U.S. stocks were a mixed bag at midday Tuesday, but the story wasn't about a broad selloff — it was about a rotation. Money flowed out of high-flying technology stocks and into financials, utilities, and industrials, cooling the tech-led rally while pushing the Dow Jones Industrial Average to fresh record highs.

Meanwhile, Federal Reserve Chair Kevin Warsh is preparing to gavel in his first policy meeting — a two-day gathering that concludes Wednesday. Futures price a roughly 97% chance the Fed holds its benchmark rate at 3.5%-3.75%, but markets still assign about 70% odds to at least one hike before year-end, leaving Warsh's debut press conference as the session's gravitational center.

Crude Extends Slide

West Texas Intermediate fell roughly 4% to around $77 a barrel, a two-month low, as the framework deal to reopen the Strait of Hormuz — a memorandum of understanding due to be signed Friday in Switzerland — eased the war-risk premium that had gripped energy markets since the spring. Brent traded near $80.

Across U.S. equity markets by midday Tuesday, the split was stark.

The S&P 500 slipped about 0.2% to 7,542.80, while the Dow Jones Industrial Average outperformed, rising 1.0%, or roughly 515 points, to a record 52,185.49 as banks and industrials did the heavy lifting.

The Nasdaq 100 was the laggard, falling about 1.4% to 30,118.05 as megacap tech retreated. The small-cap Russell 2000 dipped about 0.3% to 2,957.29, while the Cboe Volatility Index eased 2.0% to 15.87, signaling a calm tape beneath the rotation.

Tuesday's Performance In Major US Indices

According to market data:

• The Vanguard S&P 500 ETF (VOO) slipped 0.2%.
• The SPDR Dow Jones Industrial Average ETF Trust (DIA) rose 1.0%.
• The Invesco QQQ Trust (QQQ) fell 1.4%.
• The iShares Russell 2000 ETF (IWM) eased 0.3%.

Banks And Utilities Lead As Tech Gives Back Monday's Surge

The Financial Select Sector SPDR Fund (XLF) was the strongest corner of the market, up about 1.6%, as banks rallied into the Fed decision.

Defensives and cyclicals joined the bid, with the Utilities Select Sector SPDR Fund (XLU) and the Industrials Select Sector SPDR Fund (XLI) each adding about 1.3% and the Materials Select Sector SPDR Fund (XLB) up 0.8%.

The laggards told the rotation story. The Technology Select Sector SPDR Fund (XLK) was the day's worst performer, down about 1.7% as megacap and chip names retreated after Monday's run.

The Energy Select Sector SPDR Fund (XLE) slipped roughly 0.7% in sympathy with the crude rout.

At the industry level, the VanEck Semiconductor ETF (SMH) bore the brunt of the tech pullback, while the SPDR S&P Regional Banking ETF (KRE) caught a bid alongside the broader financials trade.

Among The Day's Biggest Advancers

Talen Energy Corp. (TLN) jumped about 7.2% after closing a $2.55 billion cash-and-stock deal for three Western PJM gas plants that it said is immediately accretive, adding more than 15% to cash flow per share.

Moderna Inc. (MRNA) climbed roughly 7.3% after unveiling an organizational revamp to prepare for as many as three product launches in 2027 and 2028, with investors also eyeing its closely watched melanoma vaccine trial readout later this year.

Western Digital Corp. (WDC) gained roughly 7.0%, after Monday's 16% rally.

The Deepest Losses Came From Chemicals

Huntsman Corp. (HUN) cratered about 17.9% and Olin Corp. (OLN) dropped roughly 7.5% after the two announced an all-stock merger to create a new chemicals company. Investors greeted the deal with skepticism, given both firms' exposure to soft, cyclical end-markets.

Cboe Global Markets, Inc. (CBOE) slid about 6.2% as competitors launched high-profile SpaceX equity options across rival exchanges, stoking fears of lost market share.

Tuesday's Russell 1000 Top Gainers

Tuesday's Russell 1000 Top Losers