Wall Street Mixed as Hopes for Hormuz Reopening Lead to Pause; Nasdaq Falls 0.8%

Wall Street, which has enjoyed a rally over the past few days, took a breather and closed mixed on the 5th (local time).

On this day, the Dow Jones Industrial Average rose 263.24 points, or 0.49%, to close at 54,349.12.

The S&P 500 fell 12.97 points, or -0.17%, to 7,723.55, while the tech-heavy Nasdaq Composite dropped 221.55 points, or -0.83%, to finish at 26,363.44.

The S&P 500, which broke an all-time closing high the previous day, set a new intraday record high at the open before turning downward and ultimately closing lower.

Amid expectations for the reopening of the Strait of Hormuz, Wall Street, which had rallied for four consecutive sessions, showed signs of entering a consolidation phase while monitoring developments in the Middle East.

Iran stated that an agreement had been reached on the geographical coordinates for the proposed shipping lanes regarding negotiations over the Strait of Hormuz with Oman, and oil prices also showed mixed movements while reacting sensitively to the news.

Brent crude futures settled at $79.45 a barrel, up 0.1% from the previous session, while U.S. West Texas Intermediate (WTI) crude futures settled at $75.22 a barrel, down 0.7%.

José Torres, senior economist at Interactive Brokers, told Bloomberg that investors are awaiting tangible progress in the Middle East, assessing that "it is natural for Wall Street to take a brief breather."

Alphabet, Google's parent company, fell 4.06% on news that senior scientist Jeff Dean, referred to as a legend within Google, is leaving the company, leading the weakness in tech stocks.

Semiconductor firm AMD tumbled 7.04% despite posting better-than-expected earnings after the market close the previous day, as its future revenue outlook fell short of investor expectations.

Pharmaceutical company Eli Lilly rose 4.86% after raising its full-year revenue outlook, driven by surging sales of its obesity treatment.

Artificial intelligence (AI) chip leader Nvidia gained 3.44% after SpaceX announced it will exclusively use Nvidia chips to build its data center infrastructure.

Meanwhile, SpaceX plunged 13.61% as investors grew concerned over massive capital expenditure spending in its earnings report released the previous day, its first since going public.

Concerns that lock-up restrictions would be lifted starting on the 6th and exert downward pressure on the stock price also contributed to expanding the losses.

SK Hynix's American Depositary Receipts (ADRs) declined 2.17% on the day.
※ Please note: This article was translated by AI and may contain errors.