Wall Street finished Tuesday’s session with a split verdict, as continued strength in technology stocks lifted the Nasdaq to another record close while the Dow Jones Industrial Average drifted lower and the S&P 500 ended essentially unchanged. After Monday’s broad rally, investors spent the day weighing falling oil prices and renewed enthusiasm for artificial intelligence against mixed signals on U.S.-Iran diplomacy and fresh talk of further Federal Reserve rate hikes.
What Moved Markets
The tech-heavy Nasdaq Composite rose 122.18 points, or 0.45 percent, to close at 27,244.28, marking its second consecutive record close. The S&P 500 slipped 0.06 points, or less than 0.01 percent, to 7,764.64, while the Dow fell 185.14 points, or 0.36 percent, to 51,863.69. The blue-chip index has diverged from its peers in recent sessions, weighed down in part by weakness in financial stocks.
Oil prices were a key focus throughout the day. Crude fell early after reports that Iran could reopen the Strait of Hormuz within seven days if the U.S. eases military pressure. Prices bounced off their lows, however, after President Donald Trump told the United Nations General Assembly that he expects a U.S.-Iran deal to come “right after” the November midterm elections, suggesting a longer timeline than some traders had hoped. Brent crude briefly dipped to around $97 per barrel before climbing back near $100.
Chipmakers and other AI-related names extended their gains, helped by strong early adoption of Meta Platforms’ new Muse AI agent. Investors are also looking ahead to Chinese President Xi Jinping’s visit to Washington this week, after Treasury Secretary Scott Bessent described preliminary trade talks as “very successful.”
On the rate front, Richmond Fed President Tom Barkin said stubborn inflation, driven in part by higher oil prices and tariffs, justified last week’s rate hike – the Fed’s first since 2023 – and left the door open to further increases.
Notable Movers
Viking Therapeutics (VKTX) was among the day’s biggest winners, soaring more than 25 percent after its experimental obesity drug VK2735 showed 22 percent weight loss in a clinical trial. The company also said the drug showed promise in helping patients maintain weight loss with less frequent injections.
AutoZone (AZO) gained roughly 5 percent after the auto parts retailer reported higher fourth-quarter profits that beat expectations and said it expects sales to accelerate in 2027, even though revenue came in below forecasts.
SanDisk (SNDK) climbed about 6 percent after Rosenblatt Securities initiated coverage with a Buy rating and a $2,400 price target, citing growing demand for memory chips in AI infrastructure.
On the downside, Charles Schwab (SCHW) fell more than 5 percent as financial stocks came under pressure following the Fed’s hawkish stance. Expedia Group (EXPE) also tumbled sharply, extending losses tied to macroeconomic worries and a recent underweight rating from Morgan Stanley.
Looking Ahead
Traders will be watching for headlines from Xi Jinping’s arrival in Washington on Wednesday, with any progress on trade, AI cooperation or rare earth exports likely to move markets. Meta’s Connect event, also on Wednesday, could keep the spotlight on AI stocks. Investors will continue to track oil prices and any developments in U.S.-Iran talks, along with a heavy slate of Fed speakers this week for clues on whether more rate hikes are coming. KB Home’s quarterly results after Tuesday’s close may also offer a read on the housing market.