The Dow Jones Industrial Average climbed to a fresh record high on Wednesday, joining the S&P 500 at a new all-time intraday level as strong corporate earnings and hopes for a U.S.-Iran deal on the Strait of Hormuz lifted sentiment. A weaker-than-expected jobs report and drops in AMD and SpaceX shares failed to derail the rally.
The Dow advanced 617 points, or 1.1%, to a fresh all-time high on Wednesday, while the S&P 500 touched its own record intraday level and the Nasdaq Composite added 0.1%. All three indexes are tracking their best five-day performance since April 2025.
That gain builds on Tuesday's session, when the S&P 500 closed above 7,700 for the first time and the Dow jumped more than 900 points for another record close. Over the past week, the S&P 500 has gained more than 6%, while the Dow and Nasdaq have risen more than 5% and more than 9%, respectively.
Earnings beats fuel the rally
Dow member Disney rose more than 2% on better-than-expected fiscal third-quarter earnings, while Eli Lilly climbed 7% after its second-quarter earnings and revenue beat estimates. The two reports add to a strong earnings season, in which more than 84% of S&P 500 companies have beaten expectations, according to FactSet.
Hormuz hopes calm oil markets
Oil prices held steady Wednesday after falling Tuesday, when Treasury Secretary Scott Bessent said the U.S. and Iran could be closing in on a deal to reopen the Strait of Hormuz. West Texas Intermediate futures for September delivery traded near $75 a barrel, while Brent crude for October delivery rose 1% to about $80 a barrel. President Trump, en route to California Tuesday, said an agreement to reopen the strait could be announced Wednesday or Thursday, according to Investor's Business Daily.
AMD, SpaceX drop as jobs data cools
Not every corner of the stock market joined the advance, however. Advanced Micro Devices shares fell 4% even after adjusted earnings came in slightly ahead of estimates, and SpaceX shares plunged 12% after its first quarterly report since going public in June. The rocket company's capital expenditures jumped sixfold to $18.4 billion in the second quarter, with most of the spending going toward artificial intelligence.
Traders also looked past a soft jobs report: private payrolls rose by 44,000 in July, below the 95,000 added in June and the 75,000 forecast, ADP data showed.
Sources: US Top News and Analysis, Investor's Business Daily
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