NEW YORK, May 26 (Xinhua) -- U.S. stocks ended mixed on Tuesday, with the benchmark S&P 500 securing a new all-time high as a historic rally in the memory chip sector offset lingering anxieties regarding global monetary tightening.
The S&P 500 added 45.65 points, or 0.61 percent, to finish at a record close of 7,519.12. The tech-heavy Nasdaq Composite Index increased by 312.21 points, or 1.19 percent, to a new record high of 26,656.18. Conversely, the blue-chip Dow Jones Industrial Average dropped 118.02 points, or 0.23 percent, to close at 50,461.68.
Performance among the 11 primary S&P 500 sectors was divided, with six finishing in the green. Technology and industrials paced the advancing groups, climbing 1.69 percent and 1.48 percent, respectively. In contrast, energy and consumer staples led the decliners, sliding 2.8 percent and 1.74 percent, respectively.
The session featured an explosive advance in the semiconductor sector, spearheaded by Micron Technology. Shares of the memory chip manufacturer jumped more than 19 percent, pushing its total valuation above the historic 1-trillion-U.S.-dollar market capitalization threshold.
The massive surge followed an exceptionally bullish research note from UBS, which projected more than 100 percent additional upside for the equity, citing highly lucrative, long-term supply agreements for artificial intelligence infrastructure hardware. The momentum lifted the broader storage industry, with Seagate Technology advancing 4.06 percent, Western Digital gaining 8.34 percent, and the specialized Roundhill Memory ETF skyrocketing more than 14 percent to an all-time peak.
While geopolitical concerns were partly alleviated by comments from U.S. President Donald Trump indicating that diplomatic negotiations with Iran are "moving along well," yet stocks remained higher after the United States and Iran exchanged fire in the Strait of Hormuz.
West Texas Intermediate crude for July delivery dropped 2.81 percent to settle at 93.89 dollars a barrel on the New York Mercantile Exchange. Meanwhile, Brent crude for July delivery rose 3.58 percent to close at 99.58 dollars a barrel on the London ICE Futures Exchange.
The persistence of higher energy inputs has significantly modified market assumptions regarding upcoming Fed policy actions. U.S. consumer confidence declined slightly in May as persistently high gasoline prices and elevated inflation continued to strain household budgets, standing in sharp contrast to soaring domestic stock prices that made new record highs.
Traders are now pricing in roughly an 11-percent chance of a rate hike in July, up from 0.9 percent a month ago, according to the CME Group's FedWatch tool.
