Index Extends Gains as Tech Stocks Surge

The S&P 500 climbed 0.7% on Tuesday, bringing the index into positive territory for the year as investors reacted to positive data on inflation and tech stocks surged, extending Monday’s gains on easing trade tensions.

The tech-heavy Nasdaq rose 1.6%, while the Dow Jones Industrial Average finished 0.6% lower, weighed down by the poor performance of constituent UnitedHealth Group (UNH).

Shares of First Solar (FSLR) surged nearly 23% to lead the S&P 500 higher after Wolfe Research upgraded the stock to “outperform” and raised its price target to $221, pointing to the company’s strength in the U.S. market. Wolfe Research said that tax legislation under consideration in the House of Representatives doesn’t cut solar panel taxpayer subsidies as much as had been feared, while also raising restrictions on Chinese-made solar panels, which could help the American firm. 

Super Micro Computer (SMCI) shares jumped 16% after Raymond James initiated coverage of the server maker’s stock with an “outperform” rating and $41 price target. Supermicro has “emerged as a market leader in AI-optimized infrastructure,” Raymond James analysts told clients. The bullish rating comes after several analysts cut their price targets for the tech firm after it lowered its sales outlook.

Palantir (PLTR) shares added more than 8% to close at an all-time high just above $128. Yesterday, Bank of America analysts raised their price target for the stock to $150, calling Palantir a “market definer” for companies looking to leverage AI.

Shares of Nvidia (NVDA) climbed close to 6% after it said it would supply semiconductors to Saudi Arabian AI startup Humain, as part of initiatives announced as President Donald Trump kicked off a four-day trip to the Middle East.

UnitedHealth Group’s stock plummeted nearly 18%, making it the S&P 500’s worst performer Tuesday after the company said its CEO was departing and that it would suspend issuing its 2025 outlook. CEO Andrew Witty is stepping down for “personal reasons,” the health insurer said. Former CEO and current board chair Stephen Hemsley was appointed as his replacement, taking the role immediately. The company also said it wouldn’t issue forecasts as the medical costs of Medicare Advantage beneficiaries “remained higher than expected.”

This article has been updated since it was first published to include additional information.