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The Dow Jones Industrial Average rose to a record high on Tuesday as investors rotated out of chipmakers and into cyclical stocks amid declining oil prices.

The 30-stock index advanced 328.64 points, or 0.64%, for a record close of 51,999.67. It scored a new all-time intraday high of 52,190.29 in the session. The S&P 500 fell 0.57% and ended at 7,511.35, while the Nasdaq Composite pulled back 1.15% to 26,376.34.

Pulling down the tech-heavy Nasdaq, a number of chip stocks suffered losses Tuesday. Advanced Micro Devices dropped more than 7%, while Broadcom fell 4%. Micron Technology shed 6%. Nvidia lost more than 2%.

Elsewhere, oil prices extended their drop from the prior trading day. Brent crude futures fell 5.06% to close at $78.96 a barrel. U.S. West Texas Intermediate futures declined 5.82% to $76.05 a barrel. It was the first settle below $80 a barrel for both since early March.

As oil dipped further, shares of Caterpillar led industrials higher, while JPMorgan Chase was a leader among banks higher as investors bet that lower energy prices will spur a re-acceleration in the U.S. economy. Caterpillar was up more than 1%, while JPMorgan advanced more than 3%.

SpaceX also continued to be a standout with its nearly 5% pop, a move that added to its sharp gains since going public last week. With its gains, SpaceX had at one point surpassed both Microsoft and Amazon in market cap during the session. The company priced its initial public offering at $135. It closed at $201.80.

The major averages are building on a winning session from Monday, which occurred on the heels of President Donald Trump announcing that the U.S. and Iran had reached a deal to end the war in the Middle East. Pakistani Prime Minister Shehbaz Sharif said that both sides have declared the termination of their military operations on all fronts, with an official signing ceremony to take place this Friday in Switzerland.

Trump also said that the key Strait of Hormuz passageway would reopen on Friday, sending oil prices down nearly 5% on Monday. He later clarified Tuesday that the strait will remain toll free beyond the initial 60-day period.

"We're not out of the woods yet," said Andy Goldberg, chief investment strategist at Nomura Asset Management International.

"If all of a sudden oil prices were to come down quickly, the headline inflation number will come down, but at the same time, it'll put a lot of money back in consumers' pockets right at a time where they're feeling pretty good, and that's how you can get some more inflation," he added. "[Federal Reserve Chair Kevin] Warsh has a balancing act on his hands."