Dow Hits Record High On Strong Banks And Industrial Stocks, Nasdaq And S&P 500 Slip On Tech Weakness — SPCX, YUM, HOOD, RIVN, AAPL, SNAP In Focus

• The S&P 500 and the Nasdaq 100 fell 0.1% and 1.9%, respectively, while the Dow Jones gained 0.6%.
• SpaceX stock closed nearly 5% higher on Tuesday, soaring for the third session since its Nasdaq debut last Friday.
• Oil prices extended their drop, with Brent crude below $80 per barrel — the first time since March.

The Dow Jones index gained on Tuesday, hitting fresh highs as cooling oil prices pushed industrials and materials stocks higher and calmed inflation worries ahead of the U.S. Fed rate meeting due on Wednesday. 

The S&P 500 lost 0.1%, Nasdaq dropped 1.9% and the Dow Jones rose 0.6%. The Russell 2000, which tracks stocks with small market capitalizations, fell 0.9%. 

Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY) slipped 0.6%, and Invesco QQQ Trust (QQQ) ended Tuesday around 1.9% lower, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) ended 0.5% higher. 

The VanEck Semiconductor ETF (SMH) lost 4.6%.

However, retail sentiment on Stocktwits for SPY and QQQ was ‘bearish’ and ‘normal’ for the DIA, with ‘normal’ to ‘high’ message volumes.

US Market Drivers

Oil prices extended their drop from the prior trading day. Brent crude futures fell 5% to dip below $80 per barrel — the first time since March, as per data from CNBC. U.S. West Texas Intermediate futures declined 5% to around $75 a barrel.

Industrial stocks led the Dow higher with Caterpillar (CAT) gaining most, while JPMorgan Chase

was a leader among banks ahead of the U.S. Federal Reserve rate meeting decision due tomorrow. Caterpillar was up more than 2%, while JPMorgan advanced more than 3%.

Meanwhile, SpaceX overtook Microsoft and Amazon’s market cap at one point during the session. 

Kevin Warsh’s First Meeting Outcome As Fed Chair Due Wednesday

The Federal Open Market Committee’s (FOMC) two-day policy meeting begins today, with the policy decision set to be announced on Wednesday.

While markets expect the Federal Reserve to leave rates unchanged this month, investor focus will be on how Kevin Warsh plans to address inflation. 

“Depending on the tone and how much this meeting reshapes investor expectations, it could dictate the market’s narrative for the next several weeks, at least until earnings season takes over,” Bret Kenwell at eToro told Bloomberg.

Data from the CME FedWatch tool shows that the odds of the Fed keeping rates unchanged are at 99.6%.

Trending Stocks To Watch 

SpaceX (SPCX): Elon Musk-controlled SpaceX agreed to acquire Cursor in a deal valuing the artificial intelligence coding startup at $60 billion.

Yum! Brands (YUM): The restaurant chain owner is selling its Pizza Hut division for $2.7 billion and will focus on its better-performing KFC and Taco Bell chains. 

Robinhood Markets (HOOD):  The stockbroker is cutting 10% of its workforce, a reduction of around 300 positions.   

Rivian (RIVN): The EV startup has laid off many employees in a bid to make the business more profitable on the heels of launching its R2 midsize SUV, as per a WSJ report.

Apple (AAPL): Apple Inc. is reportedly planning a major product refresh in late 2027, including AI-powered AirPods with built-in cameras, a second-generation foldable iPhone and a special 20th anniversary iPhone, according to Bloomberg. 

Snap Inc (SNAP): The company introduced its latest leap into spatial computing on Tuesday, unveiling "Specs"—a fully independent pair of augmented reality (AR) glasses priced at $2,195.  

Read More: SNAP Stock Drops — Snap Launches AR Smart Glasses, But Retail Is ‘Skeptical’ On Over $2,000 Price Tag

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