U.S. Stocks Mixed on Tuesday to Begin Holiday-Shortened Week

U.S. stocks traded mixed on Tuesday, with major indices posting modest gains or losses in a relatively quiet session. The holiday-shortened week has begun with investors focusing on potential policy moves by the Federal Reserve and President Donald Trump.

* The benchmark S&P 500 ticked up 0.2% to close at a fresh record high of 6,129.58.
* The Dow Jones Industrial Average edged higher by 0.02%.
* The Nasdaq Composite gained 0.19%.

Market movers:

* Chip stocks and tech companies led the gains, with Intel (INTC) soaring 16% on rumors of potential deals with rivals Broadcom and TSMC.
* Meta Platforms (META) faced selling pressure, with its 20-session winning streak in jeopardy due to a 3% decline.
* Nike (NKE) jumped 5% after announcing a partnership with SKIMS.
* Super Micro Computer (SMCI) rose over 16% on a positive business update and efforts to avoid Nasdaq delisting.

Fed uncertainty:

Investors remain cautious as they await the release of minutes from the Fed's January meeting on Wednesday. Fed officials have signaled a commitment to maintaining current interest rates to combat inflation. Treasury yields rose as investors sought clarity on the potential for rate cuts this year.

Other notable events:

* U.S.-Russia talks on ending the Ukraine war have commenced, with teams from both countries meeting in Saudi Arabia.
* Earnings season continues, with reports expected from 46 S&P 500 companies this week, including Alibaba (BABA).
* Elon Musk's efforts to access sensitive data from the Social Security Administration have raised concerns about the potential impact on the program's stability.

Technical analysis:

* The S&P 500 outperformed the "Magnificent Seven" tech stocks, with nearly 46% of its companies outperforming the index year-to-date.
* The strong U.S. dollar has presented challenges for tech giants with significant overseas operations.
* Homebuilder confidence fell to a five-month low, as builders navigate concerns over tariffs, high mortgage rates, and housing costs.

Overall, the market remains volatile as investors navigate a range of factors, including policy decisions, geopolitical tensions, and earnings reports.