The S&P 500 (+0.6%), Nasdaq Composite (+1.2%), and DJIA (-0.2%) posted a mostly higher start to the holiday-abbreviated week, with the S&P 500 notching fresh record highs.

The market was supported by another rally across semiconductor names, pushing the PHLX Semiconductor Index 5.5% higher and helping the broader information technology sector (+1.7%) finish as the top-performing S&P 500 sector.

Micron (MU 895.88, +144.88, +19.29%) posted a massive gain, surpassing a $1 trillion market capitalization after UBS raised its price target on the stock to $1,625 from $535 and reiterated its Buy rating.

Advanced Micro Devices (AMD 503.89, +36.38, +7.78%) and onsemi (ON 126.98, +10.78, +9.28%) were among the other notable chipmakers trading sharply higher, though NVIDIA (NVDA 214.86, -0.47, -0.22%) continued to struggle to hold intraday gains following last week's earnings release.

In addition to strong tech leadership, the market benefited from a more favorable macro backdrop today, with oil prices and Treasury yields both retreating amid reports that the U.S. and Iran made progress on negotiations over the weekend. Crude oil futures settled today's session $2.86 lower (-3.0%) at $93.89 per barrel, and the 10-year note yield settled down seven basis points to 4.49%.

Airline names such as United Airlines (UAL 105.92, +5.96, +5.96%) moved higher amid the retreat in oil prices, helping the industrials sector (+1.5%) outperform.

Similarly, construction materials names, including Martin Marietta (MLM 560.93, +24.45, +4.56%), were among the top performers in the materials sector (+1.4%).

The communication services sector (+0.9%) also notched a solid gain as Alphabet (GOOG 384.84, +5.46, +1.44%) rebounded from a recent bout of weakness, while gains were more modest elsewhere.

As for today's laggards, the energy sector (-2.8%) was the worst performer given the slide in oil prices, while the defensive consumer staples (-1.7%) and health care (-1.0%) sectors moved lower as investors favored more growth-oriented areas of the market.

AutoZone (AZO 3100.11, -306.39, -8.99%) finished as the worst-performing S&P 500 component after delivering a mixed Q3 earnings report, with a sizable EPS beat offset by slightly light revenue and meaningful gross margin pressure tied to inflation-related accounting impacts. Even so, the consumer discretionary sector (+0.1%) managed to finish modestly higher as Tesla (TSLA 433.48, +7.47, +1.75%) provided solid mega-cap leadership while cruise line stocks outperformed in typical fashion amid falling oil prices.

Outside of the S&P 500, the Russell 2000 (+1.8%) and S&P Mid Cap 400 (+1.5%) outperformed as lower Treasury yields continued to support smaller-cap and more economically sensitive areas of the market.

Overall, today's session reflected continued enthusiasm across semiconductor and AI-linked stocks, while easing pressure from oil prices and Treasury yields provided additional support for broader market participation. Even with some mixed action beneath the surface, investors remained willing to rotate into cyclical and growth-oriented groups as the S&P 500 continued its push into record territory.

U.S. Treasuries began the holiday-shortened week on a firmly higher note, encouraged by a pullback in the price of oil, which resulted from more indications that a peace deal with Iran is likely be finalized soon. The U.S. Treasury sold $69 billion in 2-year notes to good demand. The 2-year note yield settled down seven basis point to 4.05%, and the 10-year note yield settled down seven basis points to 4.49%. 

• Russell 2000: +17.7% YTD
• Nasdaq Composite: +14.7% YTD
• S&P Mid Cap 400: +12.8% YTD
• S&P 500: +9.8% YTD
• DJIA: +5.0% YTD

Reviewing today's data:

• The Conference Board's Consumer Confidence Index slipped to 93.1 in May (Briefing.com consensus: 92.0) from an upwardly revised 93.8 (from 92.8) in April. In the same period a year ago, the index stood at 98.4.
  
  • The key takeaway from the report is that inflation pressures had consumers feeling less optimistic about current conditions; however, those same pressures did not squash expectations for better conditions six months from now.
• April S&P Case-Shiller Home Price Index increased 0.8% (Briefing.com consensus 1.0%) following a previous increase of 0.9%.
  The March FHFA Housing Price Index increased 0.1% (Briefing.com consensus 0.1%), with the prior reading revised to -0.1% (from 0.0%).