The Nasdaq Composite climbed to a fresh record on Tuesday as technology stocks supported gains on Wall Street, while the S&P 500 ended nearly flat. Investors remained focused on developments between the U.S. and Iran, along with changing oil prices and expectations for interest rates.
The tech-heavy Nasdaq rose 0.45% to close at a record 27,244.28. Sandisk shares jumped nearly 7% following a bullish call from Rosenblatt, helping lift the technology-focused index. The S&P 500 slipped marginally to 7,764.64, while the Dow Jones Industrial Average fell 185.14 points, or 0.36%, to finish at 51,863.69.
Oil Extends Losing Streak
Oil prices continued their decline for a fifth consecutive session after President Donald Trump said U.S. officials had a “very good meeting” with Iran’s delegation that lasted around three hours.
Brent crude futures settled 1.09% lower at $99.25 a barrel, while U.S. crude futures declined 1.24% to $94.59. Oil had also moved lower after reports that Iran had offered to reopen the Strait of Hormuz within seven days, although the reports had not been independently verified by CNBC.
Saudi Arabia was also reportedly preparing to restart its East-West pipeline, adding to expectations that additional oil supply could become available.
Interest Rates Remain in Focus
Tuesday’s market movements followed a strong Wall Street session in which the S&P 500 recorded its best performance since August 4 and the Nasdaq reached its first closing record since June.
Falling oil prices have provided some support to stocks by easing concerns over inflation and economic pressure. Treasury yields also edged lower, with the 10-year yield trading at 4.959%.
However, investors remain cautious about the outlook for interest rates. Tom Garretson, senior portfolio strategist at RBC Wealth Management, said markets may not have fully accounted for the implications of a higher-rate environment and suggested that further Federal Reserve increases could remain a possibility.
U.S.-China Meeting Ahead
Attention now turns to a planned meeting in Washington between President Trump and Chinese President Xi Jinping. Artificial intelligence, tariffs, the Iran conflict and rare earth metals are expected to feature prominently in discussions.
Treasury Secretary Scott Bessent has already met with Chinese Vice Premier He Lifeng ahead of Xi’s visit, adding another layer of significance to the upcoming talks as investors monitor developments across markets.
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