The Dow Jones Industrial Average rose to a record high on Tuesday, boosted by old economy stocks as oil prices moved lower, while chipmakers bogged down the Nasdaq Composite.
The 30-stock index was up 477 points, or 0.9%. It scored a new all-time intraday high in the session. The S&P 500 fell 0.1%, while the Nasdaq Composite pulled back 0.5%.
Pulling down the tech-heavy Nasdaq, a number of chip stocks suffered losses Tuesday. Advanced Micro Devices dropped more than 4%, while Broadcom and Micron Technology shed more than 3% each. Nvidia lost more than 1%.
Elsewhere, 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. U.S. West Texas Intermediate futures declined 5% to around $75 a barrel.
As oil dipped further, shares of Caterpillar led industrials higher, while JPMorgan Chase was a leader among banks higher as investors bet that lower energy prices will spur a re-acceleration in the U.S. economy. Caterpillar was up more than 2%, while JPMorgan advanced more than 3%.
SpaceX also continued to be a standout with its 10% pop, a move that added to its sharp gains since going public last week. With its gains, SpaceX had at one point surpassed both Microsoft and Amazon in market cap during the session. The company priced its initial public offering at $135. It last traded around $212.
The major averages are building on a winning session from Monday, which occurred on the heels of President Donald Trump announcing that the U.S. and Iran had reached a deal to end the war in the Middle East. Pakistani Prime Minister Shehbaz Sharif said that both sides have declared the termination of their military operations on all fronts, with an official signing ceremony to take place this Friday in Switzerland.
Trump also said that the key Strait of Hormuz passageway would reopen on Friday, sending oil prices down nearly 5% on Monday. He later clarified Tuesday that the strait will remain toll free beyond the initial 60-day period.
“We’re not out of the woods yet,” said Andy Goldberg, chief investment strategist at Nomura Asset Management International.
“If all of a sudden oil prices were to come down quickly, the headline inflation number will come down, but at the same time, it’ll put a lot of money back in consumers’ pockets right at a time where they’re feeling pretty good, and that’s how you can get some more inflation,” he added. “Warsh has a balancing act on his hands.”
Fed is too focused on backward-looking data, Miran says
The Federal Reserve has an “excess focus” on economic data focused on past trends, according to former member Stephen Miran.
“There’s maybe an excess focus on some backward-looking data,” Miran, now a senior strategist at Hudson Bay Capital, said Tuesday on CNBC’s “Squawk on the Street.”
Meanwhile, there’s “not enough of a focus on … asking the questions: Why is inflation going to be elevated in June, July, September, December of 2027 — not right now?,” said Miran, who used be to a Fed governor.
Miran, who is known for his dovish views on monetary policy, said current drivers of inflation like energy may not impact price growth longer term.
His comments come ahead of Wednesday’s Fed decision. Market participants largely expect the central bank to keep rates unchanged despite President Donald Trump’s push for cuts.
— Alex Harring
European stocks close higher, banks and industrials lead gains
The pan-European Stoxx 600 edged higher on Monday as investors remained broadly optimistic on a peace deal between Washington and Tehran.
All major regional exchanges finished in positive territory, with the U.K’s FTSE 100 adding 0.6%, France’s Cac 40 adding 0.8% and Germany’s DAX closing just above the flatline.
Most regional sectors moved higher, as banks added over 1.6% while industrial stocks added 1%. Tech stocks and telecoms lagged the broader index, closing down 1.68% and 1.75%, respectively.
— Joseph Wilkins
Industrials Extend Rally as XLI Hits Record High
Industrials continue to outperform the broader market Tuesday, with the State Street Industrial Sector ETF hitting an all-time high and extending its recent breakout. The move comes as investors continue to rotate into infrastructure, aerospace and defense and electrical equipment names that have benefited from capital spending, grid infrastructure and manufacturing activity.
Leadership within the group has been broad. Hubbell Inc leads the group up more than 7.5% so far this week, while GE Vernova is up more than 5.5% as investors bid up companies tied to grid investment and power demand. Trane Technologies and Eaton have each climbed more than 5% WTD. Honeywell and Caterpillar have each added more than 4% this week, with CAT hitting a new all-time high this morning.
Infrastructure names also among the standouts. The Global X US Infrastructure Development ETF hit an intraday all-time high today, with components like Primoris and Valmont each gaining more than 3%. Several PAVE holding notches new 52-week highs, including Valmont, Granite Construction, Rockwell Automation and Woodward.
While aerospace and defense remain largest industry exposure within XLI, the sector’s strength has broadened beyond that theme.
