The New York Stock Exchange ended the day with a mixed performance on Tuesday.
The Dow Jones Industrial Average, comprising 30 large-cap stocks, and the S&P 500, which broadly reflects market conditions, rebounded in the latter part of the session, securing gains for the second straight day.
However, the tech-heavy Nasdaq slipped back into negative territory after a day of gains, weighed down by weakness in several major tech stocks, notably Tesla.
Meta Platforms have been rising for 17 consecutive days. In contrast, Tesla shares tumbled more than 6% amid ongoing controversies surrounding CEO Elon Musk.
Fed Chair Powell Urges Caution on Rate Cuts
Wall Street faced pressures following Federal Reserve Chair Jerome Powell’s comments at the Senate Banking Committee.
With U.S. President Donald Trump’s tariff threats, investor confidence hit as Powell signaled a more cautious approach to potential rate cuts.
However, as the Q&A session with lawmakers progressed, analysts noted that Powell’s stance hadn’t significantly shifted from last month’s Federal Open Market Committee (FOMC) meeting. This led to narrowing losses, ultimately allowing the Dow and S&P 500 to rebound.
The Dow Jones Industrial Average closed up 123.24 points (0.28%) at 44,593.65, while the S&P 500 rose 2.06 points (0.03%) to finish at 6,068.50.
In contrast, the Nasdaq fell 70.41 points (0.36%) to 19,643.86.
Tesla Nosedives as Meta Reaches New Heights
The M7 big tech stocks showed mixed performances.
Tesla extended its losing streak to five consecutive sessions, plummeting $22.23 (6.34%) to close at $328.50.
Tesla’s recent 10% drop from its recent peak has already entered correction territory, and its latest 6% decline pushed its five-day losses beyond 16%. The stock is now on the edge of bear market territory, defined as a 20% drop from recent highs.
In stark contrast, Meta continued its remarkable upward trajectory, rising $2.40 (0.33%) to close at $719.80.
Meta has logged 17 consecutive trading days of gains since January 17, setting new all-time highs for 14 straight sessions starting January 23.
The stock’s total gain since January 17 is approaching 17.75%.
Apple shares also rallied, jumping $4.97 (2.18%) to $232.62.
CNBC reported that Apple is collaborating with Chinese tech giant Alibaba on AI development, which could smooth the path for regulatory approval in China.
This partnership fuels optimism about a potential rebound in iPhone sales in China, Apple’s third-largest market after the U.S. and Europe.
SMCI Tumbles as Intel Surges
Semiconductor companies Intel and AI server manufacturer Super Micro Computer (SMCI) saw a contrast in performance.
Intel shares soared following Vice President JD Vance’s speech at the AI Action Summit in Paris, where he emphasized an “AI America First” strategy.
Vance outlined plans for the U.S. to build robust AI systems using domestically produced AI semiconductors.
This fueled expectations that the Trump administration would support Intel’s foundry division to boost U.S. AI chip production.
Intel’s stock surged 10% intraday before settling with a gain of $1.20 (6.07%) to close at $20.97.
SMCI, on the other hand, which had soared nearly 17% the previous day, plummeted.
SMCI’s stock reversed course ahead of its scheduled “business update” following the close, which was related to the submission of its financial report for the last fiscal year.
SMCI shares plunged $4.04 (9.47%) to $38.61.
Oil Prices Climb for Third Straight Day
Global oil prices extended their winning streak to three consecutive sessions.
Supply concerns continued to drive prices higher.
The ongoing rally was fueled by worries about potential disruptions to oil production in Russia and Iran resulting from U.S. sanctions.
Brent crude, the global benchmark, rose $1.13 (1.49%) to settle at $77.00 per barrel for April delivery.
West Texas Intermediate (WTI), the U.S. benchmark, gained $1.00 (1.38%) to close at $73.32 per barrel for March delivery.
