Wall Street closed mostly flat on Tuesday after Monday's AI-driven surge, as a slide in financial stocks offset continued strength in technology shares and falling oil prices. The S&P 500 edged higher while the Dow Jones Industrial Average slipped, and the Nasdaq Composite touched a fresh intraday record. Geopolitics remained top of mind, with President Trump telling the United Nations that a U.S.-Iran deal would come after the midterm elections.
Indices diverge after Monday's rally
The S&P 500 rose 0.1% to 7,770.76 points at 15:24 ET, while the Nasdaq Composite climbed 0.5% to 27,256.88 points, taking out a new all-time intraday high. The Dow Jones Industrial Average fell 0.3% to 51,919.44 points, dragged down by weaker financial names.
According to Michael O'Rourke, chief market strategist at Jones Trading: "Major indices are flat." He said single-stock moves were driving the day's action instead.
Muse mania lifts the AI trade
The rally traces back to Meta Platforms, whose new agentic AI assistant Muse has become the top free app on the Apple App Store since its release earlier this month. Unlike conventional chatbots, Muse executes autonomous, multi-step tasks such as booking travel and managing calendars on users' behalf.
Meta's Class A shares had surged more than 11% on Monday, their best session since April 2025. AMD and Intel also gained as chipmakers tied to AI hardware, and the Philadelphia Semiconductor Index climbed 4.3%. On Tuesday, the index was last up 1.4%, while the S&P 500 technology sector added 0.6%.
Trump ties Iran deal to midterms
Geopolitics kept investors on edge as Trump addressed the UN General Assembly, saying Washington and Tehran would strike a deal after November's midterm elections. He added that Iran was watching how he performs and that he gave no credence to the polls on the conflict.
Oil prices slipped Tuesday, extending a decline as Saudi Arabia ramped up east coast exports to offset the damaged East-West Pipeline. Investors are also watching Chinese President Xi Jinping's visit to Washington on Thursday, his first state visit of Trump's second term, expected to touch on AI safety and a trade truce due to expire in November.
Source: Investing.com
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