Nasdaq Dips 0.36% to 26,509 as Iran Tensions Fuel Inflation Fears; Dow Rises 0.34% on Hormuz Deal Hopes
Authored By HDFC SKY | Last Modified: Aug 11, 2026 08:39 PM IST
Mumbai, Aug 11: Wall Street witnessed a mixed opening on Tuesday as investors grappled with conflicting signals surrounding the Strait of Hormuz conflict, surging crude oil prices, and mounting inflation concerns ahead of crucial consumer price data. The technology-heavy Nasdaq Composite fell 96.05 points or 0.36% to trade at 26,509.31, while the blue-chip Dow Jones Industrial Average advanced 181.24 points or 0.34% to 54,157.22. The S&P 500 slipped marginally by 2.13 points or 0.03% to 7,750.98, reflecting the broad-based uncertainty gripping financial markets.
The mixed performance came as investors digested reports of potential progress toward reopening the strategic Strait of Hormuz, weighed against President Donald Trump’s hardening demands on Iran and Tehran’s refusal to back down from its conditions. The geopolitical standoff has pushed oil prices higher for five consecutive sessions, with Brent crude crossing $90 a barrel after surging 5% in the previous session, rekindling fears that energy-driven inflation could complicate the Federal Reserve’s monetary policy trajectory.
US-Iran Standoff Intensifies as Hormuz Negotiations Stall
The uncertainty surrounding the reopening of the Strait of Hormuz continued to weigh heavily on market sentiment Tuesday. President Donald Trump issued sweeping new demands on Iran, including compensation for people killed by the Islamic Republic in conflicts, after Tehran reiterated its calls for reparations as part of negotiations to wind down the conflict. The development comes as US stockpiles of key weapons have dwindled, while stop-start negotiations appear to have stalled again.
Also Read: What Is the New York Stock Exchange (NYSE)?
Iranian Foreign Minister Abbas Araghchi said Sunday there was “no possibility of restarting negotiations” as long as the US continues violating the June memorandum of understanding and does not compensate Iran for those violations, according to the semi-official Tasnim News Agency. Iran has refused to back down from its demands that the US end its blockade of Iranian ports and fulfil other conditions before Tehran considers reopening the Strait of Hormuz.
Trump, however, maintained on Monday that the US has “100% control” of the Strait of Hormuz and that the US Navy’s blockade of the strait is preventing Iran from selling its oil on international markets, effectively putting further pressure on the Iranian economy. The president also signalled he was prepared to allow economic pressure on Iran to build rather than launch fresh strikes, a stance that has kept markets on edge as they assess the likelihood of a diplomatic breakthrough.
Oil Prices Extend Five-Session Winning Streak Above $90 on Supply Fears
Crude oil prices extended their winning streak to a fifth straight session on Tuesday, with Brent crude futures rising above $90 a barrel after surging 5% in the previous session, as President Trump lashed out at Iran’s demands for compensation. US benchmark West Texas Intermediate (WTI) crude futures gained another 3% to $84.70 a barrel, extending their gains for a fifth consecutive session. The sustained rally in energy prices has revived inflation concerns, adding complexity to the Federal Reserve’s policy deliberations.
Also Read: Understanding Dow Jones Industrial Average (DJIA) – A Complete Guide
The oil price surge comes amid heightened geopolitical risk premium, as the Strait of Hormuz remains a critical chokepoint for global energy shipments. Any disruption or delayed reopening could have significant implications for crude prices and inflation expectations. However, oil futures edged slightly lower during Tuesday’s trading session as investors awaited news of any Hormuz developments, with WTI futures down 0.4% at $81.85 a barrel and Brent futures slipping 0.5% to $87.30 in recent trading, suggesting some profit-taking after the sharp rally.
