Nasdaq closes above milestone 17,000 on Nvidia gains
NEW YORK: The Nasdaq crossed 17,000 for the first time ever on Tuesday, boosted by gains in Nvidia, while the S&P 500 closed barely higher and the Dow ended lower as Treasury yields rose.

Nvidia jumped 7% and boosted shares of other chip stocks as traders returned from a holiday-extended weekend. An index of semiconductors rose 1.9%.

S&P 500 technology led gains among sectors, while healthcare was the biggest decliner along with industrials.

Stocks lost ground in afternoon trading as US Treasury yields climbed to multi-week highs after weak debt auctions.

"We had two disappointing results and we saw yields climb and the (stock) market respond negatively," said Quincy Krosby, chief global strategist, LPL Financial in Charlotte, North Carolina.

"The market doesn't want to see yields edging up... to a level that perhaps threatens the economy and the consumer and thwarts the (Federal Reserve)'s time table for easing."

Investors awaited US inflation data this week that could sway expectations for Fed rate cuts.

The US core Personal Consumption Expenditures Price Index report for April is due later this week. The Fed's preferred inflation barometer is expected to hold steady on a monthly basis.

The Dow Jones Industrial Average fell 216.73 points, or 0.55%, to 38,852.86, the S&P 500 gained 1.32 points, or 0.02%, to 5,306.04 and the Nasdaq Composite gained 99.09 points, or 0.59%, to 17,019.88.

Wall Street has been hitting records recently as investors bet the US central bank could kick off interest-rate cuts this year.

Expectations for the timing of rate cuts have see-sawed, with policymakers wary as data still reflects sticky inflation.

Odds of a rate reduction of at least 25 basis points stand above the 50% mark only for the months of November and December this year, according to the CME FedWatch Tool. The odds of a September rate cut fell to around 46% from over 50% a week ago.

The retail sector will also be in focus this week, with several retailers like Dollar General, Advance Auto Parts and Best Buy due to report results.

US trading moves to a shorter settlement on Tuesday, which regulators hope will reduce risk and improve efficiency, but is expected to temporarily increase transaction failures for investors.

Apple shares rose after iPhone sales in China surged 52% in April from a year earlier, Reuters calculations based on industry data showed. But the stock pared gains late and closed only slightly higher at $189.99.

GameStop shares shot up about 25.2% and closed at $23.78. Late on Friday, the videogame retailer said it had raised $933 million by selling 45 million shares as part of an "at-the-market" offering.

Hess shareholders approved the US$53 billion merger with Chevron. Hess shares closed up 0.4%, while Chevron shares closed up 0.8% and Exxon Mobil shares closed up 1.3%.

On the Nasdaq, declining issues outnumbered advancers by a 1.34-to-1 ratio and by a 1.75-to-1 ratio on the NYSE.

The S&P 500 posted 24 new 52-week highs and 11 new lows while the Nasdaq Composite recorded 93 new highs and 107 new lows.

Volume on US exchanges was 11.91 billion shares, compared with the 12.32 billion average for the full session over the last 20 trading days. — Reuters
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The Nasdaq crossed 17,000 for the first time ever on Tuesday, boosted by gains in Nvidia, while the S&P 500 closed barely higher and the Dow ended lower as Treasury yields rose.