US Stocks Subdued as Nasdaq Hovers Near 26,600 Amid Hormuz Uncertainty and Inflation Data Jitters

Mumbai, Aug 10: Wall Street’s major indices opened largely flat on Monday, with the Nasdaq Composite slipping 0.12% to 26,657.61, as investors weighed conflicting signals from the US and Iran over the potential reopening of the Strait of Hormuz. The S&P 500 edged up 0.04% to 7,760.80, while the Dow Jones Industrial Average declined 0.12% to 53,973.56 in early trading, as markets braced for a crucial week of inflation data and corporate earnings that could shape the Federal Reserve’s policy trajectory. 

Nasdaq Composite Slips 0.12% to 26,657.61 as Intel Drags Tech Sector Lower 

The tech-heavy Nasdaq Composite opened at 26,680.44, touching a session high of 26,685.27 and a low of 26,603.13, before settling at 26,657.61, down 33.00 points or 0.12%. Trading volume stood at 1.66 billion shares, significantly below the average volume of 9.77 billion, indicating cautious participation from investors ahead of key economic releases. 

Also Read: What Is the New York Stock Exchange (NYSE)?  

The index’s 52-week range currently spans 20,690.25 to 27,190.21, with the Nasdaq now trading approximately 1.96% below its record high. The muted performance follows last week’s robust gains, where the index recorded its strongest weekly performance since April, buoyed by softer-than-expected July nonfarm payrolls data that eased rate hike concerns. 

Dow Jones Industrial Average Drops 63 Points as Apple and Home Depot Lead Declines 

The Dow Jones Industrial Average opened at 54,072.66, mirroring its previous close, before retreating to 53,973.56, down 63.37 points or 0.12%. The index traded within a narrow range of 53,866.69 to 54,072.66, with volume reaching 66.86 million shares against the average of 540.43 million. 

Among the 30 blue-chip constituents, Chevron (CVX) emerged as the top performer, advancing 2.87% as oil prices rallied amid Hormuz uncertainty. Cisco Systems (CSCO) gained 2.17%, while IBM rose 2.01%. On the downside, Home Depot (HD) slumped 1.99%, Apple (AAPL) declined 1.93%, and Travelers (TRV) fell 1.57%. The index’s 52-week range stands at 43,911.31 to 54,744.33, with the Dow now just 1.41% below its all-time high. 

S&P 500 Edges Up 0.04% to 7,760.80 as Energy and Tech Sectors Diverge 

The broader S&P 500 showed resilience, gaining 3.16 points or 0.04% to reach 7,760.80, after opening at 7,751.74. The index traded within a narrow band of 7,748.42 to 7,761.89, with volume at 380.88 million shares versus the average of 5.57 billion. 

The benchmark index’s 52-week range spans 6,316.91 to 7,793.68, with the S&P 500 currently trading 0.42% below its record closing high achieved on Friday. The index has now gained over 13% year-to-date, driven largely by strong corporate earnings, particularly from artificial intelligence-linked companies. 

Energy Stocks Surge as Oil Hits $80 on Growing Doubts Over Hormuz Deal 

Crude oil prices rallied sharply on Monday, with US West Texas Intermediate (WTI) futures climbing 2.4% to $80.03 per barrel, while international benchmark Brent crude advanced 2.4% to $85.53 per barrel. The rally came as doubts intensified over whether the US and Iran would reach a lasting resolution regarding the Strait of Hormuz. 

Also Read: How to invest in crude oil

The strategic waterway, through which approximately 20% of global oil supply passes, has remained a critical point of tension. Exxon Mobil (XOM) surged 3.11% on the S&P 500, while Chevron (CVX) advanced 2.87%, leading the energy sector higher. The oil price rally follows last week’s decline to as low as $74 per barrel amid optimism that a deal was imminent. 

