Dow Jones posts second consecutive record close as Nasdaq and S&P slip

The Dow Jones Industrial Average rose 345.54 points, or 0.67%, to finish at 52,016.57, marking its second consecutive record close. In contrast, the S&P 500 slipped 41.85 points, down 0.55% to 7,512.44, and the Nasdaq Composite fell 301.13 points, or 1.15%, to 26,382.81.

Investors shifted away from heavily valued technology stocks, with chip shares dropping sharply after three days of gains. Financials and industrials led the S&P 500’s 11 sectors higher, while economically sensitive areas attracted buying.

Oil prices fell to their lowest level since early March, easing some inflation concerns but also prompting caution ahead of the Federal Reserve’s policy decision on Wednesday.

“We had a big move yesterday in the market,” said Mark Luschini, chief investment strategist at Janney Montgomery Scott, referring to Monday’s 1.65% rally in the S&P 500 and the Nasdaq’s more than 3% gain. “We’re just digesting some of those gains and the setup in anticipation of the Fed meeting is always a little tentative.”

Preliminary data show the market’s mixed performance came as U.S. oil futures settled down 5.8% following details of a U.S.-Iran interim agreement that could extend a cease-fire and reopen the Strait of Hormuz. The deal is expected to allow limited Iranian oil sales while maintaining restrictions on nuclear weapons development.

Traders largely anticipate the Fed will keep interest rates in the 3.50%-3.75% range, though CME Group’s FedWatch tool indicates a roughly 42% probability of a 25-basis-point hike in December.

Among individual stocks, Olin’s shares dropped after the chemical producer announced an all-stock acquisition of Huntsman valued at $2.43 billion, a price considered a discount to Huntsman’s recent market level.