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The Dow Jones Industrial Average achieved an all-time high on Wednesday, driven by rising optimism over potential peace talks with Iran. Meanwhile, both SpaceX and AMD saw their stock prices drop following their earnings announcements. The growth in private payrolls also showed signs of cooling in July, reflecting a steady job market, as market watchers keep a keen eye on inflationary pressures and the Federal Reserve’s next moves. Listen to this article in summarized format
AP US stocks opened higher as Mideast hopes offset SpaceX, AMD drag. The Dow closed at a record on Wednesday on signs of progress for a peace deal with Iran, while the Nasdaq saw its first decline in five sessions as SpaceX and AMD stumbled following their quarterly earnings. A proposed deal between Iran and Oman would give Tehran control over ships entering the Gulf through the Strait of Hormuz, a senior Iranian source and two regional officials told Reuters, in one of the biggest concessions yet to Iran. Stocks rallied to start the week, with the Dow and S&P 500 closing at records on Tuesday, as oil prices and U.S.
Treasury yields dropped on hopes peace talks could lead to a deal, easing inflation pressures and lowering expectations for a rate hike from the Federal Reserve. “It’s just a straight rocket shot that we’ve gone up, we didn’t even take a breath,” said Kenny Polcari, chief market strategist at Slatestone Wealth in Jupiter, Florida. “It’s progress, but the market’s just going, we’re not going to give it to you this time until we actually see the progress, because how many times have we been jerked around over the last four months?”
According to preliminary data, the S&P 500 lost 13.33 points, or 0.17%, to end at 7,723.19 points, while the Nasdaq Composite lost 225.32 points, or 0.85%, to 26,359.67. The Dow Jones Industrial Average rose 264.04 points, or 0.49%, to 54,349.92. SPACEX SHARES TUMBLE ON AI SPENDING CONCERNS
Elon Musk-led SpaceX’s revenue nearly doubled and operating losses narrowed in its first earnings report since going public, fueled by its booming Starlink satellite communications and AI businesses, but shares tumbled on concerns about how long the company could maintain spending on AI-related investments such as data centers. Shares could face additional pressure from the expiry of the stock’s post-IPO lock-up period starting on Thursday. Advanced Micro Devices forecast quarterly revenue above estimates, reflecting strong AI demand.
However, shares dropped as investors look for greater evidence the massive AI spending will result in faster growth. A gain in Amgen helped buoy the Dow, as second-quarter sales for the drugmaker rose 9%. Rival Eli Lilly also advanced after raising its full-year revenue forecast and the S&P 500 healthcare closed as one of the best-performing sectors on the session.
Also helping to boost the Dow was a rise in Disney shares after beating third-quarter profit expectations. ADP PRIVATE PAYROLLS GROWTH SLOWS
On the data front, U.S. private payrolls growth slowed in July, as per the ADP national employment report. The data was the second in a string of reports on the labor market this week before Friday’s government payrolls report. Separately, the Institute for Supply Management said its nonmanufacturing purchasing managers index inched up to 54.1 last month from 54.0 in June, below the 54.5 estimate of economists polled by Reuters but above the 50 threshold that signals growth. Data has largely reflected a stable labor market, but the war with Iran that began at the end of February has kept concerns about price pressures and the Fed’s response to it as a primary concern among investors. Minneapolis Fed President Neel Kashkari said in an interview with CNBC that he believed now is the time to start slowly moving interest rates higher.
Federal Reserve Board Governor Lisa Cook and San Francisco Fed President Mary Daly are scheduled to speak later in the day. Expectations for a rate hike from the central bank at its September meeting have dipped to 54.9%, according to CME FedWatch, down from 58.3% a week ago. (What’s moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
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(What’s moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets.
Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
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