Treasury Yields Rise to 4.73% as Inflation Concerns Resurface
US Treasury yields moved higher across the curve as the impasse between the US and Iran over winding down the war raised inflation concerns. The yield on the 10-year Treasury note increased 3 basis points to 4.73% in early trade, up from Monday’s closing level of 4.71%, after earlier having risen to near 4.74% on fears that rising energy prices could trigger inflation. The yield on the 2-year Treasury note, which typically tracks short-term Federal Reserve interest rate decisions, rose by more than 2 basis points to 4.26%.
The uptick in yields reflects growing investor anxiety that elevated energy costs could rekindle price pressures, potentially forcing the Federal Reserve to maintain a restrictive monetary policy stance. UK and eurozone bonds also climbed higher, with global fixed-income markets responding to the oil price surge. The yield movements come ahead of two crucial inflation readings this week—the Consumer Price Index (CPI) on Wednesday and the Producer Price Index (PPI) on Thursday—which could either amplify or alleviate these concerns.
Nvidia Rallies 1.5% After Securing $500 Billion AI Infrastructure Financing
Nvidia (NVDA) shares rose 1.5% in early trading, rebounding from Monday’s near-3% decline, after the chipmaker signed memorandums of understanding with six major asset managers to mobilise up to $500 billion in third-party capital for artificial intelligence infrastructure. The partners include Apollo Global Management, Blackstone, BlackRock, Brookfield Asset Management, Goldman Sachs, and KKR, all of which committed to financing hyperscaler customers to build out AI data centres and acquire Nvidia’s hardware.
Nvidia CEO Jensen Huang said in a CNBC interview that he approached only six firms for the commitment, and none of them turned him down, highlighting strong investor appetite for AI infrastructure despite rising capital requirements. The development underscores the aggressive buildout of AI computing capacity, with companies spending billions on data centres, chips, and other infrastructure. While this is great news for equipment sellers, it also means they are competing for capital with governments and other businesses, increasing the demand for money.
Intel Upsizes Stock Offering to $20 Billion as AI Ambitions Drive Capital Needs
Intel (INTC) shares fell less than 1% in early trading after the chipmaker increased the size of its common stock offering to $20 billion from the $15 billion announced on Monday. The company priced the offering of roughly 210.53 million shares at $95 per share, about 2.5% below Monday’s closing price of $97.52. Intel said it will generate proceeds of $19.7 billion and will use the funds for “general corporate purposes” including capital expenditures.
Also Read: What Are Fractional Shares?
The upsized offering comes as Intel and other chipmakers have been spending big on manufacturing capacity to meet the demand created for hardware used to run AI products. The company’s shares have rallied 165% this year, dramatically reducing the dilution cost of raising new capital. At Monday’s close of roughly $98, Intel would need to sell about 153 million shares to raise $15 billion—nearly 80% fewer shares than the 733 million that would have been required at the $20.47 per share price the US government paid for its stake last year.
Riot Platforms Surges 17% on $9 Billion Cloud Deal with Anthropic
Riot Platforms (RIOT) shares soared 17% after Bloomberg reported the company had inked a roughly $9 billion cloud deal with Anthropic to supply the Claude maker with 191 megawatts of computing capacity. The crypto miner’s second-quarter revenue topped analyst expectations, clocking in at $174.2 million against FactSet estimates of $154.3 million. The data centre lease deal with “a Leading Frontier AI Lab” marks a significant diversification for the company beyond cryptocurrency mining.
The surge in Riot’s stock reflects growing investor interest in companies that can provide computing infrastructure for AI applications. The deal with Anthropic, one of the leading AI startups, underscores the intense demand for computing capacity to train and run large language models. Riot’s ability to secure such a substantial agreement highlights the value of its data centre assets and positions the company as a player in the broader AI infrastructure ecosystem.
Hims & Hers Drops 2.5% as Weight-Loss Drug Transition Weighs on Profits
Hims & Hers Health (HIMS) shares fell 2.5% after the telehealth company posted a wider-than-expected second-quarter loss as it transitions to selling branded weight-loss drugs through its platform. While revenue grew 38% year-on-year to $753 million, the company swung to a net loss of $86.3 million in the quarter ended June, compared with a profit of 17 cents per share in the prior year. US revenue grew 17% while its international business grew more than 17-fold, driven by its acquisition of Australian digital health company Eucalyptus in June.
