Nasdaq, S&P 500 slip while Dow hits record high

U.S. stock markets saw mixed movements on Tuesday, with the Nasdaq Composite and S&P 500 declining while the Dow Jones Industrial Average set a new record high. The Nasdaq dropped 1.15% to 26,382.81, and the S&P 500 fell 0.55% to 7,512.44, following a sharp rally the previous day fueled by optimism over a potential U.S.-Iran peace deal. The Dow rose 0.67% to 52,016.57, marking its second straight record close. Investors rotated out of technology stocks, which had surged in recent sessions, while financials and industrials led gains. Chip stocks, in particular, declined after three consecutive days of strong performance. SpaceX shares rallied but pared earlier gains, briefly surpassing Microsoft’s market value during trading. Oil prices fell 5.8% to their lowest since early March as details emerged about the U.S.-Iran interim deal, which could extend a ceasefire by 60 days and reopen the Strait of Hormuz. The agreement has eased inflation concerns, though the Federal Reserve is expected to hold interest rates steady at 3.50% to 3.75% on Wednesday. Traders anticipate a possible rate hike in December, with a 42% chance predicted by CME Group’s FedWatch tool. Corporate news also influenced trading, with Olin announcing a $2.43 billion acquisition of Huntsman, sending both stocks lower. Meanwhile, Yum Brands saw a rise after announcing a $2.7 billion sale of its Pizza Hut chain, reflecting ongoing challenges in the fast-food sector. Market analysts noted cautious sentiment ahead of the Fed’s policy announcement, with some investors hesitant to sustain recent gains without further clarity on economic conditions.