Key facts
- The S&P 500 and Nasdaq Composite opened higher on Tuesday.
- The Dow Jones Industrial Average opened lower.
- Investors are weighing a report suggesting the U.S. and Iran are close to an arrangement to end conflict.
- Pakistan's defence minister stated that signals indicated a peace agreement was close.
- Qatar's foreign ministry reported Iran-Oman talks were in an advanced stage.
U.S. stock indexes opened mixed on Tuesday, with the S&P 500 and Nasdaq Composite advancing while the Dow Jones Industrial Average experienced a slight decline. Investors are weighing reports suggesting a potential peace arrangement between the U.S. and Iran to end six months of conflict.
Major stock indexes concluded Thursday with gains, as the S&P 500 and Nasdaq Composite reached new record highs. The Nasdaq, S&P 500, and Dow Jones Industrial Average closed Thursday up 0.4%, 0.3%, and 0.2% respectively. Technology shares faced downward pressure following disappointing investor reactions to company forecasts, with sectors such as energy and consumer staples leading gains.
In the semiconductor sector, Intel and AMD experienced drops, and the Philadelphia Semiconductor Index fell 1.5%. Software stocks also saw significant selling. AppLovin plunged 17.4% after its quarterly revenue missed expectations, while Datadog slid 16.7% after warning of a slowdown in third-quarter revenue growth. Conversely, Parker-Hannifin climbed 8.5% after forecasting full-year profit above expectations, and lithium miner Albemarle rose 6.7% after beating quarterly profit estimates. Most megacap stocks advanced, including Microsoft and Amazon, which gained about 1% each. SpaceX climbed 2% ahead of its post-IPO share lock-up expiry.
Strong earnings from leading technology companies have bolstered confidence in AI investments, contributing to record highs for the S&P 500 and Dow earlier in the week. The Nasdaq remained approximately 3% below its all-time high. Investors were also monitoring developments related to a potential Middle East peace deal, with Brent crude trading near $80 a barrel. On the economic front, U.S. jobless claims rose slightly last week, with attention turning to Friday's July nonfarm payrolls report, which could influence expectations for the Federal Reserve's interest-rate path.