Indexes

The headline indexes and the action underneath them pulled in opposite directions on Tuesday. The S&P 500 and the Nasdaq slipped because their largest technology holdings fell, yet the Dow added 86 points, small caps rose, and nine of the eleven sectors finished higher. A midday report that Iran had shot down a US military helicopter sent the averages to their lows before a steady recovery into the close.

Sector Heat Map

Buyers stepped away from the megacap technology winners and spread their money across nearly everything else.

Real estate, materials, health care and industrials led while technology and energy lagged. The rotation favored the groups left behind during the spring AI rally, helped by the slightly easier long end of the bond market.

In the News

Drivers

Wednesday's inflation reading anchors a heavy stretch of catalysts.

1. May inflation report. The consumer price index is the week's main event after April held sticky at 3.8%. The 2-year yield sits at 4.15% and futures still flirt with the odds of a rate increase, so a hot core or energy-driven surprise would harden the hawkish case and lift the long end, while a cooler number would ease the pressure that has weighed on technology. The energy component deserves the closest look after crude's recent slide.

2. Oracle earnings and the AI-spending question. Oracle reports Wednesday after the close, with analysts looking for about $1.96 a share on roughly $19 billion in revenue. The figure that matters most is its cloud-infrastructure backlog, a direct gauge of the AI build-out that the ByteDance custom-chip news just called into question. A strong booking number would steady the chip group, while a shortfall would deepen the doubt that surfaced today.

3. Iran response risk and oil. Trump's pledge to answer the helicopter attack keeps the Strait of Hormuz a live risk into the back half of the week, and an actual strike would reverse oil's slide and revive the energy-driven inflation worry just as the data lands. Europe's central bank also decides Thursday.

SPY daily: Tuesday's dip held above the 50-day line near $716; the 20-day near $745 is the level to reclaim.

Marvell daily: a 7.6% drop lost the 50-day line and erased last week's index-addition pop.

J.M. Smucker daily: a 9% earnings jump pushed the stock back above its moving averages.

Prologis daily: a 3.6% gain cleared the 200-day line as money rotated into real estate.

Rates, FX, Commodities

Government bond yields eased a touch across the curve, a small move that still handed the rate-sensitive corners of the stock market room to rally.

The spread between the 2-year and 10-year notes stood near 38 basis points, a shape that still points to firm policy ahead. The 2-year figure is drawn from CNBC ahead of the Treasury's end-of-day update.

Crude kept falling even with the helicopter incident raising tensions, a sign traders still expect the Iran-Israel truce to hold and are leaning on the extra July barrels OPEC and its partners approved last week. Gold slipped 1.7% as the rush into havens faded, while the dollar sat just below 100 and copper firmed alongside the day's cyclical buying.

Technicals

The broad market is coiling beneath resistance rather than choosing a direction. At 7,386.65, the S&P 500 settled under its 20-day average near 7,460, leaving the 50-day line around 7,165 as first support and the 7,610 record as the level to recapture. The Nasdaq 100 ended at 29,084.50, pushed back below its own 20-day near 29,600 as its chip leaders buckled. Government yields stayed the deciding variable: the 10-year at 4.53% sits just shy of the 4.60% ceiling that has held it for six weeks, and a clean push above there would argue the repricing has further to go, while the 2-year held its lowest mark in roughly a month. The standout move belonged to Qualcomm, which sliced through a multi-week shelf and its 200-day line on heavy volume.

Qualcomm, hourly: Tuesday's gap lower carried the stock through $210 toward $205 before a small bounce.

Breakouts & Breakdowns

Breakouts

Prologis (PLD) — the warehouse landlord cleared its 200-day line near $145 to close at $147.52, up 3.6%, the standout as money rotated into real estate on the easier long end. A hold above $145 keeps the path open toward the $152 area.

American Tower (AMT) — reclaimed the $190 shelf it lost on Monday, finishing at $190.83, up 0.8%, as the cell-tower landlord recovered with the rate-sensitive group. The 50-day near $193 is the next hurdle overhead.

Breakdowns

Qualcomm (QCOM) — lost the $210 floor and its 200-day line on the custom-chip news, closing at $205.42. The $200 round number is the next support, and a break there would open the early-spring lows.

