The Dow Jones Industrial Average fell about 118 points, or 0.2%, after closing at a record high in the previous session. The S&P 500 edged up 0.3%, while the Nasdaq Composite gained 0.6% in early trading.
Markets fluctuated around the flatline at the open as investors looked ahead to the close of the first half of 2026. On Monday, the Dow closed above the 52,000 mark for the first time, extending its recent rally.
Oil prices moved higher, with US West Texas Intermediate (WTI) crude trading near $71 a barrel and Brent crude hovering around $73 a barrel. Investors continued to monitor the possibility of fresh US-Iran talks in Qatar, while assessing the broader geopolitical outlook in the Middle East.
Financial stocks came under pressure after Oppenheimer downgraded several major US banks. Shares of Goldman Sachs and Morgan Stanley fell more than 1% after being downgraded to Underperform from Perform. Bank of America and Citigroup also declined over 1% after their ratings were lowered to Perform from Outperform.
Despite Tuesday’s subdued trading, the major US indexes are poised to post solid gains for both the quarter and the first six months of the year. The Dow is up 8.6% so far in 2026, putting it on track for its strongest first-half performance since 2021, when it advanced 12.7%. The S&P 500 has gained more than 8%, while the Nasdaq Composite has climbed 11.1%. The Russell 2000 has surged more than 21%, positioning it for its best first-half return since 1991, according to CNBC.
Technology stocks have remained a key driver of market gains. The Technology Select Sector SPDR Fund (XLK) is on track for its strongest first half since 2023, supported by continued investor enthusiasm for companies building artificial intelligence infrastructure.
Investor sentiment has also been supported by a recent US Supreme Court ruling that preserved the Federal Reserve’s independence, along with hopes that renewed diplomatic engagement between the United States and Iran could help ease geopolitical tensions.
