Stocks were little changed Tuesday as the broader market reached record highs as investors kicked off the holiday-shortened week. The Dow Jones Industrial Average rose just 10 points, while the S&P 500 Index added 0.2% and the Nasdaq Composite ticked above the flatline.

Here's how the market settled on Tuesday:

S&P 500 Index (SPY  2.07%): +0.24% or +14.95 points to 6,129.58

Dow Jones Industrial Average (DIA  1.61%): +0.02% or +10.26 points to 44,556.34

Nasdaq Composite Index (QQQ  2.42%): +0.07% or +14.49 points to 20,041.26

Wall Street is coming off a winning week, with much of the week's gains coming from Thursday's session after President Donald Trump announced plans for reciprocal tariffs on countries with duties on U.S. goods, boosting optimism that coming tariffs may not be as large as feared.

Geopolitics:

The United States and Russia held their first formal meeting between top diplomats since January 2022 on Tuesday, as the nations begin talks to end the war in Ukraine. U.S. Secretary of State Marco Rubio and Russian Foreign Minister Lavrov met with U.S. Envoy Steve Witkoff, U.S. National Security Adviser Mike Waltz and Kremlin Aide Yury Ushakov in Saudi Arabia, according Russian state media.

U.S. State Department Spokesperson Tammy Bruce said in a statement on Tuesday: "One phone call followed by one meeting is not sufficient to establish enduring peace. We must take action, and today we took an important step forward."

On the Economic Front:

Homebuilder Sentiment declined to the lowest level in five months in February, the National Association of Home Builders' Housing Market Index (HMI) showed Tuesday, with pessimism growing from concern over proposed tariffs that could impact costs significantly.

The month's HMI fell 5 points from January to a reading of 42 -- readings below the neutral level of 50 indicate negative sentiment. The index came in at a reading of 48 in February 2024. Beneath the headline, current sales conditions sentiment fell 4 points to 46, buyer traffic fell 3 points to 29 and sales expectations in the next sic months dropped 13 points to 46.

"While builders hold out hope for pro-development policies, particular for regulatory reform, policy uncertainty and cost factors created a reset for 2025 expectations in the most recent HMI, said NAHB Chair Carl Harris, a homebuilder from Wichita, Kansas, said in the release.

In the News:

Southwest Airlines (LUV  2.35%) announced Monday that it is reducing its corporate workforce by about 15%, representing about 1,750 people, as the airline seeks to cut costs by $210 million in 2025 and roughly $300 million in 2026. The company's layoffs come several months after a settlement with activist investor Elliott Investment Management won five board seats.

"This decision is unprecedented in our 53-year history, and change requires that we make difficult decisions," CEO Bob Jordan said in a press release. "We are at a pivotal moment as we transform Southwest Airlines into a leaner, faster, and more agile organization."

For Wednesday:

Market participants will turn their attention towards more housing market data for January on Wednesday, as well as the minutes from the Federal Reserve's recent policy meeting and earnings from companies including Occidental Petroleum (OXY  2.38%), Toll Brothers (TOL  1.82%) and Analog Devices (ADI  2.43%).