The Dow Jones Industrial Average dropped more than 200 points on Tuesday as losses in Cisco Systems and JPMorgan Chase outweighed gains elsewhere, even as the S&P 500 and Nasdaq held near session highs on renewed U.S.-Iran peace hopes. Oil extended its slide toward $95.45 a barrel while Apple shares pushed closer to a fresh buy point.
Dow reverses as blue chips diverge
The Dow Jones Industrial Average lost more than 200 points, or 0.5% in Tuesday trading, reversing an earlier advance. Amgen surged more than 4% and helped cushion the index, while Sherwin-Williams and Alphabet added 1% to 2% gains. Cisco Systems and JPMorgan Chase each dropped more than 4% and dragged on the blue-chip gauge.
Elsewhere, the broader market told a different story. The S&P 500 traded essentially flat after giving up its opening highs. The Nasdaq composite, however, climbed 0.4% to fresh highs in morning trading.
Oil slides on Iran talk
West Texas Intermediate crude slipped to around $95.45 a barrel and could extend its slide to a fifth straight losing session. Saudi Arabia is reportedly looking to reopen a critical pipeline this week. According to a senior Iranian official cited by Japanese news wire Kyodo News, Iran offered to reopen the Strait of Hormuz within seven days if the U.S. takes initial steps toward easing military pressure.
The 10-year Treasury yield edged lower to 4.96%. Chevron shares fell more than 1% in premarket trading amid the continued drop in crude, giving up their cup-with-handle entry after Monday's 2.8% sell-off.
Apple nears a fresh buy point
Apple shares climbed more than 1% as they approach a cup-base buy point of 344.57. The stock is pulling away from its short-term moving averages after testing support at the 50-day line on Sept. 9.
The stock carries the best-possible IBD Composite Rating of 99, with shares up nearly 26% so far this year against a gain of less than 14% for the S&P 500 over the same stretch. Earnings are expected to rise 18% this year, with growth seen slowing to 9% in 2027.
Investors now turn to Wednesday's preliminary S&P Global manufacturing and services data. Trump and Xi Jinping are also set to hold their Washington summit on Thursday.
Source: Investor's Business Daily
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