The New York Stock Exchange rallied across the board on Tuesday.
The S&P 500, which best represents market conditions, set a new all-time high, breaking its previous record set on January 24.
However, among the M7 tech stocks, only Nvidia and Microsoft posted modest gains, while the other five declined. Notably, Meta Platforms ended its 20-day consecutive rise that began on January 17.
This further underscores the weakening influence of M7 stocks in the New York market this year.
Meanwhile, Intel Corporation surged by 16% amid rumors of a possible breakup and sale of its divisions.
S&P 500 Reaches New Peak
The New York Stock Exchange reopened with a broad rally after a one-day break.
The S&P 500 stole the show by setting a new record high.
The index closed at 6,129.58, up 14.95 points (0.24%) from last weekend. This surpassed its previous high of 6,118.7,1 set on January 24.
Despite M7’s struggles, the tech-heavy Nasdaq also performed well, gaining 14.49 points (0.07%) to close at 20,041.26.
The Nasdaq has now risen for four consecutive trading days since February 12.
The Dow Jones Industrial Average, comprising 30 blue-chip stocks, joined the rally late in the session, finishing up 10.26 points (0.02%) at 40,556.34.
M7 Struggles
The M7 tech stocks largely struggled throughout the day.
Nvidia initially jumped on positive news from South Korea but saw its gains quickly evaporate.
Nvidia closed at $139.40, up a mere $0.55 (0.40%).
Reports that the South Korean government plans to purchase 10,000 GPUs, including Nvidia’s H100 and H200 chips, to boost AI computing capabilities initially boosted the stock. News of the construction of the world’s largest AI data center in South Korea also contributed to the early surge.
However, Nvidia’s intraday gain of 3.3% largely disappeared as the session progressed.
Only Microsoftonly Microsoft managed to rise $1.21 (0.30%) to $409.6 among the M74.
On the other hand, Meta ended its 21-day winning streak, plummeting $20.30 (2.76%) to $716.37.
Tesla also slipped $1.73 (0.49%) to $354.11, while Apple fell by $0.13 (0.05%) to $244.47.
Alphabet closed down $1.46 (0.79%) to close at $183.77, and Amazon dropped $2.03 or 0.89% to $226.65.
Intel Corporation Skyrockets
Intel Corporation’s stock price soared amid speculation of potential acquisitions.
Intel’s stocks soared due to rumors that the struggling company might split its semiconductor design, marketing, and foundry segments for sale.
Intel Corporation surged by $3.79 (16.06%) to $27.39.
Reports suggest the White House is considering selling Intel Corporation’s foundry division to Taiwan’s TSMC.
Additionally, custom AI chip manufacturer Broadcom is interested in Intel Corporation’s semiconductor design and marketing divisions.
Both potential acquirers, Broadcom and TSMC, saw their stock prices decline.
Broadcom fell $4.51 (1.94%) to $228.53, while TSMC’s American Depositary Receipts (ADRs) dropped $1.16 (0.57%) to $202.74.
SMCI Continues to Rise
Super Micro Computer (SMCI), an AI server manufacturer, extended its surge despite concerns over accounting issues.
SMCI shares rocketed $7.89 (16.47%) higher to $55.80.
Although the company has not yet filed its financial report for the past fiscal year, it is expected to resolve the issue soon.
During a recent business update, Supermicro CEO Charles Liang expressed confidence that the company would submit its financial report by February 25.
Since that announcement, SMCI’s stock price has skyrocketed by 32%.
Oil Prices Jump on Russian Pipeline Attack
Global oil prices rebounded after four days of declines.
Ukraine’s drone attack on a Russian pipeline stoked fears of supply disruptions.
Russia reported that Ukrainian drones targeted a pumping station supplying oil to the Caspian Pipeline Consortium (CPC) main pipeline, which accounts for 1% of the global oil supply.
However, the price surge was limited.
Supply concerns were mitigated by reports of the U.S. and Russia pushing for negotiations to end the war in Ukraine.
Brent crude, the global oil benchmark, settled at $75.84 per barrel for April delivery, up $0.62 (0.82%).
The U.S. benchmark West Texas Intermediate (WTI) crude for March delivery rose $1.11 (1.57%) to $71.85 per barrel.
