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.