Dow edges to record as markets parse prospects for Hormuz deal
Analyst Patrick O’Hare said markets remained “bullish minded” on hopes of reopening the Strait of Hormuz.
Specialist Dilip Patel works on the floor of the New York Stock Exchange, Thursday, Jul 30, 2026, in New York. (Photo: AP/Yuki Iwamura)
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NEW YORK: Stock markets climbed but then stalled Wednesday (Aug 5) as investors digested a wave of company earnings that broadly surpassed expectations, while assessing the chances of a US-Iran deal to reopen the Strait of Hormuz.
After pushing strongly ahead in early trading on Wall Street, momentum weakened for major US indices, with the tech-rich Nasdaq and broad-based S&P 500 finishing lower. The Dow still mustered a 0.5 per cent gain, lifting it to a third straight record close.
“It’s just a case of the market taking a breather right now,” said Briefing.com analyst Patrick O’Hare, adding that investors are still “operating with a bullish minded bias for the most part.”
Oil prices also finished mixed as markets tried to parse the latest developments regarding a potential reopening of the Strait of Hormuz.
Tehran’s foreign ministry said Iran and Oman have agreed a route for ships transiting the Strait of Hormuz and are putting the final touches on arrangements for jointly managing the waterway.
But official sources briefing Iranian media stressed that any reopening of the strait would depend on the United States fulfilling what Tehran sees as its commitment to end its own naval blockade of Iran’s ports.
“The factors making the Strait of Hormuz insecure still exist on the part of the United States, particularly the naval blockade and other aggressive and threatening actions against Iran and its interests,” said Iran Foreign Ministry spokesman Esmaeil Baqaei, according to state news agency IRNA.
Oil prices had fallen sharply on both Monday and Tuesday as Trump administration officials said they were close to an accord with Iran that would reopen the Hormuz Strait.
“Whatever the damage to the US’ standing internationally, markets only care for now about the beneficial effect of lower oil prices, which are likely to help cool inflation and ease back the chances of Fed hikes in 2026,” said Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.
In Europe, London ended with just a 0.1 per cent rise, Paris was flat following a Tuesday record high while Frankfurt lost 0.3 per cent at the close.
Frankfurt and Paris had joined Madrid and Milan in hitting fresh highs earlier in the session.
Earlier, Asian equities benefited from a recent revival in technology stocks after a month-long rout, tracking gains on Wall Street Tuesday that sent both the Dow and the S&P 500 to new records.
Seoul, which has been at the forefront of extreme volatility in the tech sector over the past month, added 3.8 percent, while Tokyo ended up more than three percent and Hong Kong and Shanghai also saw gains.
Among individual companies, SpaceX slid 13.6 per cent after Elon Musk’s rocket and satellite company posted its first quarterly earnings report as a publicly traded company. Analysts pointed to worries about SpaceX’ spending after expenditures exceeded US$18 billion in the three months ending in June.
Advanced Micro Devices (AMD) processor and graphics solutions giant slipped around seven per cent, despite beating analysts’ estimates.
Source: AFP/fs
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