The Dow Jones Industrial Average closed at a record high on Tuesday as investors moved away from semiconductor stocks and into economically sensitive sectors, supported by a sharp decline in oil prices.
The 30-stock Dow gained 328.64 points, or 0.64%, to finish at an all-time closing high of 51,999.67, after touching an intraday record of 52,190.29. Meanwhile, the S&P 500 slipped 0.57% to 7,511.35, and the Nasdaq Composite fell 1.15% to 26,376.34, weighed down by weakness in technology shares.
Chipmakers came under pressure during the session. AMD dropped more than 7%, Broadcom lost 4%, Micron Technology declined 6%, and Nvidia fell over 2%, dragging the tech-heavy Nasdaq lower.
Oil prices continued their downward trend. Brent crude fell 5.06% to settle at $78.96 per barrel, while WTI crude dropped 5.82% to $76.05 per barrel. Both benchmarks closed below $80 a barrel for the first time since early March.
The decline in energy prices boosted confidence in sectors tied to economic growth. Caterpillar gained more than 1%, leading industrial stocks higher, while JPMorgan Chase climbed over 3% as investors anticipated that cheaper energy could help accelerate U.S. economic activity.
SpaceX remained a major market standout, rising nearly 5% and extending its strong rally since its IPO last week. The stock, which debuted at $135 per share, closed at $201.80 and briefly surpassed both Microsoft and Amazon in market capitalization during the trading session.
Markets also benefited from optimism surrounding easing geopolitical tensions. Monday’s rally followed President Donald Trump’s announcement that the U.S. and Iran had agreed to end their conflict in the Middle East. Pakistani Prime Minister Shehbaz Sharif stated that military operations had ceased on all fronts, with a formal signing ceremony expected in Switzerland on Friday.
Adding to the positive sentiment, Trump said the Strait of Hormuz would reopen on Friday and later clarified that the route would remain toll-free beyond the initial 60-day period, helping push oil prices lower for a second consecutive day.