Also Read: What Is the S&P 500? A Simple Guide for Everyday Investors
The company raised its full-year guidance, saying it expects acceleration through the second half of the year, though the outlook implies a hefty profit lift in the fourth quarter, keeping execution risk elevated according to Citi analysts. Subscribers grew by 21% in the quarter as it sold more sexual health, skincare, hair-loss treatments, and crucially, weight-loss medication. Hims’ volatile stock closely tracks investors’ perceived chances of cashing in on the GLP-1 boom, with the company having recently settled patent litigation with Novo Nordisk.
On Holding Plunges 22% After Cutting Full-Year Sales Guidance
On Holding (ONON) shares plummeted 22% after the Swiss sneaker company reported weaker-than-expected second-quarter sales and cut its full-year sales guidance. The Zurich-based company posted net sales of 850.3 million Swiss francs, a 13% increase year-over-year but below analyst expectations of 883.8 million Swiss francs. Adjusted earnings of CHF 0.35 per share narrowly topped expectations, but the downbeat outlook overshadowed the earnings beat.
For fiscal 2026, On now sees net sales growing “in the low-20% range” on a constant-currency basis, down from “at least 23%” and below analysts’ expectation of 24.7%. The company said the revised outlook is “consistent with its premium strategy and commitment to only pursuing growth that protects and elevates the brand.” The stock, which entered Tuesday down nearly 17% since the start of the year, is now pointing to further declines as investors digest the reduced growth trajectory.
Super Micro Computer Set for Earnings Test After Warning on Revenue
Super Micro Computer (SMCI) is scheduled to report earnings after the closing bell Tuesday, with traders anticipating a big move in the AI server maker’s stock. Shares are seen swinging up to 12% in either direction by the end of the week, based on recent options pricing. A move of that size from Monday’s close could lift the stock as high as $35 or slip as low as $27. The company’s shares are up 7% since the start of the year but nearly 40% off their June highs.
In a preliminary business update last month, Supermicro warned revenue for the quarter could be closer to the low end of its previously forecast range of $11 billion to $12.5 billion, though new orders in the period exceeded $60 billion, suggesting a record backlog. For the fourth quarter, Supermicro is expected to report adjusted earnings per share of $1.33 on revenue of $11.2 billion, according to Bloomberg analyst consensus estimates, compared with EPS of $0.41 and revenue of $5.7 billion in the same period last year.
Dow Jones Movers: Caterpillar Surges 3.04% as Amazon and Salesforce Decline
Among the Dow Jones Industrial Average components, Caterpillar (CAT) led the gains with a 3.04% surge, followed by Boeing (BA) rising 1.51% and 3M (MMM) advancing 1.24%. The industrial sector strength came as investors rotated into cyclical names on hopes of a potential Hormuz deal that could ease oil prices and support economic activity. Nvidia (NVDA) also contributed 1.24% to the Dow’s advance, riding the momentum from its AI financing announcement.
On the downside, Amazon (AMZN) declined 1.67%, Microsoft (MSFT) fell 1.15%, and Salesforce (CRM) dropped 0.80%, weighing on the tech-heavy components of the blue-chip index. The technology sector within the Dow showed weakness, with Cisco Systems (CSCO) down 1.46% and Apple (AAPL) slipping 0.68%. The mixed performance reflects the broader uncertainty as investors weigh geopolitical risks against corporate earnings and AI-related optimism.
Nasdaq-100 Heatmap: ASML and KLAC Rally Over 4% as Datadog and AppLovin Tumble
Within the Nasdaq-100 index, ASML Holding (ASML) surged 4.34% and KLAC (KLAC) jumped 4.19%, leading the semiconductor equipment makers higher on strong demand for chip manufacturing tools. Lam Research (LRCX) added 2.99%, Applied Materials (AMAT) gained 2.25%, and Analog Devices (ADI) rose 2.34%, reflecting continued strength in the semiconductor supply chain amid the AI buildout.
