Traders work at the New York Stock Exchange on June 3, 2026.
NYSE
The Dow Jones Industrial Average rallied on Tuesday, buoyed by strong earnings, falling oil prices and a rotation out of semiconductors into other parts of the market.
The Dow climbed 537.24 points, or 1.03%, to 52,747.32. The blue-chip index posted a third straight winning day. Sherwin-Williams rose 8% on the back of better-than-expected results for Q2 to lead the benchmark higher. Beverage giant Coca-Cola popped 5% on a top- and bottom-line beat, plus a hike to its full-year outlook. The S&P 500 added 0.21% to end at 7,428.78.
The Nasdaq Composite edged down 0.22% and closed at 24,876.91. Chips lagged, with the VanEck Semiconductor ETF (SMH) off more than 3% and tumbling for a fourth straight day. as Micron and AMD fell more than 8%.
Falling oil prices lent the market some support, as Iran discussed the Strait of Hormuz with Saudi Arabia and Oman. West Texas Intermediate crude futures fell about 4% to settle at $79.26 per barrel. International Brent crude shed 4.8% to end at $84.09.
The market’s moves reflected a broader rotation that’s been taking place within the market in recent weeks in which so-called old-economy sectors are getting a boost while high-flying technology names are taking a hit.
The Technology Select Sector SPDR Fund (XLK) hit its lowest level since May 7. At the same time, the State Street Health Care Select Sector SPDR ETF (XLV) and Financials ETF (XLF) surged to record highs, led by gains in insurance stocks.
“It’s been a really broad-based rotation,” Ross Mayfield, an investment strategist at Baird, told CNBC. “This momentum unwind has been a story that’s been playing out for six to eight weeks now, and it has a lot more to do with the technicals of the market than any fundamental changes.”
However, that rotation into more cyclical and occasionally rate-sensitive sectors such as consumer discretionary will depend on oil prices and interest rates staying around their current levels, he said.
“It’s hard to make a full case for you know consumer discretionary or financials or industrials continuing to catch a bid if rates are heading higher across the curve and oil is pushing up towards $100 a barrel.” Mayfield said.
A Federal Reserve rate decision is due Wednesday. Investors expect that the central bank will remain on hold, but will seek greater clarity on the path forward for monetary policy. Fed funds futures were last pricing in a quarter point hike in September, according to the CME FedWatch Tool.
Tech earnings remain top of mind for investors this week, as traders await results from Amazon, Apple, Meta Platforms and Microsoft.