— Nick Wells and Gina Francolla
Enthusiasm eases in BofA survey as investors see semis as most-crowded trade
Professional investors grew slightly less bullish in June while anticipating tighter policy from the Federal Reserve, according to Bank of America’s latest fund manager survey released Tuesday.
Cash levels edged higher to 4.1% while portfolio managers cut allocations to global equities and tech stocks, the latter move coming with respondents saying that semiconductors was the most crowded trade. In fact, the 80% of respondents who cited semis was the highest level in the survey’s history when ranking overbought parts of the market.
The survey’s results come on the eve of Kevin Warsh’s first meeting as Federal Reserve chair.
Expectations were largely for a tougher tone, with no anticipation of a rate cut. Some 55% of respondents see a “hawkish hold” entailing tougher talk about inflation while 33% see a “dovish hold,” which would be a nod toward future policy easing if conditions warrant.
As far as investor fear goes, the biggest “tail” worry is high inflation, cited by 34%, and an artificial intelligence bubble, cited by 28% of respondents.
— Jeff Cox
SpaceX moves past Microsoft in market cap
SpaceX shares surged about 13% on Tuesday, as Elon Musk‘s rocket-builder continued its meteoric rise following a record-breaking IPO on Friday.
With the skyrocketing share price, SpaceX overtook Microsoft in market cap, becoming the fourth-largest company in the U.S. SpaceX’s market cap stood at $2.94 trillion, while Microsoft is valued at $2.93 trillion. Read more.
— Kai Nicol-Schwarz
SpaceX tops Amazon in market cap
— Fred Imbert
S&P 500 opens little changed
The S&P 500 began Tuesday’s session relatively unchanged.
The broad market index hovered around the flatline shortly after 9:30 a.m. ET, as did Nasdaq Composite. The Dow Jones Industrial Average increased 234 points, or 0.5%.
— Sean Conlon
Options trading on SpaceX begins Tuesday
After its public market debut on Friday, SpaceX options are set to list starting Tuesday, opening a new avenue for traders to forecast the future of the stock.
While options traders have had a heavy interest in both space stocks and AI plays, SpaceX presents a unique company where its valuation is so high — above $2 trillion — but it is still unprofitable.
“It has the TAM of a science fiction novel while the price to earnings-growth ratio of chips is the lowest it’s been in the sector’s history,” said Mike Purves, CEO of Tallbacken Capital Advisors. “But there’s a huge bid in upside calls for anything AI-related and that means the price for protection is higher too – I’d suggest SpaceX will be having that dynamic magnified.”
Observers say to expect SpaceX options to draw speculators’ attention and have high volumes along with elevated implied volatility. Read more here.
— Oliver Renick and Davis Giangiulio
Import prices rose much more than expected in May
Surging energy costs in May sent import prices to their highest annual gain in nearly four years, the Bureau of Labor Statistics reported Tuesday.
Import prices rose 1.9% on the month, well above the 1.1% Dow Jones consensus forecast, though slightly below the 2% increase in April. On an annual basis, prices rose 6.7%, the largest gain since August 2022.
Fuel and lubricant prices jumped 12.5%, causing much of the top-line increase. For the February-to-May period associated with the Iran war, prices soared 58.3%, the largest three-month gain since July 2020.
Export prices increased 1.3% following a 3.5% surge in April.
— Jeff Cox
Brent crude falls below $80 per barrel for first time since March
Oil prices fell to their lowest level in three months on Tuesday, as investors continue to await further details on the U.S.-Iran agreement to bring the Middle East conflict to an end.
Brent crude futures briefly fell to $79.96 per barrel, the first time the international benchmark has traded below $80 since March. It was last trading about 3.6% lower at $80.19 as of 8:28 a.m. ET.
U.S. West Texas Intermediate futures traded about 3.8% lower to $77.71. Read more.
— Spencer Kimball and Hugh Leask
Robinhood to slash 10% of workforce, shares rise
Robinhood shares rose more than 1% in the premarket after the company said that it would cut roughly 10% of its workforce.
The company plans to take second-quarter charges of around $20 million in severance and benefits costs and about $8 million in share-based compensation costs.
— Sean Conlon
SpaceX, Huntsman and Dave & Buster’s among the stocks making moves before the bell
Check out the companies making the biggest moves premarket:
- SpaceX — Elon Musk’s rocket company jumped another 10%, building on its already massive gains. SpaceX priced its initial public offering at $135 per share and began trading Friday. The stock traded at around $212 in the premarket, 57% above the IPO price.