Conversely, AppLovin (APP) plummeted 4.86% and Datadog (DDOG) tumbled 4.72%, making them the worst performers in the index. Palo Alto Networks (PANW) fell 1.95%, Shopify (SHOP) declined 2.08%, and CrowdStrike (CRWD) dropped 2.26%, as software and cybersecurity names came under pressure. Airbnb (ABNB) slid 2.45% and Pinduoduo (PDD) fell 2.04%, while MercadoLibre (MELI) gained 3.06%, highlighting the divergent performance within the consumer discretionary sector.
S&P 500 Heatmap: Oracle Plunges 3.48% as Dell Tumbles 4.66%
The S&P 500 heatmap showed significant divergence, with Oracle (ORCL) plunging 3.48% and Dell Technologies (DELL) tumbling 4.66%, making them the worst performers in the benchmark index. AppLovin (APP) also fell 4.94% in the broader index, while CrowdStrike (CRWD) dropped 2.27% and Google parent Alphabet (GOOGL) declined 2.22%, reflecting weakness in technology and communication services.
On the positive side, Caterpillar (CAT) led with a 3.04% gain, followed by GE Vernova (GEV) rising 3.02%, Eaton (ETN) up 2.71%, and Blackstone (BX) gaining 2.67%, showcasing strength in industrials and financials. Trane Technologies (TT) added 2.49% and Amphenol (APH) rose 1.87%, while KLAC (KLAC) advanced 4.09% and Texas Instruments (TXN) gained 1.45%, keeping the semiconductor sector buoyant despite the broader tech weakness.
US Inflation Data in Focus as CPI Report Looms on Wednesday
Investors are now turning their attention to Wednesday’s US Consumer Price Index (CPI) report, which could provide fresh clues about the path of Federal Reserve interest rates. The data assumes added importance after the weaker-than-expected jobs report raised questions over the central bank’s policy trajectory. The US CPI is expected to have risen 0.1% in July, following a 0.4% decline in the previous month, according to the median estimate in a Bloomberg survey of economists ahead of Wednesday’s Bureau of Labor Statistics release.
The core inflation reading is particularly important because policymakers closely monitor underlying price pressures when assessing whether monetary policy needs to remain restrictive. A stronger-than-expected inflation reading could reinforce expectations for higher interest rates, while softer inflation could support the case for a less aggressive monetary policy outlook. Higher oil prices are renewing concerns about price pressures just as the sharp slowdown in hiring raises questions about the strength of consumer spending and the broader economy.
Federal Reserve Rate Outlook Remains Uncertain After Jobs Data
The Federal Reserve’s next moves remain a major focus for stock-market investors, with market participants divided over whether the central bank could raise interest rates at its September meeting. The inflation data could prove important in determining those expectations, particularly depending on how the figures compare with the core Personal Consumption Expenditures (PCE) inflation measure. The surprisingly soft July jobs report on Friday eased investor concerns that the central bank will raise its key rate soon, but a hot inflation reading would likely renew those worries.
Also Read: What is NASDAQ Composite
Cleveland Federal Reserve President Beth Hammack told Yahoo Finance on Monday that it may take more than one rate hike to rein in inflation, suggesting that policymakers remain cautious about declaring victory over price pressures. The inflation reports could put the Fed in a difficult position, as higher oil prices are renewing concerns about price pressures just as the sharp slowdown in hiring raises questions about the strength of consumer spending and the broader economy.
Small Business Optimism Hits Near One-Year High as Hiring Plans Jump
Confidence among small business owners hit its highest point in nearly a year during July, boosted by strong hiring plans, according to the National Federation of Independent Business (NFIB) . The NFIB Small Business Optimism Index rose to 99.8, up 2.4 points to its best level since August 2025 and above its 52-year average of 98.0. The labour market was the big story for the month as a seasonally adjusted net 20% of owners said they were planning on creating new jobs over the next three years, the highest level since October 2022 and up 9 points from June.
