The S&P 500 gained 0.82% to close at 7,259.47 points and the Nasdaq Composite jumped 1.03% to 25,326.51, reaching a record high on Tuesday, while the Dow Jones Industrial Average rose 0.73% to 49,296.75. According to The Economic Times, the Philadelphia SE Semiconductor index jumped 4.7% to a record high, driven by strong performance in AI-related chip stocks. With Tuesday's rally, the Nasdaq is up 9% in 2026, demonstrating continued momentum in technology stocks. Diamondback Energy (NASDAQ:FANG) reached a new 52-week high of $214.51 after announcing better-than-expected quarterly earnings, with the stock last trading at $213.69.
Intel surged 14% after Bloomberg News reported that Apple had held exploratory discussions about enlisting the company's chipmaking services to produce the main processors for its devices. As reported by Reuters, chip designer AMD rallied 4.4% ahead of its quarterly report after the bell, with analysts expecting a 33% surge in revenue. The strong performance in AI-related companies was supported by optimism around strong quarterly earnings and continued business spending on AI and productivity tools. Recent developments show Intel's strategic M&A execution with U.S. antitrust authorities clearing its investment in AI chip developer SambaNova Systems, removing a major regulatory overhang and deepening Intel's integration with SambaNova's Reconfigurable Data Unit architecture.
Diamondback Energy (NASDAQ:FANG) reported $4.23 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.74 by $0.49. The oil and natural gas company also posted revenue of $4.24 billion for the quarter, compared to the consensus estimate of $3.83 billion. The company achieved a return on equity of 8.08% and net margin of 11.07%, with quarterly revenue up 4.7% year-over-year. S&P 500 companies are on track to post aggregate earnings growth of 28% year-over-year for the first quarter, according to LSEG I/B/E/S, representing the strongest quarterly profit growth since 2021. According to The Economic Times, Wall Street's AI heavyweights account for much of that optimism, with investors focusing on robust corporate profits.
Grain trader Archer-Daniels-Midland rose 1.2% after reporting better-than-expected first-quarter profit on higher margins. As reported by Reuters, DuPont gained 7.6% after the industrial materials maker lifted its annual profit forecast. Shares of Pinterest soared 9.3% after the image-sharing platform forecast second-quarter revenue above analysts' estimates. Nine of the 11 main S&P 500 sector indexes rose, led by a nearly 2% gain in materials. Advancing issues outnumbered decliners by a 2.63-to-1 ratio on the NYSE, with 432 new highs and 77 new lows on the exchange.
According to The Economic Times, U.S. job openings fell to 6.866 million in March, slightly above the 6.835 million estimate, reinforcing the view that labor market resilience could give the central bank room to keep interest rates higher for longer. The Institute for Supply Management's Non-Manufacturing Purchasing Managers' Index for April came in at 53.6, narrowly missing the estimate of 53.7. Market analysts note that five research analysts have rated Diamondback Energy with a Strong Buy rating, eighteen have assigned a Buy rating and four have given a Hold rating to the stock, with a consensus rating of "Buy" and consensus target price of $208.05. As reported by The Economic Times, Brent crude futures fell but still traded at $110 a barrel.