Intel Plunges Over 4% After Announcing $15 Billion Common Stock Offering 

Intel Corporation (INTC) emerged as one of the session’s biggest laggards, with shares tumbling 4.35% to $97.23 after the chipmaker announced plans to raise $15 billion through a common stock offering. The company stated it intends to use the proceeds for general corporate purposes, including capital expenditures and working capital. 

Intel said its customers “continue to signal a strong and sustainable demand environment” as a result of the artificial intelligence boom, and the offering is designed to provide additional support as the company pursues future growth opportunities. The stock’s decline follows a nearly threefold surge in its share price this year, as investors had priced in expectations of a turnaround in the chipmaker’s fortunes. 

The announcement raised concerns about shareholder dilution, with the company aiming to capitalise on its elevated stock price to fund the costly expansion of its contract chip-manufacturing business and challenge industry leader TSMC. Intel reported over $16 billion in sales for the second quarter of the year, demonstrating the scale of its operations despite recent market turbulence. 

Vertex Pharmaceuticals Jumps 9% as Nasdaq 100 Heatmap Shows Mixed Tech Performance 

The Nasdaq 100 heatmap revealed a mixed picture among technology heavyweights. Vertex Pharmaceuticals (VRTX) led the index with a 6.00% surge, while Marvell Technology (MRVL) advanced 4.92% and CrowdStrike (CRWD) climbed 4.76%. Palo Alto Networks (PANW) gained 4.60%, and Fortinet (FTNT) rose 4.08%. 

However, semiconductor stocks faced pressure beyond Intel’s decline. Arm Holdings (ARM) tumbled 4.21%, Advanced Micro Devices (AMD) fell 1.27%, and Nvidia (NVDA) declined 0.91%. Apple (AAPL) dropped 1.95% following a downgrade from Jefferies, while Microsoft (MSFT) bucked the trend, advancing 1.61%. 

Meta Platforms Gains 1% as Zuckerberg Champions Open-Source AI Vision 

Meta Platforms (META) share rose 1.04% to $598.28 after CEO Mark Zuckerberg released a detailed essay outlining his vision for artificial intelligence, calling for lower US barriers for open-source AI models. The company also launched a new open-weight model called Muse Glimmer, designed for agentic tasks that can run on a Mac or PC with a single graphics card. 

Zuckerberg emphasised the importance of “the US and its allies lead the open source AI ecosystem that will make up a large percent of global AI use.” The new model is significantly smaller than leading AI models from rivals, aiming to tap demand for AI systems that run directly on personal devices. The move comes as Meta seeks to strengthen its position after forming a costly superintelligence team last year. 

SpaceX Stock Extends Rally as Lockup Expiration Unlocks Insider Shares 

SpaceX (SPCX) shares climbed 2.4% to extend last week’s 22.8% surge, with the stock trading above its $135 IPO price for the first time since July 16. The rally follows Citi reaffirming its $200 price target for the stock in a note Monday. 

Also Read: How to invest in US stocks 

Last week marked the expiration of SpaceX’s first lockup period, which freed more than 900 million restricted insider shares. The stock had previously hit a record low after the company issued its first quarterly results since going public in mid-June. Retail investors, who had spent weeks defending the stock through its post-IPO run, turned net sellers on Friday, marking the first net negative reading since the company’s June 12 debut, according to Vanda Research data. 

Berkshire Hathaway Shares Climb 2.66% After Strong Earnings and Buyback Plans 

Berkshire Hathaway (BRK-B) advanced 2.66% on the S&P 500 after the conglomerate released a strong earnings report showing CEO Greg Abel, who replaced Warren Buffett at the start of the year, is willing to deploy the company’s substantial cash holdings on stock buybacks and equity investments. 

The company’s Class B shares rose despite broader market caution, demonstrating investor confidence in the conglomerate’s financial position and Abel’s strategic direction. Berkshire’s earnings beat analyst expectations, though specific figures were not detailed in the opening session data. 

Gold Eases 0.2% After Seven-Week High as Dollar Strengthens 

Gold prices retreated slightly on Monday, with spot gold sliding 0.2% to $4,335.27 per ounce, as a firmer US dollar pressured the precious metal. The decline follows prices hitting a seven-week high on Friday after an unexpected drop in US nonfarm payrolls. 

