Dow Hits Record as Chip Sell-Off Pulls S&P, Nasdaq Lower

The Dow Jones Industrial Average climbed to a record while the S&P 500 and Nasdaq fell as traders booked profits in semiconductor and large-cap tech stocks and oil moved lower ahead of the Federal Reserve’s two-day meeting under Chair Kevin Warsh.

Semiconductor names led declines. Nvidia fell 1.47%, Advanced Micro Devices slid 4.22%, Micron lost 2.89%, Broadcom dropped 3.79% and Intel tumbled 5.62%. Losses among these heavily weighted technology stocks pushed the S&P 500 and Nasdaq lower even as the Dow rose.

Indexes moved unevenly: the Dow rose about 0.9% to near 52,170, the S&P 500 slipped roughly 0.25% to around 7,540 and the Nasdaq fell about 0.61%. The Russell 2000 small-cap index declined 0.47%.

Brent crude fell below $80 a barrel, its weakest level since early March after the United States and Iran reached a deal to ease tensions. Energy shares declined 0.57% as oil producers faced pressure from the lower price. Industrials gained 2.88% and financials rose 1.41% as lower fuel and input costs affected transport and manufacturers. Utilities rose 1.26% as some investors moved toward steadier income sources.

Market breadth was mixed, with decliners at about 50.7% and advancers at 46.0%. New highs outnumbered new lows, indicating price gains were concentrated in specific sectors rather than broad-based across the market. On charts, the S&P 500 is holding a bull-flag breakout from Monday. The index would need a daily close above 7,597 to reopen a path toward the 7,622 record; downside technical support sits near 7,376 and 7,240.

Corporate headlines influenced trading. SpaceX rose about 12% after announcing a $60 billion all-stock acquisition of AI coding firm Cursor and, briefly, overtook another large U.S. company to become the fifth-largest U.S. company by market value; the company reported a loss last year. Western Digital gained more than 7% after Morgan Stanley raised its price target and on signs of stronger demand for AI-focused storage.

Economic data added to the market backdrop. Housing starts fell 15.4% in May to a 1.177 million annual rate, the weakest pace since 2020, a decline tied to higher mortgage rates. A recent poll showed most participants expect the Federal Reserve to hold interest rates steady at Wednesday’s decision.

Investors are focused on the Fed’s rate decision, Chair Kevin Warsh’s first press conference and the Fed’s dot plot showing officials’ projections for rates through 2026. Traders are also watching whether weakness in the chip sector is temporary profit-taking or an extended rotation away from growth-oriented, rate-sensitive names, and whether S&P 500 closes occur above or below the identified technical levels.