Dow Hits Record 54,349 on Iran Peace Hopes; Nasdaq Drops 0.8% on Tech Weakness 

Mumbai, Aug 5: US stock markets delivered a mixed performance in Wednesday’s closing session, with the Dow Jones Industrial Average extending its record-breaking run to a fifth consecutive session, while the tech-heavy Nasdaq Composite snapped its four-day winning streak amid sharp declines in major technology names following corporate results and leadership changes. 

The blue-chip Dow climbed 263.24 points, or 0.49%, to close at a fresh all-time high of 54,349.12, surpassing Tuesday’s record finish. The benchmark S&P 500, however, retreated 12.97 points, or 0.17%, to settle at 7,723.55, while the Nasdaq Composite dropped 221.55 points, or 0.83%, ending the session at 26,363.44. 

The divergent performance came as investors weighed optimism over a potential US-Iran peace deal to reopen the Strait of Hormuz against disappointing earnings reactions from key technology companies, including SpaceX and Advanced Micro Devices, which weighed heavily on the technology sector. 

Dow Surges 263 Points to Record 54,349 on Iran Deal Hopes 

The Dow Jones Industrial Average (^DJI) extended its winning streak to five sessions, marking its third consecutive record close as diplomatic developments in the Middle East bolstered investor confidence. The index opened at 54,266.12 and touched an intraday high of 54,744.33 — a new all-time peak — before settling at 54,349.12. The session low was recorded at 54,266.12, matching the opening level. Advancing volume on the New York Stock Exchange reached nearly 70%, underscoring the breadth of the rally. 

Leading the Dow’s advance were Walt Disney (DIS), which surged 3.56%, and Amgen (AMGN), which jumped 4.57%. McDonald’s (MCD) gained 2.11%, while Caterpillar (CAT) added 1.28%. Defensive names also contributed, with UnitedHealth (UNH) rising 1.28% and Johnson & Johnson (JNJ) climbing 1.09%. The largest decliner was Chevron (CVX) , which fell 2.11% following the decline in crude oil prices, while Verizon (VZ) shed 0.99% and Procter & Gamble (PG) lost 0.82%. 

S&P 500 Retreats 0.17% as Tech Rotation Weighs on Record Highs 

The S&P 500 (^GSPC) opened at 7,771.62 and briefly touched a new intraday high of 7,793.68 — surpassing Tuesday’s record peak — before selling pressure erased gains, sending the index to a session low of 7,720.17 before closing at 7,723.55. The benchmark index’s four-day winning streak came to an end as investors rotated out of technology stocks following corporate results. 

Nvidia (NVDA) emerged as the standout performer, surging 3.47% after SpaceX CEO Elon Musk confirmed the company’s exclusive use of Nvidia chips for its AI infrastructure. Eli Lilly (LLY) soared 4.76% on raised revenue guidance, while Amgen (AMGN) added 4.57% and Thermo Fisher Scientific (TMO) gained 2.32%. Arista Networks (ANET) rallied 3.57% following an upbeat revenue outlook. 

However, these gains were offset by sharp declines in semiconductor and technology names. Advanced Micro Devices (AMD) plummeted 7.04% as investors demanded a stronger AI payoff outlook. Uber Technologies (UBER) slid 5.29%, while Sandisk (SNDK) and Western Digital (WDC) fell 5.29% and 5.39%, respectively, ahead of their earnings reports. Bristol-Myers Squibb (BMY) declined 3.43%, and Gilead Sciences (GILD) retreated 2.58%. 

Also Read: How to Invest in S&P 500 Stocks Through Index Funds

Nasdaq Sheds 221 Points as SpaceX and AMD Disappoint Investors 

The Nasdaq Composite (^IXIC) posted the sharpest decline among the major indices, falling 221.55 points, or 0.83%, to close at 26,363.44. The index opened at 26,698.02 and reached an intraday high of 26,739.00 before dropping to a session low of 26,348.51. Advancing volume on Nasdaq reached nearly 80%, indicating broad participation despite the index’s decline. 

