WASHINGTON (dpa-AFX) - Following the strong upward move seen over the past few sessions, the major U.S. stock indexes turned in a mixed performance during trading on Tuesday. While the Nasdaq and the S&P 500 gave back ground, the narrower Dow climbed to a new record closing high.
The tech-heavy Nasdaq showed a significant pullback, slumping 307.60 points or 1.2 percent to 26,376.34. The S&P 500 also fell 42.94 points or 0.6 percent to 7,511.35, but the Dow rose 328.64 points or 0.6 percent to 51,999.67.
JPMorgan Chase (JPM) helped lead the Dow higher, surging by 3.7 percent, while Visa (V), Home Depot (HD) and 3M (MMM) also posted strong gains.
The pullback by the Nasdaq and the S&P 500 may have reflected profit taking following recent strength in the markets.
Optimism about an end to the monthslong U.S.-Iran contributed to the recent recovery, but some traders looked to cash in on the gains as they wait for the peace deal to be finalized.
Substantial weakness among semiconductor stocks also weighed on the Nasdaq, with the Philadelphia Semiconductor Index plunging by 5.7 percent after ending the previous session at a record closing high.
Networking stocks also showed a substantial move to the downside, dragging the NYSE Arca Networking Index down by 2.5 percent.
Outside of the tech sector, an extended nosedive by the price of crude oil weighed on oil service stocks, resulting in a 2.4 percent slump by the Philadelphia Oil Service Index.
Telecom stocks also saw notable weakness on the day, while gold, banking and housing stocks showed strong moves to the upside.
The mixed performance on Wall Street also came as traders looked ahead to the Federal Reserve's monetary policy announcement on Wednesday.
The Fed is widely expected to leave interest rates unchanged, but the accompanying statement and new Chair Kevin Warsh's post-meeting comments could impact the outlook for rates.
'Investors will be looking for clues about how Warsh intends to navigate an economy where inflation remains above target, growth is still resilient and AI-related investment continues to generate strong demand,' said Daniela Hathorn, Senior Market Analyst at Capital.com.
She added, 'The fall in oil prices gives policymakers more flexibility, but underlying inflation pressures have not disappeared.'
On the inflation front, a report released by the Labor Department showed import prices in the U.S. shot up by much more than expected in the month of May.
The Labor Department said import prices jumped by 1.9 percent in May after leaping by an upwardly revised 2.0 percent in April.
Economists had expected import prices to increase by 1.0 percent compared to the 1.9 percent jump originally reported for the previous month.
The report also said the annual rate of import price growth accelerated to 6.7 percent in May, reflecting the largest year-over-year advance since August 2022.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Tuesday. Japan's Nikkei 225 Index crept up by 0.1 percent, while China's Shanghai Composite Index edged down by 0.1 percent.
Meanwhile, the major European markets all moved to the upside on the day. The French CAC 40 Index advanced by 0.8 percent, the U.K.'s FTSE 100 Index rose by 0.6 percent and the German DAX Index inched up by 0.1 percent.
In the bond market, treasuries moved notably higher over the course of the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, slid 4.1 basis points to 4.428 percent.
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