US: S&P 500 edges to fresh record

THE S&P 500 nudged to a record close on Tuesday following a choppy session as markets weighed higher Treasury bond yields, while chip company Intel surged on reported takeover interest.

The uptick in Treasury yields reflects greater doubt that the Federal Reserve will soon cut interest rates again, a headwind for equities.

Still, the broad-based S&P 500 veered in and out of negative territory before finishing at 6,129.58, up 0.2 per cent, narrowly topping its earlier record.

The Dow Jones Industrial Average was flat at 44,556.34, while the tech-rich Nasdaq Composite Index edged up 0.1 per cent to 20,041.26.

Stocks took a leg lower following an announcement from the Federal Trade Commission and the Justice Department that they plan to maintain the Biden administration’s guidelines on mergers and acquisitions.

Markets have been anticipating a reprieve from the approach of the Biden rules. UnitedHealth Group, which has a pending deal with Amedisys, fell 4.4 per cent.

But Intel surged 16.1 per cent following a Wall Street Journal report that rivals Broadcom and Taiwan Semiconductor Manufacturing Co were considering bids to purchase key assets from the chip company.

Nike was another big winner, gaining 6.2 per cent as it announced a joint venture with Kim Kardashian under the NikeSKIMS brand.

Southwest Airlines dipped 0.9 per cent after announcing plans to trim 15 per cent of its corporate workforce, or about 1,750 jobs in a reorganisation plan.

Homebuilder stocks retreated following a survey that showed industry sentiment fell sharply in February due to worry about tariffs. PulteGroup, Toll Brothers and KB Home fell between one and two per cent. AFP