The Nasdaq Composite closed at a record level on Tuesday, as Nvidia's ascent lifted the technology-heavy index in an otherwise lackluster trading day.

The Nasdaq advanced 0.59% to 17,019.88, eclipsing the 17,000 level for the first time ever. The index was buoyed by Nvidia's jump of more than 7%.

The S&P 500 inched up just 0.02% to 5,306.04. The Dow Jones Industrial Average slipped 0.55%, or 216.73 points, to end at 38,852.86.

While Nvidia's rally disguised troubles in the broader market, the blue-chip Dow was weighed down by a drop in Merck and other health names. Meanwhile, more than 350 stocks in the broad S&P 500 were negative in the session. The index's health care, industrials and financials sectors all finished more than 1% in the red.

A government auction of Treasurys that was met with weak demand sent the rate on the 10-year note back above the key 4.5% level. Stocks have struggled recently when the benchmark rate tops that mark. Stocks briefly fell to their session lows as yields rose, with the Dow falling more than 300 points before recovering.

Also on Tuesday, Minneapolis Federal Reserve President Neel Kashkari said he wants to see "many more months" of data pointing to easing inflation before cutting rates. He also said he would not rule out further rate hikes if price pressures tick up again.

Tuesday's moves come near the end of a strong month, with all three major indexes posting fresh record levels in May. Softer inflation data earlier this month and better-than-expected quarterly earnings reports lifted sentiment, with the former suggesting interest rate cuts could come earlier than investors had anticipated. In May, the Dow has added 2.7%, while the S&P 500 and Nasdaq have climbed more than 5% and 8%, respectively.

"We could see a little bit of choppiness this week" coming off the long weekend, said Larry Tentarelli, founder of the Blue Chip Daily Trend Report. "But overall, I think the market is bullish."

Looking ahead, investors are gearing up for the personal income and expenditures report, which includes the PCE inflation reading, for April out Friday.

Nasdaq Composite closes at all-time high while Dow pulls back

The Nasdaq Composite finished Tuesday at a record high while the Dow slipped.

The tech-heavy Nasdaq finished 0.6% higher, above the 17,000 level for the first time. On the other hand, the blue-chip Dow fell more than 200 points, or about 0.6%. Meanwhile, the S&P 500 ended marginally above flat.

— Alex Harring

Bitfarms soars after Riot Platforms proposes to acquire the bitcoin miner

Bitcoin miner Bitfarms saw a jump in its shares Tuesday after Riot Platforms, the largest publicly listed bitcoin mining firm, submitted a proposal to acquire it.

Bitfarms gained 7% in afternoon trading, while Riot's stock was little changed.

Riot proposed to acquire all of Bitfarms' outstanding shares for $2.30 per share. It also announced that it has taken a 9.25% stake in the company, making it its largest shareholder.

The proposal comes after CleanSpark expanded its mining operations with the acquisition of two Wyoming data center sites. The crypto industry is expecting consolidation among bitcoin miners — particularly those that are smaller, have higher costs or older and less-efficient hardware — after rewards were cut in half in the April Bitcoin halving.

— Tanaya Macheel

The S&P 500 appears fairly valued, RBC Capital Markets says

It may be time to take a more neutral stance now that stocks have reached record highs, according to RBC Capital Markets. In fact, the Wall Street firm worries the bias for equities may be to the downside if the currently held view on markets and the economy proves overly optimistic.

"Our S&P 500 valuation model continues to suggest that the broader US equity market is fairly valued, with some modest downside risk if current inflation, interest rate, and Fed assumptions end up being too rosy," Lori Calvasina wrote Tuesday.

"For a material move higher in the market by year end to be justified on the math, we think investors will need to start focusing on the outlook for 2025, where visibility still seems a bit limited," Calvasina added.

— Sarah Min

Vaccine stocks pull back after bird flu worries stoke strong monthly gains

Health-care stocks were lower in trading Tuesday, but those that develop vaccines logged particularly deep losses. The pullback follows an exceptionally strong month for the group, which has been buoyed up by concerns over the spread of avian influenza, commonly known as "bird flu." The virus H5N1 has moved from birds, including poultry, to dairy herds in the U.S. Also, the Centers for Disease Control and Prevention has confirmed two humans have been infected by cattle in Texas and Michigan.

