Dow hits record high as oil drops and SpaceX surges in US markets

New York: U.S. stock markets advanced on Tuesday, with the Dow Jones Industrial Average reaching a record intraday high, supported by falling oil prices and strong gains in major stocks including SpaceX.

The Dow rose 0.70 percent to 52,031.80, while the S&P 500 and Nasdaq posted modest gains of 0.10 percent and 0.13 percent respectively.

Oil prices drive market sentiment

Investor sentiment was boosted by a decline in oil prices, which fell to near three-month lows following optimism around a preliminary U.S.-Iran agreement. The easing of geopolitical tensions contributed to broader market confidence and lifted equities.

However, market participants remain cautious, noting that it may take time for stability to return to global shipping routes, particularly in the Strait of Hormuz.

SpaceX and tech movement

Shares of SpaceX surged nearly 9.5 percent, pushing the company past Amazon in market value to become the fifth-most valuable U.S. firm.

The rally followed the company’s announcement of a $60 billion acquisition of software firm Anysphere, aimed at expanding its presence in enterprise artificial intelligence.

Meanwhile, memory chip stocks also posted strong gains, with Western Digital rising 9 percent and Seagate Technology up 6 percent. Despite this, the broader S&P technology index slipped slightly after a strong rally in the previous session.

Sector performance

Seven of the 11 major S&P sectors moved higher, with financial stocks leading gains. Goldman Sachs rose 1.3 percent, while JPMorgan and Bank of America gained 1.8 percent and 1.2 percent, respectively.

The energy sector declined by 0.4 percent in line with falling oil prices.

Focus on Federal Reserve

Investors are now turning their attention to the Federal Reserve’s upcoming policy decision. The central bank is widely expected to hold interest rates steady in the 3.50 to 3.75 percent range.

Markets are closely watching the first policy outlook under Fed Chair Warsh, particularly comments on inflation, economic growth and employment trends.

Analysts noted that inflation remains above the Fed’s 2 percent target, and expectations around future policy direction will play a key role in shaping market sentiment.

Individual stock movements

Qualcomm shares rose 3.6 percent following reports of potential talks to acquire AI chip startup Tenstorrent for up to $10 billion.

Robinhood gained 1.1 percent after announcing plans to cut 10 percent of its workforce.

Overall market breadth was positive, with advancing stocks outnumbering declines on both the New York Stock Exchange and the Nasdaq.

Market outlook

The S&P 500 remains close to record highs after recovering from earlier declines linked to concerns about tech valuations and geopolitical tensions.

While recent developments have supported market gains, investors remain focused on upcoming economic data and policy signals that could influence the direction of equities in the coming months.