U.S. stock indexes concluded Tuesday’s trading session mostly lower, with the technology-heavy Nasdaq 100 experiencing a notable decline as chipmakers retreated significantly. In contrast, the Dow Jones Industrial Average defied the broader market weakness to close at a new all-time high, painting a mixed picture for investors on June 16, 2026, as attention turned to the Federal Open Market Committee (FOMC) meeting.
The S&P 500 Index ($SPX) (SPY) closed down -0.57%, reflecting the broader market’s struggles. The Nasdaq 100 Index ($IUXX) (QQQ) bore the brunt of the tech sector’s decline, falling -1.89%. Conversely, the Dow Jones Industrial Average ($DOWI) (DIA) posted a gain of +0.64%, securing a new all-time high. Futures markets mirrored this trend, with June E-mini S&P futures (ESM26) falling -0.60% and June E-mini Nasdaq futures (NQM26) dropping -1.87%.
Chipmakers Lead the Retreat
The primary drag on the broader market, particularly the Nasdaq, came from a widespread retreat among chipmakers. Marvell Technology (MRVL) led the losers within the Nasdaq 100, closing down more than -9%. Intel (INTC) also saw a significant decline, falling more than -8%. Other major players in the semiconductor sector experienced substantial losses, including Advanced Micro Devices (AMD) and KLA Corp (KLAC), both down more than -7%. Micron Technology (MU) fell more than -6%, while Lam Research (LRCX) closed down over -5%. Microchip Technology (MCHP), ASML Holding NV (ASML), Broadcom (AVGO), and NXP Semiconductors NV (NXPI) each saw declines exceeding -4%. ARM Holdings NV (ARM), Applied Materials (AMAT), and Qualcomm (QCOM) also finished down more than -3%.
Broader Market Headwinds and Economic Data
Beyond chipmakers, weakness in other technology sub-sectors contributed to the market’s negative sentiment. Software stocks were broadly lower, with Atlassian Corp (TEAM) falling more than -3%, and ServiceNow (NOW), Oracle (ORCL), and Workday (WDAY) each declining more than -2%. Microsoft (MSFT), Salesforce (CRM), Datadog (DDOG), and Palantir Technologies (PLTR) also saw losses exceeding -1%. Cybersecurity stocks faced pressure as well, with Zscaler (ZS) down more than -2%, and Okta (OKTA), Fortinet (FTNT), CrowdStrike Holdings (CRWD), Palo Alto Networks (PANW), and Cloudflare (NET) all closing down over -1%.
Energy producers also slid on Tuesday as crude oil prices plunged. This sector-wide decline was evident in companies like Haliburton (HAL), which closed down more than -2%, and APA Corp (APA), Valero Energy (VLO), Baker Hughes (BKR), ConocoPhillips (COP), Diamondback Energy (FANG), Devon Energy (DVN), and Occidental Petroleum (OXY), all down more than -1%. Adding to the market’s concerns were weaker-than-expected U.S. housing starts and building permits reports. May housing starts fell -15.4% month-over-month to a six-year low of 1.177 million, significantly below expectations of 1.430 million. May building permits, a key indicator for future construction, also declined -0.7% month-over-month to 1.413 million, missing the consensus estimate of 1.418 million.
Easing Inflation Concerns and Geopolitical Developments
Despite the broad market weakness, some factors provided underlying support. Crude oil prices dropped another -5% to a 3.5-month low, which helped ease inflation expectations. This decline was largely driven by the U.S. and Iran reaching an agreement to end their conflict and reopen the Strait of Hormuz, a development that had stoked risk-on sentiment in asset markets on Monday. WTI crude oil prices (CLN26) sank more than -5% on Tuesday, with losses accelerating after reports indicated Iran would be allowed to sell crude oil immediately. Goldman Sachs subsequently cut its price forecast on Brent crude to $80 a barrel for Q4, down from $90, anticipating Persian Gulf crude exports to return to pre-war levels by the end of July, a month earlier than previously expected.
The 10-year T-note yield fell -5 basis points to 4.42%, with September 10-year T-notes (ZNU6) closing up +9 ticks. T-notes rallied as plunging crude oil prices reduced inflation expectations and the weaker U.S. housing data supported fixed income. European government bond yields also moved lower, with the 10-year German bund yield falling to an eight-week low of 2.920% and the 10-year UK gilt yield declining -2.4 basis points to 4.788%. Overseas stock markets settled mixed, with the Euro Stoxx 50 up +0.45%, China’s Shanghai Composite down -0.11%, and Japan’s Nikkei-225 Stock Average rising to a new all-time high, up +0.13%.
FOMC Meeting Under New Leadership
Market focus is now firmly on the two-day FOMC meeting, which commenced on Tuesday. This marks the first meeting under the leadership of new Fed Chair Kevin Warsh. While the Federal Reserve is widely expected to keep interest rates unchanged, the spotlight will be on Mr. Warsh’s post-meeting press conference and the central bank’s updated outlook on inflation. Markets are currently discounting only a 5% chance of a +25 basis point rate hike at the conclusion of this meeting, with hopes for a less hawkish stance given the anticipated decline in oil prices.
Individual Stock Performance Highlights
Beyond the major sector movements, several individual stocks saw significant shifts. Huntsman (HUN) closed down more than -17% following its agreement to merge with Olin in an all-stock deal. Dave & Buster’s Entertainment (PLAY) fell more than -6% after reporting Q1 revenue of $559.2 million, missing the consensus estimate of $580.3 million. Tractor Supply Co (TSCO) also declined more than -2% after several analysts cut their price targets. On the upside, Take-Two Interactive Software (TTWO) led gainers in both the S&P 500 and Nasdaq 100, closing up more than +6% after Piper Sandler estimated 46 million unit sales for Grand Theft Auto VI upon its launch. Space Exploration Technologies (SPCX) continued its strong performance, rising more than +4% on positive carryover from its record $75 billion initial public offering (IPO) last week, which was heavily oversubscribed. Valmont Industries (VMI) gained more than +2% after projecting ambitious organic net sales and EPS targets for 2029, and Edwards Lifesciences (EW) also rose more than +2% following a positive U.S. government coverage proposal for transcatheter aortic valve replacement.
Tuesday’s trading session underscored a market grappling with conflicting signals: significant weakness in key technology sectors and disappointing domestic economic data contrasted with easing inflation pressures from falling oil prices and a major geopolitical de-escalation. All eyes will now be on Fed Chair Kevin Warsh’s communication following the FOMC meeting for clarity on the monetary policy path ahead.