SpaceX (SPCX) weighed heavily on the tech index, plunging over 13% in its first earnings reaction as a public company, as the Elon Musk-led firm’s heavy AI infrastructure spending overshadowed a revenue beat. Alphabet (GOOGL) tumbled 4.06% following a significant leadership reshuffle in its AI division, with Chief Scientist Jeff Dean departing to launch a startup. AMD dropped 7.04%, while KLA Corporation (KLAC) fell 1.36% and Lam Research (LRCX) declined 3.27%. 

On the positive side, Shopify (SHOP) surged 16.95% after reporting what its president termed a “monster quarter” with revenue growth exceeding 30%. Booking Holdings (BKNG) jumped 6.56% on better-than-expected results, while Amgen (AMGN) added 4.57% and Eli Lilly (LLY) gained 4.76%. Marriott International (MAR) rose 4.67%, and Palo Alto Networks (PANW) advanced 1.00%. 

Russell 2000 Drops 0.59%; S&P 100 Falls 0.16% on Tech Weakness 

The Russell 2000 Index (^RUT) declined 17.79 points, or 0.59%, closing at 3,019.19. The small-cap benchmark opened at 3,038.42, touched a high of 3,048.85 and a low of 3,018.42. Small-cap stocks underperformed their large-cap counterparts as risk sentiment remained cautious following the technology-led selloff. The index’s 52-week high stands at 3,048.85, while the low is 2,202.87. 

The S&P 100 Index (OEX) fell 6.19 points, or 0.16%, to close at 3,814.48. The index opened at 3,838.93 and recorded an intraday high of 3,853.02 and a low of 3,810.59. The decline was driven by weakness in mega-cap technology names, with Alphabet and AMD weighing heavily on the index. The 52-week range stands at 3,853.02 on the high side and 3,074.00 on the low side. 

Dow Transports and Utilities Slide Over 0.9% as Oil Volatility Bites 

The Dow Jones Composite Average (DJC) edged marginally lower by 2.41 points, or 0.014%, closing at 17,105.20. The index opened at 17,149.66, reached a high of 17,246.95 and a low of 17,102.47. 

The Dow Jones Transportation Average (DJT) declined 202.58 points, or 0.93%, settling at 21,577.33, reflecting weakness in transportation and logistics stocks amid volatile oil prices. The index opened at 21,803.67 and touched a high of 21,854.11 and a low of 21,559.46. 

The Dow Jones Utility Average (DJU) fell 10.96 points, or 0.99%, to close at 1,101.01, as rising bond yields and a stronger dollar weighed on defensive utility names. The index opened at 1,112.21, recorded a high of 1,112.21 and a low of 1,092.03. 

Philadelphia Semiconductor Index Drops 1.4% on AMD and Memory Stock Declines 

The Philadelphia Semiconductor Index (SOX) declined 170.38 points, or 1.40%, to close at 12,008.88. The index opened at 12,141.69, touched a high of 12,361.25 and a low of 11,979.94. The selloff was driven by a 7.04% plunge in AMD, along with declines in Sandisk, Western Digital, and other chipmakers. Despite the decline, the index remains well above its 52-week low of 5,474.51, with a 52-week high of 14,655.29. 

NYSE Composite Gains 0.21% as Industrials and Financials Outperform 

The NYSE Composite Index (NYA) rose 50.95 points, or 0.21%, closing at 24,513.81, making it one of the few indices to finish in positive territory. The index opened at 24,462.87 and hit an intraday high of 24,653.01 and a low of 24,462.87. The gains were supported by strength in industrials and financials, with the industrial sector rising nearly 2% and financials advancing 0.9%. 

MidCap and SmallCap Indices Fall 0.54% and 0.91% on Risk-Off Sentiment 

The S&P MidCap 400 Index (SP400) declined 21.08 points, or 0.54%, to close at 3,847.33, while the S&P SmallCap 600 Index (SP600) fell 16.70 points, or 0.91%, settling at 1,811.84. Both indices mirrored the broader market’s cautious tone, with small caps underperforming as investors favoured large-cap defensive names amid geopolitical uncertainty. 

