday. Both the gauges hit fresh all-time highs earlier in the day. The Dow Jones Industrial Average, however, slipped 0.2% to 50,461.68.Most US Treasury yields fell, with the 10-year down 8.1 basis points to 4.49% and the two-year down 8.7 basis points to 4.04%.Micron Technology's (MU) market capitalization touched $1 trillion for the first time after several bullish analyst reports. The chipmaker's shares soared 19% after midday, the top performer on the S&P 500 and the Nasdaq.Among stocks with a market capitalization of more than $200 billion, nine in the top 10 are semiconductor companies, and the remaining one is a manufacturer of computer hardware, according to data compiled by Finviz.The US is touting progress toward a peace deal with Iran to end the nearly three-month war, even amid fresh hostilities and uncertainty over the vital Strait of Hormuz, Bloomberg reported Tuesday. Security in the crucial energy waterway remained unclear Tuesday after the two sides exchanged strikes overnight, and the US Central Command pushed back reports suggesting the military was helping escort vessels.Iran's top negotiator, Mohammad Baqer Qalibaf, was in Doha for talks with Qatar's prime minister on a potential deal, an official briefed on the visit told Reuters. Qalibaf returned to Iran after seeking agreement on the release of around $24 billion of frozen Iranian funds as part of the memorandum of understanding, the news report cited Iranian media.West Texas Intermediate crude oil futures dropped 2.9% to $93.70, while Brent crude futures jumped 3.5% to $99.67.While precise timing remains elusive, in the event of an Iran peace agreement, two to four weeks is a reasonable starting point for clearing the Gulf backlog and restoring shipping patterns, Vikas Dwivedi, global energy strategist at Macquarie Group, said in a note."Trust in a durable peace and unencumbered (tolls, mines, harassment) transit will be key in this process," Dwivedi said. "From here, we believe flows could ramp back towards full levels after another 2-4 weeks."In economic news, the Conference Board's measure of consumer confidence fell to 93.1 in May from 93.8 in April, still above the 92.0 expected in a Bloomberg-compiled survey."Consumer confidence edged downward in May as the inflationary impacts of the war in the Middle East intensified," said Dana Peterson, Chief Economist at The Conference Board."Consumer appraisals of current business conditions and the current labor market were moderately less positive compared to last month," Peterson said. "This was somewhat offset by modest improvements in consumers' expectations for business conditions and the labor market six months from now."The Case-Shiller National Home Price Index rose by 0.7% in March, before seasonal adjustments, following a 0.3% increase in February. National home prices were up 0.7% year-over-year, down from 0.8% in February.In precious metals, gold futures slipped 0.3% to $4,506.8, while silver futures jumped 1.4% to $77.28.

$^DJI$^IXIC$^SPX$MU
Asia Markets

Technology Helps S&P 500, Nasdaq Break Records; Micron Technology Touches $1 Trillion in Market Capitalization

US equity indexes traded mixed, with the S&P 500 and the Nasdaq hitting new all-time highs as technology topped charts and government bond yields slid sharply lower.Crude oil futures were mixed after midday Tuesday as efforts continued to end the war against Iran.The Nasdaq Composite jumped 0.9% to 26,572.8, with the S&P 500 up 0.5% to 7,511.2, kicking off the holiday-shortened week on a strong note. Both the Nasdaq and the S&P 500 hit fresh all-time highs earlier in the session. The Dow Jones Industrial Average, however, fell 0.3% to 50,423.4.Industrials and materials were among the top three gainers intraday. Energy and consumer staples led the decliners.Micron Technology's (MU) market capitalization touched $1 trillion for the first time after several bullish analyst reports. Shares traded about 18% higher after midday, making them the top performers on the S&P 500 and the Nasdaq.Among stocks with a market capitalization of more than $200 billion, eight in the top 10 are semiconductor companies, and the remaining two are manufacturers of computer hardware, according to data compiled by Finviz.Iran's Islamic Revolutionary Guard Corps said it has a "legitimate" right to respond to any "violation" of the ceasefire after the US military carried out what it called "self-defense strikes" targeting Iranian missile launch sites and boats around the Strait of Hormuz, CNN reported Tuesday.The strikes came hours after Iranian negotiators met with Qatari mediators in Doha for talks in coordination with the US, the news report said. The US and Iran are working toward a memorandum of understanding, but disputes over language concerning Iran's nuclear program and sanctions have held up a deal, the news report added.US Treasury yields fell, with the 10-year down 6.8 basis points to 4.5% and the two-year lower by 5.9 basis points to 4.07%.West Texas Intermediate crude oil futures dropped 2.7% to $93.97, while Brent crude futures jumped 3.7% to $99.85.In economic news, the Conference Board's measure of consumer confidence fell to 93.1 in May from 93.8 in April, still above the 92.0 expected in a Bloomberg-compiled survey."Consumer confidence edged downward in May as the inflationary impacts of the war in the Middle East intensified," said Dana Peterson, chief economist at The Conference Board."Consumer appraisals of current business conditions and the current labor market were moderately less positive compared to last month," Peterson said. "This was somewhat offset by modest improvements in consumers' expectations for business conditions and the labor market six months from now."The Dallas Fed's monthly manufacturing index rebounded to 0.4 in May from minus 2.3 in April, compared with expectations for a smaller increase to 0.0.The Case-Shiller National Home Price Index rose by 0.7% in March, before seasonal adjustments, following a 0.3% increase in February. National home prices were up 0.7% year-over-year, down from 0.8% in February.Further in company news, AutoZone (AZO) reported mixed fiscal Q3 results on Tuesday, with earnings topping market estimates and revenue falling short. Shares sank 12%, the worst performer on the S&P 500.In precious metals, gold futures slipped 0.2% to $4,509.5, while silver futures climbed 0.4% to $76.52.