Comex gold futures dipped 0.1% to $4,394.00, while the metal gained nearly 7% last week, its best performance since February. Gold futures reclaimed their 50-day moving average, breaking the downtrend that had controlled prices since March, with Wednesday’s 4% surge marking the biggest one-day jump since February. 

Aluminium Strikes Seven-Week High as Inventories Continue to Decline 

Aluminium prices rose for a sixth consecutive session on Monday, striking their highest level in almost seven weeks as exchange inventories of the lightweight metal continued to be depleted. Benchmark three-month aluminium on the London Metal Exchange advanced 1.2% to $3,320 per metric ton, after earlier touching $3,336.50, its highest since June 23.

Also Read: US Stock Market Timings  

The inventory draw reflects continued demand for the metal despite broader economic uncertainties. The sustained rally in aluminium prices has been driven by supply constraints and stable industrial demand, though the geopolitical backdrop continues to influence commodity markets broadly. 

Barrick Mining Shares Drop 5.2% as Q2 Profit Misses Wall Street Estimates 

Barrick Mining’s US-listed shares fell 5.2% in premarket trading after the company’s second-quarter profit fell short of Wall Street expectations. The mining company’s disappointing performance weighed on the materials sector, though broader market data showed the segment largely holding steady. 

The earnings calendar for this week is relatively light, with Applied Materials (AMAT) and Cisco Systems (CSCO) among the few major companies due to report. Barrick’s miss underscores the challenges facing mining companies amid fluctuating commodity prices and geopolitical uncertainty. 

GameStop Rises 2% on Report of Potential eBay Bid Withdrawal 

GameStop (GME) shares jumped more than 2% after Bloomberg reported that the company is weighing abandoning its $56 billion bid for eBay. GameStop’s unsolicited bid was originally rejected by eBay in May, where the online retailer called it “neither credible nor attractive.” 

Also Read: What Are Fractional Shares? 

In June, GameStop CEO Ryan Cohen said he would not receive a $35 billion compensation package contingent on meeting certain performance metrics, so that the company could focus on the eBay acquisition. The push by GameStop to acquire eBay has largely confused Wall Street, primarily due to what the videogame retailer was prepared to pay for it. While GameStop offered $56 billion for eBay, its market cap as of Friday’s close was less than $9 billion, highlighting the significant premium the company was willing to pay. 

Hewlett Packard Enterprise Gains 5% as Morgan Stanley Upgrades to Overweight 

Hewlett Packard Enterprise (HPE) shares rose more than 5% after Morgan Stanley upgraded the stock to overweight from equal-weight. Analysts at the bank said the company has an attractive risk/reward profile at the moment, and that the market is underappreciating the asymmetry between HPE’s earnings power and valuation. 

The upgrade added to the positive sentiment in the technology sector, though gains were tempered by broader market caution. HPE’s performance comes as the company continues to position itself in the enterprise technology space, competing with larger rivals in the data centre and cloud infrastructure markets. 

Verisk Analytics Tumbles 6.5% After Court Ruling on AccuLynx Acquisition 

Verisk Analytics shares tumbled more than 6.5% after a Delaware judge on Friday ruled it must proceed with a $2.35 billion acquisition of AccuLynx. Verisk previously terminated a deal in December because a Federal Trade Commission review of the merger was not completed by the transaction’s termination date. 

The court ruling represents a significant setback for the data analytics company, which had attempted to walk away from the deal. The acquisition would provide Verisk with AccuLynx’s property and casualty insurance analytics capabilities, but the company had apparently reconsidered the transaction’s value amid regulatory scrutiny. 

Apple Falls 1% After Jefferies Downgrade on All-Glass iPhone Cancellation Concerns 

Apple (AAPL) declined 1% after Jefferies downgraded the stock to underperform from hold. According to the bank’s supply chain checks, an all-glass iPhone by Apple, something the company has never publicly announced, appears to be cancelled. This puts pressure on Apple, which is trying to create more expensive devices to combat the rising cost of memory. 