Also Read: How to Invest in the US Stocks From India

Iran Peace Talks Drive Oil Lower and Fuel Dow Record Run 

The primary catalyst driving the Dow’s record performance was growing optimism over a potential US-Iran peace deal to reopen the Strait of Hormuz. US President Donald Trump indicated that an agreement could come as early as Wednesday, following reports that Qatar had drafted a proposal between the US and Iran. Treasury Secretary Scott Bessent confirmed on CNBC that the US was in talks with Iran and that a deal could be reached within days to restore freedom of movement for commercial ships through the critical waterway. 

The prospect of reopening the strait — through which approximately one-fifth of the world’s oil flows — sent crude prices sharply lower. West Texas Intermediate (WTI) crude futures settled down 0.8% at $75.15 per barrel, while Brent crude futures edged higher to $79.45 per barrel. Treasury Secretary Bessent noted that prices could fall further when hundreds of ships stuck in the Persian Gulf are able to exit. 

SpaceX and AMD Earnings Disappoint, Triggering Tech Selloff 

Offsetting the optimism from the Middle East was disappointing reactions to corporate earnings from key technology companies. SpaceX shares plummeted over 13% despite reporting a revenue beat, as investors focused on the company’s massive AI infrastructure spending, nearly $16 billion in the quarter,  which overshadowed the segment’s rapid growth. The impending expiry of post-IPO lock-ups, which could release up to 20% of shares for trading, added further pressure. 

Advanced Micro Devices fell 7.04% despite reporting record quarterly revenue, as investors demanded a stronger outlook for the AI-driven growth story. Alphabet slid 4.06% following a major AI leadership reshuffle, with Chief Scientist Jeff Dean departing after 27 years to launch a startup, raising questions about the company’s AI roadmap. 

VIX Rises as Volatility Creeps Back After Tech-Led Selloff 

The CBOE Volatility Index (VIX) — widely known as Wall Street’s “fear gauge” — rose modestly as volatility returned to the markets following the technology-led selloff. The VIX increased, reflecting heightened uncertainty amid the mixed signals from geopolitical developments and corporate earnings. Despite the uptick, the VIX remained well below levels seen during the July selloff, indicating that investors retain a relatively optimistic outlook on the broader market. 

Consumer Discretionary and Healthcare Lead; Energy and Tech Tumble 

Consumer Discretionary emerged as the best-performing sector, with Walt Disney surging 3.56% on better-than-expected quarterly profits and Booking Holdings jumping 6.56% after beating estimates. The sector benefited from strong travel demand resilience despite geopolitical headwinds. 

Healthcare was another standout, led by Eli Lilly’s 4.76% surge following raised revenue guidance and Amgen’s 4.57% climb. The sector’s defensive characteristics also attracted investors amid the technology selloff. Financials advanced nearly 1%, led by Goldman Sachs and other major banks benefiting from increased trading revenues amid volatile market conditions. 

Energy was the worst-performing sector, with Chevron falling 2.11% and other oil majors declining as crude prices remained under pressure from potential supply normalisation in the Strait of Hormuz. Information Technology underperformed as AMD, Alphabet, and semiconductor names weighed heavily on the sector. The Philadelphia Semiconductor Index declined 1.4%, driven by the broader chip selloff. 

Utilities declined nearly 1% as rising bond yields made defensive dividend stocks less attractive. Materials edged higher, supported by copper prices reaching a 12-week high amid tightening inventories outside the US. Industrials rose nearly 2%, with Caterpillar and other industrial names benefiting from strength in the AI data centre buildout theme. Real Estate was mixed, with some REITs gaining on lower rate expectations, while others declined on rising term premiums. 

Shopify and Booking Holdings Surge; AMD and SpaceX Plunge 

Shopify (SHOP) surged 16.95% after reporting what President Harley Finkelstein termed a “monster quarter,” with revenue up 34% year-on-year and strong guidance for the current quarter. Booking Holdings (BKNG) jumped 6.56% as the online travel company beat estimates on profit, revenue, and gross bookings, with CEO Glenn Fogel noting resilience in travel demand despite Middle East volatility. 