- Huntsman — The chemicals manufacturer fell around 10% after it agreed to merge with rival Olin in an all-stock deal. After the merger, the new company will be named OlinHuntsman. The deal is expected to close in the first half of 2027. Olin shares slipped around 1%.
- Dave & Buster’s — The video game and restaurant stock plunged 14% on weaker-than-expected first-quarter results. The company earned 16 cents per share, well below the StreetAccount forecast of 60 cents per share. Revenue of $559.2 million also missed the $580.6 million consensus. Comparable store sales dropped 5.4% from the year-earlier period.
Read here for the full list.
— Fred Imbert
SpaceX will buy AI coding startup Cursor
Elon Musk’s SpaceX will buy AI coding startup Cursor from acquiring its parent company Anysphere for $60 billion. This comes after SpaceX’s record-breaking debut on the Nasdaq last Friday that made Musk a trillionaire and SpaceX over $2 trillion in valuation.
The merge will happen in the third quarter this year, SpaceX said. Back in April, the company had two options: acquire Cursor for $60 million or pay $10 billion for their new partnership.
The deal can help SpaceX be a more competitive player in AI coding market. The company already merged Musk’s xAI with the space tech company in February.
— Ananya Chetia
SpaceX rallies again
Elon Musk’s rocket company jumped another 8%, building on its already massive gains. SpaceX priced its initial public offering at $135 per share and began trading Friday. The stock traded at around $208 in the premarket, 54% above the IPO price.
— Fred Imbert
Frankfurt prosecutors open market manipulation probe as Germany reiterates opposition to UniCredit’s Commerzbank offer
Germany reiterated its opposition to UniCredit‘s proposed takeover of Commerzbank on the final day of its offer period, as the banks’ takeover tussle turned increasingly sour.
Germany’s Finance Agency, which holds a stake of around 12% in Commerzbank, said in a statement on Tuesday that the bid “did not include an appropriate premium” on the current Commerzbank share price, while rejecting UniCredit’s “aggressive” approach.
Separately, Frankfurt prosecutors said they had started a preliminary investigation into possible market manipulation related to the deal. It follows a criminal complaint from Commerzbank’s workers council.
— Joseph Wilkins
Asia markets close mostly higher; Japan’s Nikkei 225 briefly touches 70,000
Japan’s Nikkei 225 reached hit an all-time intraday high and ended the trading day 0.13% higher at 69,404.50, while South Korea’s Kospi jumped 2.11% to 8,726.60.
Hong Kong Hang Seng Index was the worst performer among major Asian indexes, dropping 1.64%, while mainland’s China’s CSI 300 fell 0.15% to 4,884.23. Australia’s benchmark S&P/ASX 200 ended flat at 8,917.70.
— Justina Lee
European stocks open higher as Iran peace plan dominates G7 summit
European stocks opened higher on Tuesday as investors awaited more details on the provisional Middle East peace agreement, with the conflict dominating discussions at the G7 leaders’ summit in Évian-les-Bains, France.
The pan-European Stoxx 600 index was up 0.25% shortly after 8:10 a.m. in London (3:00 a.m. E.T.),
Most regional sectors moved higher, as industrial stocks advanced more than 1% and banks added 0.66%. On the downside, mining names led losses, sliding 0.53% in early trade.
All major bourses were up, with the Italian FTSE MIB rising 0.59%, as France’s CAC 40 gained 0.39%. In London, the FTSE 100 opened 0.22% higher and Germany’s DAX followed closely, adding 0.21% in morning dealmaking.
— Hugh Leask
Australia central bank keeps rates steady at 4.35% amid elevated inflation
The Reserve Bank of Australia held rates at 4.35% Tuesday, while stating that it was ready to hike to manage its mandate for price stability and full employment.
While growth has been below expectations, inflation has run above the RBA’s target. The April print softened to 4.2% on a year on year basis, but was still above the central bank’s target of 2% to 3%.
“Higher fuel prices have added directly to inflation and there are indications that this is passing through to the prices of other goods and services, so inflation is likely to remain high for some time,” the RBA wrote.
— Lim Hui Jie
Bank of Japan hikes rates to highest since 1995 as yen declines to historic lows
Japan’s central bank on Tuesday raised its policy rate to the highest in over 30 years at 1%, in line with expectations of economists polled by Reuters, accelerating policy normalization started in 2024.
This is the Bank of Japan’s first hike since December, when it raised rates to 0.75%, and the first time since 1995 that rates have been increased to 1%.
The policy tightening comes at a time when Japan has been struggling with a weak yen and inflation that has started to creep up, partly due to the Iran war.
