Intel Surges as S&P 500 Hits Fresh Record High

Intel jumped sharply on Tuesday after reports that Apple could use its chipmaking services, helping lift the S&P 500 and Nasdaq to fresh record closes. The FTSE 100 fell as HSBC slid following a surprise fraud-related loss, while oil prices dropped again after Donald Trump signalled progress towards a potential Iran agreement. The dollar weakened against major currencies, with sterling rising to $1.359 and the yen strengthening amid renewed intervention speculation in Japan. 

Equities

The FTSE 100 fell 1.4% to 10,219.1 on Tuesday, its sharpest one-day decline since late March, as investors returned from the bank holiday to weaker banking shares and concerns about Middle East tensions. The FTSE 250 slipped 0.4%, while traders also reacted to Brent crude holding near $110 a barrel despite easing slightly during the session.

HSBC closed 5.9% lower on Tuesday after reporting an unexpected $400 million loss linked to a fraud case, raising concerns about exposure to private credit markets. The wider UK banking sector fell heavily, with the FTSE bank index down 4.6% and touching its weakest level in almost a month.

Travel shares also moved lower on Tuesday as higher oil prices added pressure to airline and cruise operators. Carnival dropped 3.7%, while British Airways owner IAG closed 1.6% lower.

Intertek jumped almost 6% on Tuesday after confirming it was reviewing a revised takeover proposal from Swedish private equity group EQT. BT Group added 1.7% after BofA Global Research upgraded the telecoms company to “buy”, pointing to the possibility of a larger dividend payout. Vodafone fell 2.2% after agreeing to buy CK Hutchison’s stake in VodafoneThree for £4.3 billion.

In the US, the S&P 500 rose 0.81% to a record close of 7,259.22 on Tuesday, while the Nasdaq gained 1.03% to finish at an all-time high of 25,326.13. The Dow Jones Industrial Average climbed 0.73% to 49,298.25.

Chipmakers led gains on Wall Street. Intel surged 13% on Tuesday after Bloomberg reported that Apple was considering using Intel’s manufacturing services to produce processors for future devices. AMD rose 4% ahead of its quarterly earnings release, with investors expecting strong revenue growth tied to demand for artificial intelligence infrastructure. The Philadelphia semiconductor index jumped 4.2% to a record high and is now up 55% since the start of 2026.

DuPont rallied 8.4% after lifting its full-year profit forecast, while Pinterest gained 6.9% after issuing second-quarter revenue guidance above analysts’ expectations. Archer-Daniels-Midland rose 3.8% after reporting stronger-than-expected first-quarter profits driven by improved margins.

Forex & Commodities

The US dollar weakened against most major currencies early on Wednesday as investors reacted to signs that Washington and Tehran could be moving closer to an agreement. The dollar index fell to 98.03, while the euro strengthened to $1.174 and sterling rose to $1.359.

The Japanese yen climbed sharply to 155.0 per dollar, its strongest level since late February, after another sudden move higher in the currency triggered speculation that Japanese authorities may have intervened in the market. Japanese finance minister Satsuki Katayama repeated earlier this week that Tokyo was prepared to act against speculative currency moves if needed.

Commodity-linked currencies also moved higher against the dollar during Asian trading on Wednesday. The Australian dollar rose to a four-year high of $0.7250, while the New Zealand dollar climbed to $0.5951, its strongest level in almost two months.

Oil prices fell for a second straight session on Wednesday morning after President Donald Trump signalled that progress had been made towards a potential agreement with Iran. Brent crude dropped to $108.2 a barrel, while US West Texas Intermediate crude traded at $100.6 after both benchmarks had already fallen sharply on Tuesday.

Trump said the US would temporarily pause operations escorting ships through the Strait of Hormuz while negotiations continued, although the US Navy’s blockade of Iranian ports remains in place. US secretary of state Marco Rubio also said Washington’s military objectives in the region had been achieved.

Spot gold climbed to $4,667 per ounce on Wednesday morning as the weaker dollar supported demand for precious metals. Silver rose to $75.84 per ounce, platinum reached $2,003 and palladium traded at $1,523.