"The transmission through mammals is significant because it raises concerns about the potential for increased spread and adaptation of the virus," wrote TD Cowen analyst Tristan Margot in a research note. "Mammalian transmission could lead to more efficient human-to-human spread, potentially resulting in widespread outbreaks or even pandemic."

TD Cowen's note highlighted efforts Pfizer and GSK have made to develop H5N1 vaccines. Both stocks were down about 2% in trading, trimming Pfizer's monthly gains to about 10% and GSK's to about 7%.

Moderna shares were down nearly 10% on Tuesday, but the stock has still rallied more than 36% since the start of May. BioNTech slipped 4%, but the stock is still up nearly 5% month to date.

Novavax shares tumbled 8% intraday, but the stock has more than tripled this month. CureVac shares fell 7% on the day, but have gained about 36% so far this month.

— Christina Cheddar Berk

Oppenheimer's John Stoltzfus eyes utilities, sticks by favorite sectors including technology and consumer discretionary

Oppenheimer Asset Management chief investment strategist John Stoltzfus is growing more bullish on utilities while sticking by his previous top picks.

Stoltzfus told CNBC's "Squawk on the Street" on Tuesday that his firm upgraded the utilities sector to market perform from underperform. The strategist also listed his favorite sectors as technology, consumer discretionary, industrials, communication services and financials.

"This is the year we're going to see some spending of all of that money that's been allocated to the infrastructure buildout," Stoltzfus said of utilities.

— Brian Evans

JPMorgan lowers Boeing estimates on fewer 737 deliveries amid China tensions

JPMorgan has lowered its estimates for Boeing's free cash flow on deliveries of 737s and 787s in the near term.

The investment bank sees $4 billion in outflows for Boeing in the second quarter, slightly worse than the previous quarter, and $2.3 billion in outflows for 2024.

Boeing has been unable to deliver aircraft to China as regulators there ostensibly review batteries for cockpit voice recorders, though JPMorgan sees geopolitical issues possibly at play.

The investment bank estimates Boeing has more than 60 inventoried 737s for customers in China, which represents a $1 billion risk to the company's free cash flow this year.

"Bigger picture, Boeings vulnerability to US-China tensions is less than ideal, especially ahead of what is likely to be a high-drama US election this fall," analysts led by Seth Seifman told clients in a note.

Still, JPMorgan has maintained its price target for Boeing of $210, implying 20% upside from the company's most recent closing price.

"Despite the ~$4b cash outflow now expected for Q2, Boeings recent debt raise leaves the company with plenty of cash," the analysts said.

— Spencer Kimball

Raging supercore inflation means investors can't rule out rate hikes this year, says chief economist

Although goods inflation has come down in recent times, Torsten Slok believes investors need to be more wary of resilient supercore inflation.

The chief economist of Apollo Global Management noted that supercore inflation, which excludes food, energy and housing prices, has started to reaccelerate due to tailwinds in the service sector. This uptick in inflation, combined with a strong housing outlook, could provide a damper for investors expecting the Federal Reserve to cut rates this year.

"Housing is maybe a little bit more challenging to control for the Fed, but what they can control is broader consumption. That is still quite strong, and that is the challenge for the Fed as we look ahead," he told CNBC's "Squawk on the Street" on Tuesday.

While Slok does not outright expect rate hikes this year, he agreed with Minneapolis Fed President Neel Kashkari's assessment that investors could not necessarily rule them out.

— Lisa Kailai Han

Top five stocks account for 27% of S&P 500, Strategas says

Even as some often overlooked sectors such as utilities have gained steam recently, the S&P 500 is still dominated by just a handful of stocks.

The weight of the five biggest stocks in the S&P 500 appears to be at its highest level since at least 1980, according to Strategas ETF strategist Todd Sohn.

"NVDA's persistent strength has resulted in two important stats: a new high for the 5 largest S&P 500 weights to over 27% (highest in the 44-years of data we have), and a new high for the overall Semiconductors influence too (over 11%, up from 2% a decade ago!)," Sohn said in a note to clients Tuesday.

— Jesse Pound

Evercore ISI's Mahaney hikes Netflix price target

Evercore ISI hiked its price target on Netflix to $700 from $650 on Tuesday after its own survey showed a bullish trend at the streamer.