Eli Lilly (LLY) rose 4.76% after raising its full-year revenue forecast on strong demand for GLP-1 drugs. Amgen (AMGN) climbed 4.57%, while Thermo Fisher Scientific (TMO) added 2.32%. Arista Networks (ANET) surged 3.57% following an upbeat revenue outlook. 

Walt Disney (DIS) gained 3.56% on strong quarterly profits driven by the success of “Toy Story 5” and robust theme park demand. McDonald’s (MCD) added 2.11% as the fast-food giant posted earnings that exceeded expectations. 

Advanced Micro Devices (AMD) plummeted 7.04% as investors sought greater clarity on AI-driven growth following its record quarterly results. Uber Technologies (UBER) fell 5.29% after reporting lacklustre earnings and issuing a weak profit forecast for the third quarter. 

Sandisk (SNDK) and Western Digital (WDC) declined 5.29% and 5.39%, respectively, ahead of their earnings reports. Alphabet (GOOGL) dropped 4.06% amid a significant AI leadership reshuffle. Bristol-Myers Squibb (BMY) fell 3.43% despite beating earnings estimates. Gilead Sciences (GILD) declined 2.58%. 

The Magnificent Seven mega-cap technology stocks finished mixed. Nvidia (NVDA) led the group with a 3.47% gain after Elon Musk confirmed SpaceX would exclusively use Nvidia chips. Apple (AAPL) rose 0.54%, while Meta Platforms (META) edged up 0.14% and Netflix (NFLX) gained 0.84%. However, Microsoft (MSFT) slipped 1.11%, Amazon (AMZN) fell 1.68%, and Tesla (TSLA) declined 1.84%. Alphabet’s 4% slide pushed it to the bottom of the group. 

Semiconductor Stocks Pull Back; Financials Gain on Trading Revenues 

Semiconductor stocks experienced a significant pullback following Tuesday’s sharp rally. The iShares Semiconductor ETF (SOXX) declined approximately 2%, while the Roundhill Memory ETF (DRAM) fell 2.5%. AMD’s 7.04% decline weighed heavily on the sector, with Micron Technology and Intel also slipping. Nvidia bucked the trend with a 3.47% gain on exclusive supply confirmation from SpaceX. Investors await earnings from Sandisk and Western Digital after the bell for further clues on memory demand. 

Financials outperformed the broader market, advancing nearly 1%. Goldman Sachs and JPMorgan Chase led the sector higher, benefiting from heightened trading revenues amid market volatility and a reopening of M&A and IPO markets. Banks have been direct beneficiaries of the turbulent backdrop, with sweeping tariff announcements, shifting trade negotiations, and geopolitical flare-ups fueling sharp swings across equities and fixed income. 

Energy was the worst-performing sector as crude prices remained under pressure from the potential reopening of the Strait of Hormuz. Chevron and Exxon Mobil declined sharply, while Phillips 66 fell despite reporting a strong earnings beat driven by high refining margins during the Iran conflict. 

AI and growth stocks were mixed. Palantir Technologies, which surged 29% on Tuesday, pulled back 2.6% on profit-taking but remained well above pre-earnings levels. Shopify soared nearly 17%, demonstrating continued investor appetite for AI-driven commerce platforms. SpaceX, however, showed that even rapid AI revenue growth may not satisfy investors if accompanied by massive infrastructure spending. 

Job Openings Slip to 7.36 Million; Private Payrolls Miss Estimates 

Job openings in the US slipped to 7.36 million in June, below the Dow Jones consensus of 7.6 million and down from the downwardly revised May total of 7.55 million. The openings rate as a share of the labour force edged lower to 4.4%, with healthcare-related fields accounting for much of the overall decline. The ratio of openings to the unemployed held just above 1 to 1, indicating a still-tight labour market despite the decline. 

Private employers added 44,000 jobs in July, according to payrolls data provider ADP, significantly below economists’ estimates of 65,000 jobs added. The ADP print marked a notable step down from the previous month’s revised tally of 95,000 private sector jobs added. However, pay growth for job-changers rose to 7% year-on-year in July, the largest yearly growth seen since August 2025, suggesting supply constraints in parts of the labour market. Pay gains for those who remained in their jobs was flat at 4.4%. 