The downgrade follows Apple’s recent performance, with the stock having been on a four-day winning streak prior to Monday’s decline. The cancellation of the all-glass iPhone project, if confirmed, would represent a setback for Apple’s premium product strategy. The company has been working to differentiate its flagship smartphone through innovative materials and design, making this development particularly significant for investors tracking the tech giant’s product roadmap. 

Iranian Foreign Minister Rules Out Direct US Negotiations as Hormuz Deal Remains Elusive 

Iranian Foreign Minister Abbas Araghchi stated on Sunday that there was “no possibility of restarting negotiations” as long as the United States continues violating the June memorandum of understanding, without compensating for its “violations,” according to Tasnim News Agency, a semi-official news outlet associated with the Islamic Revolutionary Guard Corps. 

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Iran has said it is closing in on a deal with Oman to reopen the Strait of Hormuz, but Tehran has continued to resist direct negotiations with Washington until several conditions are met. The comments contradict recent signals from the Trump administration that a deal may be imminent. 

President Trump Says US ‘Semi-Negotiating’ With Iran as Tensions Escalate 

President Donald Trump told Axios on Sunday that the United States was “only semi-negotiating” with Iran and wanted the Middle Eastern country to feel economic pressure. Last week, Treasury Secretary Scott Bessent’s comments to CNBC had strongly indicated a deal was imminent. 

The President’s latest remarks have cast doubt on the prospects for a near-term resolution, contributing to the oil price rally and broader market caution. The mixed signals from Washington and Tehran have left investors uncertain about the direction of energy markets and their implications for inflation and interest rates. 

JPMorgan Raises S&P 500 Price Target to 8,000 on Strong Earnings Broadening 

JPMorgan strategist Dubravko Lakos-Bujas lifted his price target on the S&P 500 to 8,000 from 7,800 on Monday, citing the broadening of corporate earnings across multiple sectors. With 87% of S&P 500 companies having reported, the earnings picture remains strong and broad-based, according to the strategist. 

78% of companies are beating earnings estimates, and 73% are beating revenue estimates. Roughly 61% of companies have had double beats, and only 10% have had both revenue and earnings misses. Since the beginning of earnings season, earnings per share revisions have also increased, providing fundamental support for equity valuations. 

Fed Rate Hike Probability Drops to 44% After Weak July Jobs Report 

July nonfarm payrolls unexpectedly contracted, with the US economy shedding jobs while previous months were revised lower, reducing the urgency for further Federal Reserve tightening in the near term. According to CME’s FedWatch tool, traders are now pricing in a 43.9% to 46% probability of a rate hike at the September meeting, down from 67% a week earlier. 

The weaker employment picture has temporarily assuaged concerns about immediate monetary policy tightening, though Federal Reserve officials remain divided on the path forward. Deutsche Bank analysts noted in a Monday note that the weaker data has “reduced the urgency for further Fed tightening in the near term,” though persistent inflation pressures could still prompt action. 

Treasury Yields Inch Lower as Markets Await Wednesday’s CPI Inflation Report 

US Treasury yields inched lower at the start of the week, with the 10-year Treasury yield dropping just over 1 basis point to 4.68%, while the 30-year Treasury bond similarly declined 1 basis point. The 2-year Treasury note yield was trading just above the flatline at 4.21%. 

Also Read: Understanding Dow Jones Industrial Average (DJIA) – A Complete Guide 

The yield declines follow last week’s drop to 4.60% on Friday morning after the release of the weaker-than-expected jobs data. Investors are looking ahead to a busy week of economic data, with the July Consumer Price Index (CPI) report scheduled for Wednesday taking centre stage in determining the inflation outlook and potential Fed response. 

