The Dow Jones Industrial Average pushed to fresh record territory Wednesday on reports of a tentative Iran-Oman deal over the Strait of Hormuz, while the Nasdaq reversed lower as Astera Labs, SpaceX and Advanced Micro Devices tumbled on earnings reactions. The S&P 500 trimmed its advance to a fraction of a percent as six of its eleven sectors slipped.
The Dow Jones Industrial Average rose more than 400 points, or 0.8%, before paring that gain. The advance came after Iran and Oman reached a memorandum of understanding on coordinates for routes through the Strait of Hormuz, according to Reuters citing Iran's Foreign Ministry. Stocks had opened higher after President Trump told reporters late Tuesday that talks on reopening the strait had progressed and an agreement could land Wednesday or Thursday.
Nasdaq drags on tech earnings reactions
Astera Labs, SpaceX and Advanced Micro Devices led the pullback on the Nasdaq, which reversed into the red, losing 0.4%. Astera Labs and SpaceX each fell more than 10%, and Advanced Micro Devices lost 6%.
Shares had run up for four straight days into the earnings report and got turned away at their 50-day moving average. Astera Labs' second-quarter earnings of 80 cents a share on $392 million in sales topped estimates of 69 cents and $361 million.
S&P 500 gain narrows as sectors split
The S&P 500 trimmed its advance to 0.1%, with six of its 11 sectors moving lower. Tech gained but lagged a rise in the defensive materials and health sectors.
Both the S&P 500 and the Dow had closed at record highs on Tuesday. Small caps turned lower too, with the Russell 2000 down 0.4%.
Weak jobs data adds to the mix
Early Wednesday, ADP said private payrolls rose 44,000 in July, well below the 75,000 expected and down sharply from a 98,000 increase in June. The data is a precursor to Friday's jobs report from the Labor Department.
West Texas Intermediate crude futures fell 1% to $74.75 a barrel. The 10-year Treasury yield ticked up 1 basis point to 4.63%.
Source: Investor's Business Daily
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