Also Read : US Stock Market Timings

Fed’s Paulson Sees Rates as Sufficiently Restrictive; Yields Dip 

Philadelphia Federal Reserve President Anna Paulson said in her first CNBC interview that she believes the current level of interest rates is sufficient to keep inflation moving towards the central bank’s 2% goal. Paulson, who voted to keep the Fed’s benchmark borrowing rate anchored at 3.5% to 3.75% last week, insisted she has an open mind about where monetary policy should go but noted that policy has been “mildly restrictive” and that she needs to see progress from here. 

Treasury yields edged lower as oil prices dipped on hopes of a Strait of Hormuz agreement. The 2-year note yield fell 0.66 basis points to 4.187%, its lowest level since July 20. The yield on benchmark US 10-year notes fell 1.23 basis points to 4.615%, while the 30-year Treasury bond yield stood at approximately 5.25%. 

The yield curve between 2-year and 10-year notes steepened to 42.6 basis points, reflecting ongoing concerns about the Fed’s credibility amid rising term premiums. According to BNP Paribas strategists, term premiums are rising as investors increasingly question whether the Fed can solve the inflation problem, pushing long-end yields higher. The US Treasury Department said it will hold its coupon issuance steady “for at least the next several quarters.” 

Gold Jumps 3.7% to $4,307 as Dollar Weakens; Oil Steady 

WTI crude futures slipped 0.8% to settle at $75.15 per barrel, while Brent crude futures edged higher to $79.45 per barrel. Prices were volatile, with losses on diplomacy hopes tempered by news that Yemen’s Iran-aligned Houthi rebels had attacked a Saudi oil tanker in the Red Sea. US diesel futures reversed losses, rising 0.16% after an Energy Information Administration report showed a surprise stock draw. 

Gold futures soared 3.73% to $4,307.30 per ounce, driven by a weaker US dollar and lower Treasury yields, as well as renewed buying from Chinese investors. Chinese gold ETFs saw 14 straight days of inflows ending Monday, marking the longest streak since March. Silver and copper also advanced, with copper hitting a 12-week high of $14,095 per metric ton as falling inventories in the London Metal Exchange system and US tariff expectations supported prices. 

The US Dollar Index (DXY) slipped 0.2% to 99.71, reflecting the weaker greenback amid optimism over the Middle East talks. Bitcoin was trading around $64,800, up modestly over the past 24 hours. 

The Dow’s record run reflects optimism over a potential US-Iran peace deal that could normalise oil flows and ease inflationary pressures. However, the tech sector’s struggles highlight persistent concerns about AI-driven valuations amid massive infrastructure spending. Friday’s nonfarm payrolls report will provide critical clarity on labour market health and its implications for Federal Reserve policy. Developments in US-Iran negotiations will remain a key driver for oil prices and broader market sentiment. 

Source 

• https://www.nasdaq.com/ 

• spglobal.com/spdji/en/indices/equity/sp-500/ 

• https://www.dowjones.com/ 

• https://www.spglobal.com/spdji/en/indices/equity/dow-jones-industrial-average/ 

• https://www.spglobal.com/spdji/en/indices/equity/sp-500/ 

• https://www.nasdaq.com/market-activity/index/comp 

• https://www.nasdaq.com/market-activity/quotes/nasdaq-ndx-index 

• https://www.spglobal.com/spdji/en/indices/equity/sp-100/ 

• https://www.lseg.com/en/ftse-russell/indices/russell-us 

• https://www.nyse.com/index 

• https://www.nyse.com/index 

• https://www.spglobal.com/spdji/en/indices/equity/dow-jones-transportation-average/ 

• https://www.spglobal.com/spdji/en/indices/equity/dow-jones-utility-average/ 

• https://www.spglobal.com/spdji/en/indices/equity/dow-jones-composite-average/ 

• https://www.nasdaq.com/market-activity/index/sox 

• https://www.cboe.com/tradable_products/vix/