$^DJI$^IXIC$^SPX$AZO$MU
Asia Markets

Exchange-Traded Funds Rise, US Equities Mixed After Midday

Broad Market IndicatorsBroad-market exchange-traded funds IWM and IVV were higher. Actively traded Invesco QQQ Trust (QQQ) gained 1.4%.US equity indexes were mixed after midday Tuesday, with technology leading sector charts amid declining government bond yields and mixed crude oil futures, while efforts continued to end the war against Iran.EnergyIShares US Energy ETF (IYE) and the State Street Energy Select Sector SPDR (XLE) each lost about 1.5%.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) was 2.2% higher; iShares US Technology ETF (IYW) added 1.9%, and iShares Expanded Tech Sector ETF (IGM) was up 2%.The State Street SPDR S&P Semiconductor (XSD) gained 4%, and iShares Semiconductor (SOXX) was up 4.9%.FinancialThe State Street Financial Select Sector SPDR (XLF) fell 0.2%. Direxion Daily Financial Bull 3X Shares (FAS) declined 0.4%, and its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), climbed up 0.3%.CommoditiesCrude oil fell 2.6%, and the United States Oil Fund (USO) slipped 2.1%. Natural gas rose 1%, and the United States Natural Gas Fund (UNG) was up 1%.Gold on Comex dipped 0.4%, and the State Street SPDR Gold Shares (GLD) shed 0.1%. Silver rose 0.4%, and iShares Silver Trust (SLV) added 0.7%.ConsumerThe State Street Consumer Staples Select Sector SPDR (XLP) eased 1.2%. The Vanguard Consumer Staples ETF (VDC) lost 1.3%, and iShares Dow Jones US Consumer Goods (IYK) was down 1.2%.The State Street Consumer Discretionary Select Sector SPDR (XLY) shed 0.2%. VanEck Retail ETF (RTH) fell 1.5%, and the State Street SPDR S&P Retail (XRT) rose 0.1%.HealthcareThe State Street Health Care Select Sector SPDR (XLV) eased 0.6%, iShares US Healthcare (IYH) fell 0.4%, and Vanguard Health Care ETF (VHT) was down 0.4%. IShares Biotechnology ETF (IBB) rose 0.4%.IndustrialThe State Street Industrial Select Sector SPDR (XLI) added 1.2%. Vanguard Industrials Index Fund (VIS) and iShares US Industrials (IYJ) were also higher.CryptocurrencyIn midday activity, bitcoin (BTC-USD) fell 1%. Among cryptocurrency ETFs, ProShares Bitcoin ETF (BITO) rose 0.8%, ProShares Ether ETF (EETH) was up 0.5%, and ProShares Bitcoin & Ether Market Cap Weight ETF (BETH) was 1.2% higher.

$^DJI$^EEM$^EXI$^FAS$^FAZ$^GLD$^IBB$^IGM$^IGV$^IPK$^IVV$^IWM$^IXIC$^IYE$^IYH$^IYJ$^IYK$^IYW$^PMR$^QQQ$^RTH$^SOXX$^SPX$^SPY$^UNG$^USO$^VDC$^VHT$^VIS$^XLE$^XLF$^XLI$^XLK$^XLP$^XLV$^XRT$^XSD$BETH$BITO$EETH