Dow hits record high as tech stocks weigh on Nasdaq and S&P 500

US equities ended mixed on Tuesday, with the Dow Jones Industrial Average closing at a record high near 52,016, while the S&P 500 and Nasdaq Composite fell as investors rotated out of technology shares ahead of the US Federal Reserve policy decision.

Market overview

Index	17 Jun 2026 Close	Move & % Change	Comments
Dow Jones Industrial Average	52,016.57	+345.54 pts (+0.67%)	Second straight record close, led by financials and industrials.
S&P 500	7,512.44	-41.85 pts (-0.55%)	Pulled lower by technology stocks after Monday’s sharp rally.
Nasdaq Composite	26,382.81	-301.13 pts (-1.15%)	Tech and chip weakness hit the tech‑heavy benchmark.

• Dow has gained over 2,000 points across a four‑day winning streak.
• S&P 500 had rallied 1.65% on Monday, Nasdaq more than 3%, prompting profit taking.
• Investors paused ahead of Wednesday’s Fed policy update and new Chair Kevin Warsh’s comments.

Sectoral action

Sector/Index	Direction (approx.)	Key Drivers
Technology (incl. chips)	down 1% to 8%	Profit booking after multi‑session surge, rotation into value and cyclicals.
Financials	up	Benefited from shift into economically sensitive sectors.
Industrials	up	Attracted flows as investors moved away from richly valued tech.
Energy / Oil‑linked	down	US crude fell 5.8% on progress in US‑Iran deal.

• Chip stocks like Nvidia, AMD, Broadcom, Micron and Intel fell 2.5% to 8.5%.
• Rotation into old‑economy names supported the Dow’s outperformance.
• Falling oil prices eased some inflation concerns, aiding non‑energy sectors.

Key movers and corporate developments

Stock / Company	Sector	Notable Factor
SpaceX	Aerospace / AI	Shares jumped intraday, briefly topped Microsoft by market value before paring gains.
Western Digital	Technology	Featured among top S&P 500 gainers.
DoorDash	Consumer / Tech	Listed as a leading S&P 500 gainer.
Micron Technology	Semiconductors	Appeared in top gainers list despite broader chip profit taking.
Seagate Technology	Technology	Among notable S&P 500 gainers.
Fox (classes)	Media	Both share classes ranked among top S&P 500 losers.
Coterra Energy	Energy	Declined as crude prices dropped sharply.
Kellanova	Consumer	Featured among key S&P 500 losers.
Olin	Chemicals	Fell after announcing all‑stock acquisition of Huntsman worth $2.43 billion.
Huntsman	Chemicals	Dropped as offer came at a discount to recent price.
Yum Brands	QSR	Rose after agreeing to sell Pizza Hut for $2.7 billion.

• SpaceX ended with gains of about 4%, roughly 10% below its intraday high.
• At its peak, SpaceX briefly ranked among the top four most valuable global companies.
• SpaceX and Amazon closed with similar market capitalisation near $2.66 trillion.

SpaceX, AI deal and volatility

• SpaceX said it would acquire AI coding start‑up Cursor in a deal valuing it at $60 billion.
• The announcement came before market open and helped drive strong early gains in SpaceX shares.
• Limited free float is contributing to heightened volatility in SpaceX trading.
• Around 911 million insider shares are set to unlock two days after quarterly results.
• The unlock is expected in the first week of August, potentially increasing liquidity.

Macro backdrop and Fed expectations

• Investors focused on the Federal Reserve’s policy decision due Wednesday afternoon US time.
• The Fed funds rate currently stands in a 3.50% to 3.75% target range.
• Traders widely expect the Fed to keep rates unchanged, per CME FedWatch probabilities.
• FedWatch data show about a 42% chance of a 25 bps hike in December.
• Market participants will scrutinise Kevin Warsh’s guidance on inflation, jobs and growth.
• Warsh has been critical of the Fed’s dot plot and may not join its projections.
• Economists warn non‑participation in the dot plot could unsettle markets.

• “We had a big move yesterday in the market. We are just digesting some of those gains and the setup in anticipation of the Fed meeting is always a little tentative.” — Mark Luschini, Chief Investment Strategist, Janney Montgomery Scott.

Geopolitics, oil and inflation

• US crude futures fell 5.8%, the lowest since early March.
• Decline followed emerging details of a US‑Iran interim deal on the ongoing conflict.
• The deal is expected to extend an April ceasefire by 60 days and reopen the Strait of Hormuz.
• Iran has effectively blocked the strait since US and Israeli strikes in February.
• A US official said the agreement would allow Iran to sell oil upon signing.
• US President Donald Trump said the deal would rule out a nuclear weapon for Tehran.
• Earlier war‑driven oil gains had stoked inflation worries and rate‑hike fears.

Technical and positioning snapshot

• Dow’s four‑day advance and new high near 52,000 underline rotation into cyclicals.
• S&P 500 and Nasdaq remain near recent peaks despite Tuesday’s pullback.
• Investors are reassessing heavy exposure to large‑cap technology after recent outperformance.

FAQ

Q: Why did the Dow rise while the Nasdaq and S&P 500 fell?

• Investors booked profits in technology and chip stocks and rotated into financials and industrials, lifting the Dow while pressuring the tech‑heavy Nasdaq and S&P 500.

Q: How did SpaceX influence broader US markets?

• Strong interest in SpaceX, including its AI acquisition news and large market value swings, coincided with profit taking in other tech names as some investors reallocated capital.

Q: What are markets expecting from the Federal Reserve?

• Traders largely expect rates to stay in the 3.50% to 3.75% range, with attention on Chair Kevin Warsh’s comments and updated projections for clues on the path of policy later in the year.

Frequently Asked Questions

Why did the Dow rise while the Nasdaq and S&P 500 fell?

Investors rotated out of technology and chip stocks after recent gains and moved into financials and industrials, which have a larger weight in the Dow, lifting it even as tech‑heavy indices declined.

How did falling oil prices affect US stocks?

A 5.8% drop in US crude eased some inflation concerns and supported broader equities, but weighed on energy names such as Coterra Energy that are directly linked to oil prices.

What role did SpaceX play in Tuesday’s session?

SpaceX rallied on news of a $60 billion AI acquisition and briefly surpassed Microsoft in market value, but its volatility and investor interest also coincided with profit taking in other large technology stocks.