"Netflix is in the strongest position financially, fundamentally and competitively that we have ever seen," the firm's analyst Mark Mahaney said in a note. "And we see with Live Events and Gaming two very promising long-term greenfield revenue opportunities."

Still, the analyst noted that he believes Netflix is only a "small buy" from here given its strong rally recently. The stock is up more than 32% in 2024.

— Yun Li

S&P 500 wavers on Tuesday

The S&P 500 was hindered on Tuesday by four sectors down more than 1% each: health care, industrials, financials and consumer staples. That mitigated the gain of more than 1% seen in information technology, which was the best performer of the 11 that comprise the broad index.

As a whole, the index has flickered around its flatline for much of the session. By comparison, the Dow has fallen more than 0.7%, while the Nasdaq Composite has climbed around 0.5%.

— Alex Harring

Nvidia, Broadcom power Nasdaq to above 17,000

The Nasdaq Composite traded above 17,000 for the first time Tuesday. The tech-heavy index first closed above 16,000 on Nov. 19, 2021. Since then, it has gained nearly 6%.

Chipmaking giant Nvidia's 239.2% blockbuster rally since Nov. 19, 2021, has led the index's gains. Broadcom and Vertex Pharmaceuticals are the following biggest gainers since the index hit 16,000, with both stocks rising around 145%.

— Hakyung Kim, Gina Francolla

Med tech stock Semler Scientific takes bitcoin play from MicroStrategy's book, surges 30%

Semler Scientific, a little-known medical technology company, saw its shares surge on Tuesday after it said it has adopted bitcoin as its primary treasury reserve asset, taking a page out of MicroStrategy's playbook.

The company, which develops products used in the detection of peripheral arterial disease, also announced a purchase of 581 bitcoins for about $40 million, inclusive of fees and expenses.

The stock soared 30% Tuesday, while bitcoin traded lower by about 2%, according to Coin Metrics. Semler, which has a market capitalization of about $210 million, is down more than 30% this year.

"Our bitcoin treasury strategy and purchase of bitcoin underscore our belief that bitcoin is a reliable store of value and a compelling investment," Eric Semler, Semler Scientific's chairman, said in a statement.

For more, read our full story here.

— Tanaya Macheel

Gambling stocks slide on Illinois sports-betting tax hike

Shares of DraftKings and FanDuel parent Flutter Entertainment took a hit on Tuesday after Illinois senators approved a 2025 budget that would raise the state's taxes on sports betting, and also implement a progressive tax rate for sports-betting operators based on their revenue.

DraftKings shares fell about 13%, while Flutter Entertainment shed 7% during midday trading. This quarter, DraftKings has lost a whopping 21%, leaving the stock up 1.9% for the year. Meanwhile, Flutter Entertainment is up 7.4% this year.

Oppenheimer analyst Jed Kelly wrote in a Tuesday note that the state's tax would likely have the companies paying a mid to high 30% effective tax rate, significantly higher than the current rate of about 15%. The analysts expect the measure to pass the State Assembly and become effective July 1.

— Pia Singh

Dallas Fed survey shows business conditions worsened in May

Business activity in May slowed more than expected in Texas, a Dallas Federal Reserve survey showed Tuesday.

The central bank's business activity index fell to -19.4 on the month, down 5 points from April and worse than the Dow Jones estimate for -15. The gauge is the difference between companies reporting expansion against contraction.

Inflation pressures persisted, with the index for prices paid rising sharply, though the prices received measure edged lower. The employment measure also worsened, falling to -5.3.

— Jeff Cox

Four health-care stocks drag down Dow Industrials by more than 100 points Tuesday

The four health care-related stocks in the 30-stock Dow Jones Industrial Average are by themselves dragging down the average by more 100 points in late-morning trading Tuesday.

Amgen is lower by some $6.11, good for 40 points off the Dow. UnitedHealth is off about $5.10, or 34 points. Merck is falling $3.30, slicing 22 points from the Dow. Johnson & Johnson retreated some $1.80, or about 12 Dow points.

The four are among the seven leading contributors to the Dow's decline Tuesday, a day when the Dow Industrials are notably underperforming both the Nasdaq Composite and, to a lesser extent, the S&P 500.

