Palantir Stumbles, Solar Stocks Rally As Senate Approves Tax Bill: What's Moving Markets Tuesday?

A mixed trading session took shape Tuesday on Wall Street, as investors rotated out of high-flying tech stocks and into lagging sectors.By midday in New York, the Nasdaq 100 dropped 0.7% to 22,500 points, while small caps in the Russell 2000 jumped 1.9% and the Dow Jones Industrial Average climbed 1.2%, reflecting strength in blue-chip and small-cap names. The S&P 500 was flat at 6,200 points.Shares of Palantir Technologies Inc. PLTR fell 4% despite a lack of major news, as investors appeared willing to take some profits following a year-to-date rally of over 70%.Speaking at the European Central Bank's symposium in Sintra, Fed Chair Jerome Powell signaled that most officials still expect to cut interest rates later this year. Notably, Powell rejected the speculation that a July rate cut is off the table, reaffirming the Fed's data-dependent stance. Meanwhile, the U.S. Senate approved President Donald Trump's One Big Beautiful Bill. The U.S. dollar index held steady as the greenback attempted to snap a nine-day losing streak against the euro — the longest stretch of declines since 2003. Treasury yields edged slightly higher, with the 10-year note rising three basis points to 4.26%.On the sector front, materials outperformed, breaking above their 200-day moving average for the first time in 2025. Technology lagged. In industry highlights, solar stocks rallied after the Senate approved a tax-and-spending bill that scrapped a proposed excise tax on renewable energy projects. Upward momentum was seen from Sunrun Inc. RUN, up 10%; SolarEdge Technologies Inc. SEDG, up 9.7% and Enphase Energy Inc. ENPH, up 4%, while the Invesco Solar ETF TAN surged 5.4%.Commodities advanced broadly, with gold gaining 1% to $3,340 per ounce and silver rising 0.5% to $36.20. Copper edged up 0.2%, reaching its highest level since late March, while oil climbed 1% to $65.71 a barrel.Bitcoin BTC/USD softened 1% to $106,000.According to Benzinga Pro data: The Vanguard S&P 500 ETF VOO edged 0.1% up to $568.25. The SPDR Dow Jones Industrial Average DIA rose 0.9% to $444.24. The tech-heavy Invesco QQQ Trust Series QQQ eased 0.7% to $547.62. The iShares Russell 2000 ETF IWM rallied 1.2% to $218.26. The Materials Select Sector SPDR Fund XLB outperformed, up 3%; the Technology Select Sector SPDR Fund XLK lagged, down 0.8%. Read Now: A Sinking Dollar Is Making Your Dream Vacation Way More Pricey This YearPhoto: NicoElNino via Shutterstock