The Dow Jones index hit a record high on Tuesday, gaining 0.6% to close at 51,999.67, while the S&P 500 slipped 0.1% to 7,548.60 and the Nasdaq 100 dropped 1.9% to 29,968.13. The divergence came as cooling oil prices pushed industrial and materials stocks higher and eased inflation concerns ahead of the U.S. Federal Reserve rate meeting due Wednesday. Brent crude futures fell below $80 per barrel for the first time since March, while West Texas Intermediate declined to around $75 per barrel.
Oil Prices Fall Below $80 Per Barrel
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, according to data from CNBC. U.S. West Texas Intermediate futures declined 5% to around $75 a barrel. The decline in energy costs contributed to gains in industrial stocks, with Caterpillar up more than 2% and JPMorgan Chase advancing more than 3% ahead of the Federal Reserve rate meeting.
Federal Reserve Rate Decision Due Wednesday
The Federal Open Market Committee's two-day policy meeting begins today, with the policy decision set to be announced on Wednesday. Markets expect the Federal Reserve to leave rates unchanged this month, with CME FedWatch tool data showing odds of 99.6% for no rate change. Investor focus will be on how Kevin Warsh plans to address inflation in his first meeting outcome as Fed Chair. Bret Kenwell at eToro told Bloomberg that the meeting's tone could dictate the market's narrative for the next several weeks, at least until earnings season takes over.
SpaceX Acquires Cursor in $60 Billion Deal
SpaceX closed nearly 5% higher on Tuesday, soaring for the third session since its Nasdaq debut last Friday. Elon Musk-controlled SpaceX agreed to acquire Cursor in a deal valuing the artificial intelligence coding startup at $60 billion. SpaceX overtook Microsoft and Amazon's market cap at one point during the session.
Yum Brands Sells Pizza Hut Division for $2.7 Billion
Yum! Brands is selling its Pizza Hut division for $2.7 billion and will focus on its better-performing KFC and Taco Bell chains.
Robinhood Cuts 10% of Workforce
Robinhood Markets is cutting 10% of its workforce, a reduction of around 300 positions.
Rivian Lays Off Employees Ahead of R2 SUV Launch
Rivian has laid off many employees in a bid to make the business more profitable on the heels of launching its R2 midsize SUV, according to a Wall Street Journal report.
Apple Plans Late 2027 Product Refresh
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 Launches AR Glasses Priced at $2,195
Snap Inc introduced its latest leap into spatial computing on Tuesday, unveiling "Specs" — a fully independent pair of augmented reality (AR) glasses priced at $2,195.
FAQ
What caused the Dow Jones to hit a record high on Tuesday?
The Dow Jones gained 0.6% to close at 51,999.67 on Tuesday as cooling oil prices pushed industrial and materials stocks higher and eased inflation concerns ahead of the U.S. Federal Reserve rate meeting due Wednesday. Brent crude futures fell below $80 per barrel for the first time since March.
When is the Federal Reserve rate decision due?
The Federal Open Market Committee's policy decision is set to be announced on Wednesday. The two-day policy meeting begins today, with markets expecting the Federal Reserve to leave rates unchanged this month at 99.6% odds according to CME FedWatch tool data.
What deal did SpaceX announce on Tuesday?
Elon Musk-controlled SpaceX agreed to acquire Cursor in a deal valuing the artificial intelligence coding startup at $60 billion. SpaceX stock closed nearly 5% higher on Tuesday, soaring for the third session since its Nasdaq debut last Friday.
