The resurgence of tech stocks supported major U.S. equity indexes on Tuesday as they traded in the positive territory. The S&P 500 rose 1.0 percent, while the Dow rose 0.3 percent. The Nasdaq gained 1.5% as a result of the outperformance of the tech sector.
The S&P 500’s strongest daily gain on Tuesday came from Palantir Technologies (PLTR), a data analytics company. Ark Invest, a company that manages assets, emphasized software as a sector where AI trends could have a greater impact.
Ark Invest Europe’s managing director, Rahul Bhushan, said that Palantir could be on the verge of taking market share from the mega-cap tech companies whose cloud computing platforms have been a big part of the AI boom.
Shares of Edwards Lifesciences (EW) rose 6.2%. After the Centers for Medicare and Medicaid Services (CMS) stated that it was evaluating the possibility of national Medicare reimbursement for transcatheter repair procedures, the medical device company may see increased momentum for its heart valve repair system.
Following favorable remarks from a number of investment research firms, Palo Alto Networks (PANW), a provider of cybersecurity services, saw its stock rise 5.1%. Goldman Sachs raised Palo Alto’s price target, implying that the company’s plan to move up to more sophisticated serviced offerings could fuel growth. In the meantime, with an “outperform” rating, BNP Paribas began covering the networking technology company’s stock.
In light of reports suggesting that tensions in the Middle East may be decreasing, crude oil futures prices dropped by more than 4%. Oil and gas stocks were put under pressure as prices fell. Shares of Marathon Petroleum (MPC) fell 7.7%, the most of any stock in the S&P 500. The session ended with a 5.3% decline in Valero Energy (VLO), a rival refiner.
After the company reported encouraging delivery figures for its graphics processing units, shares of Super Micro Computer (SMCI) fell 5.0% on Tuesday, reversing some of the stock’s strong gains from the previous session. The Department of Justice is reportedly looking into Supermicro’s accounting practices, according to reports that surfaced last month.
KeyBanc analysts lowered their assessment of Celanese (CE) shares from “overweight” to “sector weight,” citing softness in the automotive end market and a cautious outlook for the foreseeable future. On Tuesday, Celanese shares lost 4.6 percent.