— Scott Schnipper

Wall Street switches to one-day settlement for stock trades

Stock trades in the U.S. are now settling faster than before.

Tuesday is the first day that stocks will operate on a T+1 settlement timeline. That means shares and money must be delivered for the trade by the end of the next business day.

"For everyday investors who sell their stock on a Monday, shortening the settlement cycle will allow them to get their money on Tuesday. Shortening the settlement cycle also will help the markets because time is money and time is risk. It will make our market plumbing more resilient, timely, and orderly," SEC Chair Gary Gensler said in a statement last week.

The change, which comes after the GameStop mania in 2021 put the settlement process under public scrutiny, is not expected to cause disruptions for most retail traders, as brokerage firms generally handle the settlement process for customers.

— Jesse Pound

Bill Gross sees bonds faring worse under a Trump presidency

Veteran bond investor Bill Gross thinks fixed income would fare worse under a Donald Trump presidency because of the Republican's penchant for lower taxes and higher spending.

"Trump is the more bearish of the candidates simply because his programs advocate continued tax cuts and more expensive things," the Pimco co-founder told the Financial Times in a wide-ranging interview.

Gross added that Trump's candidacy would be more "disruptive" for markets, and he advised investors to "temper" their outlook for stock market returns regardless of the candidate. "Over time, the markets should mean revert. To me, that means prices going up less than they have," he said.

Debt and deficits expanded under both President Joe Biden and Trump, the latter exacerbated by the huge spending package passed in the early days of the Covid-19 pandemic. Bonds broadly rose about 10% during Trump's presidency while contracting 18% under Biden, as measured by the iShares Core U.S. Aggregate Bond ETF.

— Jeff Cox

Nasdaq eclipses 17,000 for first time

The Nasdaq Composite touched a new record in Tuesday's session. At one point, the tech-heavy index surpassed the 17,000 mark for the first time ever.

It comes near the end of a strong month, with the index rising more than 8% so far in May.

— Alex Harring

Consumer confidence, inflation outlook both on the rise

Consumer confidence unexpectedly increased in May, though so did inflation expectations, according to a Conference Board survey released Tuesday.

The board's Present Situation Index increased to 102 from an upwardly revised 97.5, better than the 96 estimate from the Dow Jones consensus. Similarly, the Expectations Index increased to 74.6, up nearly 6 points.

However, the 12-month inflation outlook edged higher to 5.4%, and shares of those expecting higher interest rates increased a full point to 56.2%.

— Jeff Cox

S&P 500 opens modestly higher

The S&P 500 was up slightly as the shortened trading week kicked off.

The broad index added just 0.2% shortly after 9:30 a.m. ET. The Nasdaq Composite climbed 0.5%, while the Dow slipped 0.3%.

— Alex Harring

Silver heads for best month since 2020

Silver is on track for its best month in nearly four years.

The metal has climbed nearly 20% so far in May, putting it on track for its third straight positive month. That gain would also mark its best monthly performance since July 2020, when silver jumped slightly below 30%.

The Global X Silver Miners ETF (SIL) popped more than 3% in Tuesday premarket trading.

— Alex Harring, Gina Francolla

Apple rises following April data indicating recovery in China

Apple shares added nearly 2% in Tuesday premarket trading following data that reflected a rebound in China.

iPhone shipments in China jumped about 52% in April from a year ago, according to data analyzed by UBS. But the firm warned that these figures can be "volatile," and sad investors should not jump to the conclusion that a regional turnaround is happening because of this month's stats alone.

Bloomberg News first reported on the data.

— Alex Harring

Stocks making the biggest moves premarket

These are some of the companies making headlines before the bell:

• GameStop — Shares surged nearly 27% following the company's announcement on Friday that it had made around $933.4 million from a stock sale. The company sold 45 million common shares. 
• Nvidia — The chipmaker jumped 3% premarket, continuing its postearnings rally after its quarterly earnings report last Wednesday. Shares soared 15% last week, breaking above $1,000 for the first time.
• Norwegian Cruise Line Holdings — The cruise stock rose 3% following an upgrade to buy from neutral at Mizuho. The investment firm said Norwegian could benefit from a shift in opinion after being a target of short sellers in recent years.

The full list can be found here.

