Dow Hits Record as AI Stocks Slip, SpaceX Extends Rally Ahead of Fed Meeting

Market close

U.S. stocks finished mixed on Tuesday, June 16, 2026, with the Dow Jones Industrial Average setting another record even as technology shares came under pressure.

The Dow rose 0.6% to 51,999.67, gaining 328.64 points, according to AP. The S&P 500 fell 0.6% to 7,511.35, the Nasdaq Composite dropped 1.2% to 26,376.34, and the Russell 2000 declined 0.9% to 2,939.19.

AP said losses in leading AI stocks helped weigh on the Nasdaq and broader tech trade. MarketWatch also reported that the Dow closed above 52,000 for the first time, while semiconductors and other tech names dragged on the S&P 500 and Nasdaq.

The day’s backdrop also included lower oil prices, which helped support the blue-chip rally by easing some inflation concerns.

AI and chip stocks weaken

The session highlighted a split between economically sensitive and defensive-leaning parts of the market and the higher-valuation growth names that have led recent gains.

AP said the weakness in AI leaders was a major factor behind the Nasdaq decline. Investor's Business Daily said chip and optical stocks were among the softest areas, with Lumentum falling sharply.

That pattern matters because the market has been rewarding companies tied to artificial intelligence and semiconductors for much of the past year. Tuesday's trading suggested those names remain vulnerable when momentum eases or valuation pressure returns.

SpaceX keeps rising

SpaceX extended its post-IPO momentum for a third trading day, rising 4.8% and closing around $201.68 to $201.80, depending on the source.

MarketWatch said the stock drew the busiest first day of options trading ever, with Cboe citing roughly 10,000 contracts per minute early in the session and nearly 2 million contracts traded by the end of the day.

The company’s market value briefly passed Amazon and at one point briefly topped Microsoft during the session, underscoring how quickly it has become a focal point for traders and options activity.

The size of the moves also highlights how volatile the stock could remain in the early days after its public debut, particularly while positioning and price discovery are still underway.

Fed meeting ahead

Investors were also looking ahead to the Federal Reserve’s two-day meeting beginning June 17.

Business Insider said Kevin Warsh is set to lead his first interest-rate decision as Fed chair, and that markets expect rates to hold steady. That leaves traders focused less on the immediate decision than on any shift in tone, bias or guidance.

IBD said Warsh's first post-meeting press conference will be closely watched for clues about how the Fed is framing inflation, growth and the path of policy going into the second half of the year.

What traders are watching

The main question now is whether Tuesday's AI and chip weakness broadens into a wider tech correction or remains limited to a narrower group of high-valuation names.

Traders are also watching whether SpaceX can sustain its rally once the initial trading frenzy fades and whether the stock remains a major source of market attention after the first wave of options activity.

More broadly, the market is weighing whether the Dow's strength can continue to offset pressure in tech, and whether the Fed meeting changes expectations for rates, yields and risk appetite.