(Updates with final closing prices, trading volume)

* Indexes mixed: Dow up 0.64%, S&P down 0.57%, Nasdaq down

1.15%

* SpaceX surpasses Amazon's ( AMZN ) market value

* Investors await first Fed meeting under Warsh

* Financials lead S&P sector gainers, tech is biggest

laggard

By Sinéad Carew and Sruthi Shankar

June 16 (Reuters) - The Nasdaq Composite and the S&P 500

finished lower on Tuesday under pressure from technology stocks,

while the Dow Jones Industrial Average marked its second

straight record close and SpaceX rallied to become the

fifth-most valuable U.S. company.

After rallying sharply on Monday on optimism about a

U.S.-Iran peace deal, investors in the S&P 500 and Nasdaq took a

breather even as oil prices fell to their lowest levels since

early March.

Shares of SpaceX finished up 4.8% at $201.80, after

hitting a record high of $225.64. The rocket and AI company

ended the session with a market value above that of Amazon ( AMZN )

and briefly surpassed Microsoft's ( MSFT ) value in

morning trading.

While falling oil prices offered some support to equities,

Mark Luschini, chief investment strategist at Janney Montgomery

Scott in Philadelphia, said it was too difficult to build on

recent steep gains in the heavyweight technology sector without

a break. He noted some investor caution ahead of the U.S.

Federal Reserve's policy update due on Wednesday afternoon.

"We had a big move yesterday in the market," said Luschini,

alluding to the S&P 500's 1.65% rally on Monday and Nasdaq's

advance of more than 3%. "We're just digesting some of those

gains and the setup in anticipation of the Fed meeting is always

a little tentative."

The Dow Jones Industrial Average rose 328.64 points,

or 0.64%, to 51,999.67, the S&P 500 lost 42.94 points, or

0.57%, to 7,511.35 and the Nasdaq Composite lost 307.60

points, or 1.15%, to 26,376.34.

TECHNOLOGY LAGS, FINANCIALS RISE

Investors rotated into economically sensitive sectors and

sold richly valued technology stocks on Tuesday. Chip stocks

fell sharply after soaring in the prior three sessions.

Of the S&P 500's 11 major industry sectors, seven ended

higher. Financials, up 1.5%, and industrials,

up 0.7%, were the leading gainers. Technology was the

biggest laggard, down 2.3%. The Philadelphia semiconductor index

underperformed massively with a 5.7% drop.

U.S. oil futures settled down 5.8% as some details

emerged about the U.S.-Iran interim deal, which is expected to

extend a tenuous ceasefire announced in April by another 60 days

and reopen the Strait of Hormuz, which Iran has effectively

blocked since the U.S. and Israel attacked Iran in February.

U.S. President Donald Trump said the agreement would rule

out a nuclear weapon for Tehran, while a U.S. official said that

it allows Iran to sell oil upon signing.

The war had pushed up oil prices since it started in late

February, and fanned worries about sticky inflation, which

informs the U.S. central bank's policy on interest rates.

Investors are widely expecting the Fed to hold interest rates at

its current 3.50% to 3.75% range on Wednesday, though they will

pay close attention to new Fed Chairman Kevin Warsh's comments

on inflation, unemployment and the economic outlook.

Traders see the Fed holding rates through much of the year

but are betting on a nearly 43% chance of a 25-basis-point rate

hike in December, according to CME Group's FedWatch tool.

In individual stocks, shares of Olin sank 5.9% after

the chemical producer said it would acquire Huntsman in

an all-stock deal valued at $2.43 billion. Huntsman shares

tumbled 17% as the offer stood at a discount to the stock's

recent price.

Yum Brands ( YUM ) shares rose 1.9% after the fast-food

company said it would sell its Pizza Hut chain for $2.7 billion,

as it struggles with stiff competition and cautious consumer

spending.

Advancing issues outnumbered decliners by a 1.06-to-1 ratio

on the NYSE where there were 338 new highs and 84 new lows. On

the Nasdaq, 1,963 stocks rose and 2,835 fell as declining issues

outnumbered advancers by a 1.44-to-1 ratio.

The S&P 500 posted 23 new 52-week highs and three new lows

while the Nasdaq Composite recorded 78 new highs and 119 new

lows.

On U.S. exchanges, 20.98 billion shares changed hands

compared with the 20.84 billion average for the last 20

sessions.