Closing Bell: AI-Led Rally Pushes Indexes Higher

The market Tuesday continued to shrug off geopolitical risk and instead focus on AI and space themes to support risk-on sentiment.

The S&P 500 gained 0.61% and the Nasdaq 100 rose 1.76%, while the Russell 2000 outperformed with a 1.79% advance. Information Technology, Industrials, and Materials led sector gains, while Energy and Consumer Staples lagged.

Micron Market Cap Tops $1 trillion

Shares of Micron (MU) spiked 19% to $895.88, an all-time high, after UBS raised its price target to $1,625 from $535. In the upgrade, UBS maintained its Buy rating and cited Micron’s long-term memory supply agreements that it expects to lock in pricing and improve demand visibility. This supports significantly higher earnings and free cash flow forecasts through 2029, UBS said, with AI-driven structural changes enhancing the durability and stability of the memory market. Micron’s stock advance put its market cap above $1 trillion.

Lilly’s $3.8B Vaccine Deal Signals Infectious Disease Push

Eli Lilly (LLY) announced Tuesday that it is acquiring Curevo, LimmaTech Biologics, and Vaccine Company in a combined deal worth up to $3.8 billion, signaling a renewed push into infectious disease prevention after years of limited focus on the space. Lilly’s cash flow from its GLP-1 and obesity drugs has supported an M&A strategy this year that expands its pipeline beyond metabolic therapies. Lilly shares rose modestly Tuesday.

Economic Events for Tomorrow (ET)

4:00am: FOMC Member Logan Speaks

8:15am: ADP Employment Change

10:00am: Richmond Manufacturing Index

3:55pm: FOMC Member Cook Speaks

4:30pm: API Weekly Statistical Bulletin

8:00pm: FOMC Member Jefferson Speaks

10:25pm: FOMC Member Goolsbee Speaks

Earnings Calendar

Before Market Open: PDD, DKS, BBWI, CPRI, MOV

After Market Close: MRVL, CRM, SNOW, A, AMSC

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