“Although uncertainty is currently elevated, Main Street anticipates that business conditions will continue to improve,” said NFIB chief economist Bill Dunkelberg. The optimism among small businesses comes despite the broader economic uncertainty, suggesting that Main Street remains resilient even as Wall Street grapples with geopolitical risks and inflation concerns. The strong hiring plans could provide some reassurance that the labour market remains healthy despite the recent slowdown in job creation.
Existing Home Sales Data Due as Housing Market Faces Pressure
Tuesday’s economic calendar includes existing home sales data from the National Association of Realtors, due at 10:00 AM ET. Home sales are anticipated to fall to 4.05 million in July from 4.09 million in June, reflecting continued pressure on the housing market from elevated mortgage rates. The yield on the 10-year Treasury note, which serves as a benchmark for mortgage rates, has been hovering near 4.73%, keeping borrowing costs high for potential homebuyers.
Also Read: How to invest in US stocks
The housing market has been under pressure as affordability remains a challenge, with prices still elevated despite some moderation. The anticipated decline in existing home sales would mark another month of sluggish activity, though the extent of the decline could provide clues about the resilience of consumer demand in the face of higher borrowing costs. The data comes ahead of Wednesday’s CPI report and Thursday’s PPI report, which could further influence mortgage rates and housing market sentiment.
AI Boom Fuels Race for Capital as Tech Giants Raise Billions
The artificial intelligence boom is fuelling an intense race for capital, with companies spending billions on data centres, chips, and other infrastructure. US investment giants, including Apollo Global Management, Blackstone, BlackRock, and Brookfield Asset Management, are partnering with Nvidia to source $500 billion in financing for AI infrastructure. The development highlights the enormous capital requirements of the AI buildout, as companies compete for funding with governments and other businesses.
“Companies are spending billions on data centres, chips and other infrastructure. That is great news for companies selling this equipment. But it also means they are competing for capital with governments and other businesses. The AI boom is boosting earnings. But it is also increasing the demand for money,” domestic brokerage firm Vested Finance said. The race for capital is likely to intensify as more companies seek to expand their AI capabilities, potentially putting upward pressure on interest rates and crowding out other investment.
Market Outlook Hinges on Hormuz Talks, Inflation Data and Fed Policy
The stock market’s near-term trajectory hinges on three key factors: developments in the US-Iran standoff and Strait of Hormuz talks, Wednesday’s CPI inflation report, and the Federal Reserve’s policy response. Any progress toward reopening the strait could ease oil prices and alleviate inflation concerns, supporting equity valuations. Conversely, a breakdown in negotiations could send oil prices higher, reigniting inflation fears and prompting a more hawkish Fed stance.
The combination of geopolitical risks, inflation data, and monetary policy uncertainty is likely to keep markets volatile in the coming days. With the Dow and S&P 500 near record levels, investors are watching closely for signs that inflation is cooling or that energy-price pressures could complicate the Federal Reserve’s policy path. The upcoming inflation reports could prove particularly important after a weak jobs report complicated the Fed’s outlook, potentially putting the central bank in a difficult position.
Crude oil prices above $90 and 10-year Treasury yields near 4.73% reflect markets pricing in elevated geopolitical risk and inflation concerns. Wednesday’s CPI report will be pivotal in shaping Federal Reserve rate expectations, with any upside surprise likely to reinforce a hawkish policy stance. Investors should monitor Hormuz developments closely as progress could ease energy costs and support risk assets, while stalled talks may exacerbate volatility across equity and bond markets.
Source
- spglobal.com/spdji/en/indices/equity/sp-500/
Disclaimer
If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.
Please Note: The information shared is intended solely for informational purposes and does not make any investment recommendations
Join Us
Add as preferred source on Google
