Nasdaq, S&P 500 Close at Record Highs as Micron Surges on UBS Target Hike

The Nasdaq Composite and the S&P 500 closed at record highs in New York after Micron Technology led a rally in semiconductor shares on the back of an aggressive price-target increase from UBS.

On May 26, the S&P 500 rose 45.65 points, or 0.61%, to 7,519.12, while the Nasdaq gained 312.21 points, or 1.19%, to 26,656.18. Both indexes finished at record closing highs.

The Dow Jones Industrial Average, however, fell 118.02 points, or 0.23%, to 50,461.68 as uncertainty surrounding U.S.-Iran ceasefire talks intensified again.

Micron jumped 19.29%, lifting its market capitalization above $1 trillion. UBS tripled its price target on the company, boosting investor sentiment. In a report, the bank said the market appeared set to assign Micron a more "normal" valuation multiple and that the re-rating would continue as the details of the structural changes AI has brought to the memory industry become clearer.

Micron's rally also sent storage shares such as Western Digital and SanDisk sharply higher.

Advanced Micro Devices climbed 7.78% after news that a new product had entered mass production.

The Philadelphia Semiconductor Index surged 5.53%.

Nvidia, however, ended slightly lower as investors continued to lock in profits after the company's earnings report.

Oil prices rebounded after the U.S. stepped up pressure on ceasefire talks with Iran through airstrikes targeting the country.

U.S. Central Command said a day earlier that it had struck several targets in southern Iran near the Strait of Hormuz in self-defense, targeting Iranian vessels attempting to lay mines and missile launchers.

Brent crude for July delivery settled at $99.58 a barrel on ICE Futures Europe, up 3.6% from the previous session.

Secretary of State Marco Rubio told reporters in Jaipur, India, that there appeared to be considerable back-and-forth over the specific wording of an initial draft agreement for ceasefire talks with Iran. He added that the process would probably take a few days.

Han Kyung-woo, Hankyung.com reporter case@hankyung.com