— Hakyung Kim

T-Mobile to acquire most of U.S. Cellular for $4.4 billion

T-Mobile announced Tuesday it struck a deal to acquire U.S. Cellular's wireless operations and 30% of spectrum assets for $4.4 billion. The agreement includes a combination of cash and up to about $2 billion in unassumed debt. T-Mobile will also enter into a new licensing agreement on more than 2,000 towers.

The deal is expected to close in mid-2025. Shares of U.S. Cellular popped 7% in market trading, while T-Mobile was down less than 1%.

— Michelle Fox

Stocks come off mixed week

The three major averages saw varied performance last week.

The technology-heavy Nasdaq Composite gained about 1.4%, while the blue-chip Dow shed around 2.3% for its first losing week in five. Meanwhile, the S&P 500 finished marginally above flat.

— Alex Harring

GameStop shares pop in the premarket

GameStop shares were up more than 20% in the premarket after the company announced Friday that it made $933 million from a stock sale. The company sold 45 million common shares.

The video game retailer has been on fire this month amid a meme stock craze resurgence, soaring 71.3%. However, it pulled back 14.5% last week.

— Fred Imbert

'Many more months' of positive data needed before rate cuts, Fed's Kashkari says

Minneapolis Federal Reserve President Neel Kashkari told CNBC on Tuesday he is still not ready to cut interest rates.

"Many more months of positive inflation data, I think, to give me confidence that it's appropriate to dial back," he said. He also noted the central bank could raise rates if inflation does not continue to ease. "I don't think we should rule anything out at this point."

— Fred Imbert

Nvidia shares rise in the premarket

Nvidia shares were up more than 2% in the premarket, putting the tech giant on track to build on its postearnings rally from last week. The stock surged 15% to record highs last week after reporting blockbuster quarterly results.

— Fred Imbert

European markets open mixed

European markets opened mixed Tuesday as momentum returned after a quiet previous session.

The FTSE 100 was down 0.15% in early deals, while France's CAC fell 0.14%. The German DAX, meanwhile, was up 0.23% and Italy's FTSE MIB was 0.2% higher.

— Karen Gilchrist

India's Adani Group is reportedly in talks to expand into e-commerce and payments space

India's Adani Group is in talks to expand into the country's e-commerce and payments space, the Financial Times reported Tuesday, citing four people familiar with the matter.

It will be competing with the likes of Google in the payments space and India's Reliance Industries on the e-commerce front, as the ports-to-retail conglomerate expands its operations in the world's most populous country.

The Financial Times reported Adani could apply for a license to operate on India's public digital payments platform, Unified Payments Interface, or UPI, and is also in talks with banks to finalize previously announced plans for a co-branded Adani credit card.

Adani is also in negotiations to offer online shopping through an Indian government-backed public e-commerce platform, Open Network for Digital Commerce, the Financial Times reported.

Separately, Adani is set to kick off several roadshows this week to raise up to $4 billion through equity and refinancing of older debt, Business Standard reported, citing banking sources.

— Shreyashi Sanyal, Financial Times

Australian retail sales tick higher in April but miss expectations

Data from the Australian Bureau of Statistics said retail turnover rose 0.1% month on month in April on a seasonally adjusted basis.

The reading was below a Reuters poll estimate of a 0.2% rise. Retail sales in April rose 1.3% from a year earlier.

"Underlying retail spending continues to be weak with a small rise in turnover in April not enough to make up for a fall in March," said Ben Dorber, head of retail statistics at the Australian Bureau of Statistics.

"Since the start of 2024, trend retail turnover has been flat as cautious consumers reduce their discretionary spending," Dorber added.

— Shreyashi Sanyal

Japan services producer price index rises at fastest rate since March 2015

Japan's services producer price index rose 2.8% year on year in April, marking its fastest rise in nine years and providing another indicator of sustained inflation to the Bank of Japan.

The PPI was higher than the revised 2.4% in March, climbing for a second straight month.

The services PPI measures the average change in prices received by domestic producers.

— Lim Hui Jie

Stocks tick higher on Monday

Here is how futures opened on Monday night:

• Futures tied to the Dow Jones Industrial Average added 57 points, or 0.1%.
• S&P futures gained 0.2%.
• Nasdaq 100 futures edged up 0.3%

— Pia Singh