(Updates with preliminary closing prices)

* 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.

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 rallied, but pared earlier gains. For

much of the session, the rocket and AI company's market value

was above that of Amazon ( AMZN ) and it briefly surpassed

Microsoft's ( MSFT ) value.

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."

According to preliminary data, the S&P 500 lost 41.85

points, or 0.55%, to end at 7,512.44 points, while the Nasdaq

Composite lost 301.13 points, or 1.15%, to 26,382.81.

The Dow Jones Industrial Average rose 345.54 points, or

0.67%, to 52,016.57.

TECHNOLOGY LAGS, FINANCIALS RISE

Investors rotated into economically sensitive sectors and

sold richly valued technology stocks during the session with

chip stocks falling sharply after soaring in the prior three

sessions. Of the S&P 500's 11 major industry sectors, financials

and industrials rose.

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 have been betting on a roughly 42% chance of a

25-basis-point rate hike in December, according to CME Group's

FedWatch tool.

In individual stocks, shares of Olin sank after the

chemical producer said it would acquire Huntsman in an

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

fell as the offer stood at a discount to the stock's recent

price.

Yum Brands ( YUM ) shares rose 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.