US open: Stocks higher as chip rebound, easing crude prices steady sentiment

(Sharecast News) - Major indices opened higher on Tuesday as chipmakers extended their rebound and oil prices eased on hopes of progress in talks between Washington and Tehran.

As of 1445 BST, the Dow Jones Industrial Average was up 0.72% at 51,153.81, while the S&P 500 advanced 0.72% to 7,458.79 and the Nasdaq Composite came out of the gate 1.02% firmer at 26,194.60.

The Dow opened 367.80 points higher on Tuesday, more than reversing losses recorded in the previous session, with Micron Technology rising 3.20% in early action after a 9.87% bounce on Monday, clawing back some of the heavy losses recorded last week as investors questioned whether the AIdriven rally in chips had overheated.

Elsewhere in the corporate space, OpenAI confidentially filed for an IPO late Monday, with some economists viewing the offering as further fuel for the AIdriven bull market, while others have warned that its $1.75trn valuation could signal a peak in the trend.

Oil prices were also in focus, with West Texas Intermediate crude slipping 2.75% to trade $88.79 a barrel after Donald Trump said a deal between Washington and Tehran could be reached within "two or three days", potentially reopening the Strait of Hormuz "immediately".

Trump's announcement comes after Iran halted strikes against Israel on Monday, but warned it would resume attacks if Israeli operations in Lebanon continued. Hours later, Israeli prime minister Benjamin Netanyahu said the conflict with Iran and Hezbollah was "not yet over".

On the macro front, US smallbusiness sentiment weakened in May, according to the National Federation of Independent Business' small business optimism index, slipping to 95.3 from 95.9 in April - the lowest reading since October 2024 and below expectations of 96. Taxes were cited as the most pressing issue by 19% of respondents, up two points on the month, followed by inflation at 18%, while supplychain issues also continued to bite, with 70% saying disruptions were affecting their business to some degree. Only 16% plan capital outlays in the next three to six months, the weakest level since 2009. A net 36% of owners raised selling prices, the most since March 2023, while a net 34% said they plan to make further increases - the highest reading since July 2022.

On another note, the US goods deficit narrowed to $83bn in April, according to revised data from the Census Bureau, down from $85.1bn in March. Exports surged to a record $219.5bn on the back of strong sales of capital goods, industrial supplies and consumer goods, while imports rose to $302.5bn - their highest level in more than a year.

Still to come, April wholesale inventories numbers and May existing home sales data will follow at 1500 BST.

No major corporate earnings were slated for release on Tuesday.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Intel Corp. (INTC) $112.88 4.78%

Caterpillar Inc. (CAT) $929.69 1.26%

American Express Co. (AXP) $317.52 1.23%

Boeing Co. (BA) $218.16 1.04%

Chevron Corp. (CVX) $188.57 1.03%

Nike Inc. (NKE) $43.53 0.74%

Dow Chemical Co. (DOW) $33.18 0.68%

Unitedhealth Group Inc. (UNH) $409.50 0.68%

Travelers Company Inc. (TRV) $299.36 0.63%

Goldman Sachs Group Inc. (GS) $1,062.27 0.61%

Dow Jones - Fallers

Apple Inc. (AAPL) $299.37 -4.42%

Microsoft Corp. (MSFT) $407.99 -3.42%

Amgen Inc. (AMGN) $348.55 -1.70%

Salesforce.Com Inc. (CRM) $178.82 -1.68%

International Business Machines Corporation (CDI) (IBM) $280.28 -1.41%

Visa Inc. (V) $318.19 -1.21%

Merck & Co. Inc. (MRK) $119.85 -1.05%

Walt Disney Co. (DIS) $98.91 -0.84%

Cisco Systems Inc. (CSCO) $123.17 -0.60%

JP Morgan Chase & Co. (JPM) $314.55 -0.40%

S&P 500 - Risers

Applied Materials Inc. (AMAT) $507.27 6.05%

J. M. Smucker Co. (SJM) $107.90 6.02%

Corning Inc. (GLW) $190.00 5.61%

KLA-Tencor Corp. (KLAC) $2,169.46 5.20%

Bath & Body Works, Inc. (BBWI) $18.57 4.99%

Kohls Corp. (KSS) $16.35 4.92%

Intel Corp. (INTC) $112.88 4.78%

Helmerich & Payne Inc. (HP) $38.96 4.48%

Borg Warner Inc. (BWA) $75.81 4.45%

Fluor Corp. (FLR) $49.88 4.12%

S&P 500 - Fallers

Coterra Energy Inc. (CTRA) $32.56 -8.62%

Meta Platforms Inc. (META) $589.72 -6.22%

Nektar Therapeutics (NKTR) $56.91 -5.12%

Booking Holdings Inc. (BKNG) $163.80 -5.09%

Cintas Corp. (CTAS) $174.24 -4.82%

Hershey Foods Corp. (HSY) $175.85 -4.70%

FMC Corp. (FMC) $10.99 -4.64%

Apple Inc. (AAPL) $299.37 -4.42%

Sba Communications Corp. (SBAC) $202.13 -4.34%

Regeneron Pharmaceuticals Inc. (REGN) $626.49 -4.11%

Nasdaq 100 - Risers

Applied Materials Inc. (AMAT) $507.27 6.05%

KLA-Tencor Corp. (KLAC) $2,169.46 5.20%

Micron Technology Inc. (MU) $982.02 4.93%

Intel Corp. (INTC) $112.88 4.78%

DENTSPLY Sirona Inc. (XRAY) $10.40 4.32%

Kraft Heinz Co. (KHC) $23.40 3.75%

Align Technology Inc. (ALGN) $173.07 3.02%

Seagate Technology Plc (STX) $900.63 3.00%

Intuit Inc. (INTU) $300.85 2.72%

Asml Holdings N.V. (ASML) $1,774.44 2.38%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

Meta Platforms Inc. (META) $589.72 -6.22%

Booking Holdings Inc. (BKNG) $163.80 -5.09%

Check Point Software Technologies Ltd. (CHKP) $128.08 -5.08%

Cintas Corp. (CTAS) $174.24 -4.82%

Apple Inc. (AAPL) $299.37 -4.42%

Regeneron Pharmaceuticals Inc. (REGN) $626.49 -4.11%

Amazon.Com Inc. (AMZN) $247.92 -4.09%

Autodesk Inc. (ADSK) $223.33 -4.04%

Gilead Sciences Inc. (GILD) $125.80 -3.46%