— Lim Hui Jie
SoftBank Vision Fund CFO leaving company after a decade: Reuters
Navneet Govil, chief financial officer at SoftBank Group’s Vision Fund investing arm, is exiting the company following a decade there, Reuters reported, citing an internal memo.
More details will be shared by the company about transition responsibilities at a later time, according to a memo by Alex Clavel, CEO of SoftBank Investment Advisors, according to Reuters.
— Justina Lee
China retail sales contract in May, posting first drop in over three years
China’s retail sales fell for the first time in more than three years in May, signaling a deepening economic slump, according to data released Tuesday by the National Bureau of Statistics.
Retail sales, a gauge of consumption, declined in May for the first time since December 2022, dropping 0.6% from a year earlier. The Labor Day holiday at the start of May failed to offset the country’s sluggish consumer spending. That figure came in lower than the forecast for no change among economists polled by Reuters.
Industrial output was the lone bright spot, rising 4.5% in May to top estimates of 4.3% growth and rebounding from April’s near three-year low of 4.1%.
The national unemployment rate fell to 5.1% in May, compared with 5.2% in April.
Read more here.
— Anniek Bao
South Korean defense stocks outperform broad market
South Korean defense stocks climbed sharply on Tuesday, outperforming the broader market, even as the U.S. and Iran reached a deal to end the war.
Hanwha Aerospace, Seoul’s largest defense stock, was up over 10%, while Hyundai Rotem, maker of the K2 main battle tank, was up 11%.
LIG Defense & Aerospace spiked over 28%, almost hitting the daily 30% price limit on the Kospi. The company manufactures the Cheongung air defense system, which saw its combat debut in the United Arab Emirates during the Iran war.
— Lim Hui Jie
South Korea’s Kospi extends winning run, rising 2%
Asia-Pacific markets traded mixed early Tuesday, with South Korea’s Kospi leading gains.
The Kospi advanced 2.01% at open, while the small-cap Kosdaq dropped 0.56%. Japan’s Nikkei 225 added 0.18% while the Topix slipped 0.39%.
Hong Kong’s Hang Seng index futures were last at 24,799, lower than the index’s close of 24,842.67.
— Justina Lee
Asia-Pacific markets set to open mixed as investors assess Iran-U.S. deal
Asia-Pacific markets were set to open mixed Tuesday, as investors assessed Iran-U.S deal to end the war in the Middle East.
Japan’s Nikkei 225 was poised to rise, with the Chicago futures contract at 69,545 while its Osaka counterpart last traded at 69,750, compared with the index’s Monday close of 69,317.50.
Hong Kong’s Hang Seng index futures were last at 24,799, lower than the index’s close of 24,842.67.
In Australia, futures last traded at 8,827, while the S&P/ASX 200′s closed at 8,914.
The U.S. and Iran struck a preliminary deal with “a lot” of details remaining to be ironed out, according to Vice President JD Vance on Monday, adding that America has “all the cards.”
The U.S.-Iran ceasefire will be extended for 60 days and set up a framework for future negotiations regarding Tehran’s nuclear program and other key issues. Text of the preliminary deal has not been released.
Iranian Foreign Minister Abbas Araghchi and Parliamentary Speaker Mohammad Bagher Ghalibaf are expected to be involved in the upcoming discussions, Vance told CNBC’s “Squawk Box.” He also told CNBC that Washington expects the Strait of Hormuz to open “toll free” for the long term.
— Justina Lee
Seven of the 11 GICS sectors rise on Monday
On Monday, seven of the 11 GICS sectors ended the session higher.
Information technology names led the index higher, with the sector rising 3.39%. Communication services and consumer discretionary stocks were the second and third best performers, respectively gaining 2.42% and 1.91%.
On the other hand, energy stocks fell on a potential peace deal between the U.S. and Iran, with the sector shedding 3.58%. Real estate, healthcare and consumer staples also ended in the negative, with the sectors respectively declining 0.90%, 0.70% and 0.53%.
— Lisa Kailai Han
Shares of Dave & Buster’s Entertainment plunge after revenue miss
For its last quarter, the company’s revenue came in at $559.2 million, while analysts polled by FactSet were looking for $580.6 million. Dave & Buster’s also reported GAAP earnings of 16 cents per share, below its year-ago numbers of 62 cents and FactSet’s consensus estimate of 60 cents per share.
— Lisa Kailai Han
Stock futures open little changed
Stock futures traded near flat on Monday night.
Shortly after 6 p.m. ET, futures linked to all three major indexes were little changed.
— Lisa Kailai Han
