NEW YORK: The Nasdaq hit an intraday record high on Tuesday, underpinned by gains in heavyweight technology stocks and potential negotiations over the Iran conflict, while declines in big banks limited broader market gains.
Investors pinned their hopes on comments from Iran and US officials reviving negotiations to end their conflict, while Saudi Arabia also restarted operations at its East-West Pipeline, easing some concerns about oil supply.
Still, President Donald Trump, in his United Nations General Assembly speech, said he could “annihilate the Islamic Republic”, suggesting tensions could flare up anytime.
Oil prices were choppy near USD100 a barrel, while the yield on the benchmark 10-year Treasury note hovered at 4.9 percent - both near levels that have weighed on markets in recent days.
The focus is also on a US-China summit on Thursday, with traders hoping the trade truce with Beijing could be extended and talks could touch upon AI regulation.
At 12:06 p.m. ET the Dow Jones Industrial Average fell 290.64 points, or 0.56 percent, to 51,769.52, the S&P 500 lost 4.68 points, or 0.06 percent, to 7,760.02 and the Nasdaq Composite gained 63.68 points, or 0.24 percent, to 27,185.77.
Eight of the 11 S&P 500 sectors gained in choppy trading, with materials leading with a 1 percent rise. Technology stocks edged up with Apple up about 1 percent.
Meta edged up 0.9 percent and added to Monday’s 11 percent jump as investors bet on its new AI agent Muse that analysts said could open a new revenue stream for the social media giant.
The S&P 500 financials sector led sectoral declines with a 2 percent fall. Big lenders such as JPMorgan Chase and Wells Fargo were down nearly 4 percent each.
Art Hogan, chief market strategist at B. Riley Wealth, pointed to comments earlier this month by top bosses in the sector hinting at earnings and revenues growing softer than the quarter before.
On the policy front, Boston Fed President Susan Collins wrote she supported last week’s central bank interest rate increase amid the risks that future inflation will be above its 2 percent target.
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