Dow Hits Second Straight Record as Tech Falls, Oil Drops
Dow closed at a record for a second session as tech stocks fell and oil slid about 5%, prompting rotation into financial and industrial shares ahead of the Fed meeting.
The Dow Jones Industrial Average rose 345.54 points, or 0.67%, to 52,016.57 on Tuesday, marking a record close for a second consecutive session. The S&P 500 fell 0.55% to 7,512.44 and the Nasdaq Composite declined 1.15% to 26,382.81.
Investors trimmed positions in large technology names after a sharp rally on Monday tied to optimism about a possible U.S.-Iran agreement. Semiconductor stocks led losses: Advanced Micro Devices fell more than 5%, Broadcom and Micron Technology dropped over 3% each, and Nvidia slipped just over 1%. SpaceX was an exception, rallying and briefly pushing its market value above Amazon’s and at one point surpassing Microsoft’s valuation before retreating.
Energy markets influenced the session. Brent crude futures fell about 5% to below $80 a barrel for the first time since March, while U.S. West Texas Intermediate declined roughly 5% to about $75 a barrel. The price drop followed comments from President Donald Trump on the proposed deal and the expected reopening of the Strait of Hormuz, which would allow Iranian oil exports to resume under specific conditions.
Shares tied to economic activity rose. Caterpillar gained more than 2% and JPMorgan Chase climbed over 3%, leading advances among industrial and financial stocks as investors rotated out of major technology winners.
Attention turned to the Federal Reserve’s first policy meeting under Chair Kevin Warsh, scheduled for Wednesday. Policymakers are widely expected to keep the federal funds rate target range at 3.50% to 3.75%. The CME Group’s FedWatch tool showed about a 42% probability of a quarter-point rate increase by December.
In corporate news, Olin agreed to acquire Huntsman in an all-stock transaction valued at $2.43 billion; shares of both companies fell on the announcement. Yum Brands announced plans to sell its Pizza Hut business for $2.7 billion and its shares advanced.
The session featured a rotation from technology into financial and industrial names, and movements in energy prices tied to developments around the proposed U.S.-Iran agreement ahead of the Fed meeting.
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