Marvell (MRVL) — surrendered the pop from its recent index addition and slid under its 50-day line near $280, closing at $266.88. The $260 area it touched intraday is the level to hold to avoid a deeper drop.

Top Movers

Gainers

J.M. Smucker (SJM) jumped about 9% to $112.39, the day's standout, after a strong fiscal fourth quarter. The packaged-food maker reported adjusted earnings of $2.77 a share, up 20% and ahead of estimates, on net sales of $2.3 billion, up 6%, with coffee and pet food driving the beat. The stock ran as much as 12% early before easing back, as a soft fiscal 2027 outlook calling for sales to fall 3% to 4% and adjusted earnings of $9.75 to $10.25 a share tempered the enthusiasm. The result gave defensive consumer names a bid on a day built for them.

UnitedHealth (UNH) rose 1.6% to $413.00 and helped lift health care to one of the day's best sector showings. The move had no single headline behind it and read instead as part of the broad rotation into defensive groups that had lagged the spring technology rally, the kind of name that attracts buyers when the market trims its busiest bets.

Losers

Qualcomm (QCOM) fell about 5.7% to $205.42, down as much as 8% near $201 intraday, after reports that ByteDance is moving ahead with its own custom AI chips. The worry is that the largest buyers of mobile and edge processors increasingly design their own silicon, shrinking the market Qualcomm has leaned on to diversify beyond smartphones. The same fear hit the broader custom-silicon group and set the tone for technology trading all session.

Marvell (MRVL) dropped about 7.6% to $266.88, the worst of the large-cap chipmakers, on the same ByteDance report. Marvell's growth story rests heavily on designing custom accelerators for exactly the hyperscale customers now bringing more of that work in-house, so the news cut closer to its core than to most peers. The slide erased the gains the stock booked last week when it was named to the S&P 500.

SailPoint (SAIL) tumbled 11.7% to $15.66 after a weak quarter. The identity-security software firm posted a loss of 13 cents a share against expectations for a small profit, and the miss landed hard on a name priced for steady subscription growth. It was a reminder that software is not immune as buyers scrutinize every renewal.

Intel (INTC) slipped 1.7% to $107.92, giving back part of Monday's 13.8% surge on the Hitachi partnership and foundry optimism. The pullback looked like profit-taking after a sharp two-day run rather than any change to the turnaround story, and the stock is still up roughly 165% in 2026.

Key Macro Data Today

The economic calendar was quiet before Wednesday's main event. Small-business confidence fell 0.6 point in May to 95.3, under both the 96.0 economists expected and the survey's long-run average near 98. The group's uncertainty gauge climbed to 91, and plans to hire and to fill open roles sank to their lowest since 2020, with owners pointing to unpredictable fuel costs and the war. April wholesale inventories, out later in the day, passed with little notice.

Notable Earnings This Session

Two reports framed the session, a food maker before the bell and a convenience-store operator after the close.

Pre-Open

J.M. Smucker was the standout before the open, climbing on its fourth-quarter beat. SailPoint posted a fiscal first-quarter loss that sent its shares sharply lower.

Post-Close

Casey's General Stores (CASY) finished the regular session at $761.18, up 1.2%, then crossed the wire with a large beat after the bell. The convenience-store chain earned $4.37 a diluted share for its fiscal fourth quarter, up 66% from a year earlier and well above the roughly $3.35 analysts expected, as net income rose 65% to $162.7 million and inside same-store sales grew 5.5%. Oracle (ORCL) reports Wednesday after the close.

What Drove the Tape

Tuesday was a rotation more than a retreat. The cap-weighted S&P 500 and the Nasdaq fell because their heaviest technology holdings dropped, but underneath the surface the market broadened, with the Dow higher, small caps up, and most sectors green. The sore spot was semiconductors: a report that ByteDance is building its own AI chips knocked Qualcomm down almost 6% and Marvell more than 7%, dragging the whole technology sector to the bottom of the table. A midday headline that Iran had shot down a US Army helicopter over the Strait of Hormuz, and President Trump's vow to respond, pushed stocks to their session lows before a steady recovery erased much of the drop. Crude fell anyway, with West Texas Intermediate sliding below $90, as traders bet the Iran-Israel truce would hold despite the new flashpoint. By the close, the session looked like investors paring their busiest positions and waiting for Wednesday's inflation reading.