Inflation Expectations and CPI Forecasts Signal Potential Market Moves 

Economists expect July headline CPI to rise 3.4% year-over-year, while core CPI is forecast at 2.5%, according to Reuters. The inflation readings could provide fresh clues about the Federal Reserve’s policy direction, with a softer-than-expected report potentially easing concerns about additional rate increases, while a stronger reading could revive expectations for tighter monetary policy. 

The cost-of-living measure ticked down in June before the US-Iran ceasefire fell apart and fighting in the Middle East escalated. The conflict has curtailed oil shipments through the Hormuz and Bab el-Mandeb Straits, sending energy prices higher and putting upward pressure on other prices. Producer Price Index (PPI) data for July is due Thursday, with the index having dipped in June after surging in May. 

Retail Sales and Consumer Sentiment Data to Provide Economic Health Check 

July retail sales data is expected Friday, following a slight increase in consumer spending in June. The public mood recently brightened a bit, according to the University of Michigan’s Survey of Consumer Sentiment, though savings rates hit a four-year low. 

Developments including chatter about an AI bubble and new tariffs may have shifted consumers’ outlook. The retail sales report will provide another signal on the US economy’s health and consumer resilience amid elevated energy prices and geopolitical tensions. 

Aluminium and Commodity Markets React to Global Supply Chain Concerns 

Beyond oil and gold, aluminium prices continued their upward trajectory, rising for the sixth straight session as exchange inventories of the lightweight metal continue to be depleted. Benchmark three-month aluminium on the London Metal Exchange was up 1.2% at $3,320 per metric ton in official open outcry activity, having earlier touched $3,336.50, its highest since June 23. 

The inventory draw reflects continued demand for the metal despite broader economic uncertainties, though the geopolitical backdrop continues to influence commodity markets broadly. Sustained aluminium price strength could complicate the inflation picture and make the Federal Reserve’s policy decisions more difficult. 

Plug Power, T. Rowe Jump; BIO-Key, Check-Cap Plunge on Earnings and Corporate Actions 

Plug Power Inc. (PLUG) gained 6.42% in premarket trading ahead of its earnings release scheduled after the closing bell, with analysts expecting a loss of 8 cents per share on revenue of $168.8 million. T. Rowe Price Group Inc. (TROW) advanced 8.10% after its recent second-quarter earnings report highlighted $1.91 billion in revenue, slightly below estimates. On the downside, BIO-Key International Inc. (BKYI) fell 7.92% after the company, along with its strategic partner Visualforma, was awarded a new contract to enhance digital identity security for a Portuguese national security agency. Check-Cap Ltd. (MBAI) declined 4.26% as it announced a 1-for-7 reverse share split, effective on August 12. Among other earnings movers, Embraer (EMBJ) shares jumped more than 6%, while Ferguson Enterprises (FERG) lost 1.5% in premarket trading. 

Retail Investors Turn Net Sellers of SpaceX Shares for First Time Since IPO 

Retail investors who spent weeks defending SpaceX through its post-IPO run turned net sellers on Friday, marking the first such instance since the company’s blockbuster debut in June. Mom-and-pop traders sold a net $4.5 million in Elon Musk’s rocket company on August 7, the first net negative reading since the company went public on June 12, according to Vanda Research data. 

The shift in retail investor behaviour comes as the stock has rallied significantly following its lockup expiration, suggesting some profit-taking among individual investors who had supported the stock during its initial volatile trading period. The $4.5 million net selling represents a notable reversal from the pattern of sustained retail buying that had characterised the stock’s first two months of trading. 

The S&P 500’s muted opening reflects investor caution amid conflicting US-Iran signals and anticipation of Wednesday’s CPI data, with markets pricing a 44% probability of a September rate hike following weaker July payrolls. While strong corporate earnings, with 78% of S&P 500 companies beating estimates, provide fundamental support, oil price volatility and geopolitical uncertainty remain key risks. The record-breaking year-to-date gain of over 13% for the benchmark index suggests markets are positioned for further clarity on inflation and Federal Reserve policy direction. 

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