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2h ago

U.S. Stocks Hit New Highs as Oil Retreats on Signs of Progress Over Strait of Hormuz

Markets rallied on strong corporate results and easing energy risk, which pushed inflation fears and Treasury yields lower and altered near‑term Fed odds.

A screen shows trading of the S&P 500 Index after the opening bell at the New York Stock Exchange (NYSE) in New York City, U.S., August 5, 2026. REUTERS/Jeenah Moon
Image
Photo: giggel / Wikimedia Commons / CC BY 3.0 (https://creativecommons.org/licenses/by/3.0)
The Pad 2 chopsticks hoist Starship 40 at the SpaceX launch complex to stack the spacecraft atop booster 20 as preparations continue for the second attempt of the 13th test flight of the Starship spacecraft and the Super Heavy v3 booster in Starbase, Texas, U.S., July 22, 2026. REUTERS/Steve Nesius/File Photo

Overview

  • Major U.S. indexes reached fresh records after a wave of better‑than‑expected quarterly reports and renewed appetite for AI and semiconductor stocks helped lift the S&P 500, Dow and Nasdaq.
  • Comments from Treasury Secretary Scott Bessent and other mediators suggesting a possible deal to reopen the Strait of Hormuz sent oil prices down to the mid‑$70s to low‑$80s per barrel and removed part of the wartime energy premium.
  • The slide in crude helped 10‑year Treasury yields fall into the mid‑4% range, which reduced market expectations for an additional Fed rate increase this fall and supported higher equity valuations.
  • Earnings produced mixed reactions: Palantir jumped nearly 30% after beating forecasts, while SpaceX sank after reporting $18.4 billion of Q2 capital spending and AMD fell despite a narrow beat as investors focused on heavy AI capex and supplier choices.
  • Investors are watching upcoming U.S. jobs and inflation data for confirmation that the rally can persist because those releases will shape Fed policy expectations and the outlook for borrowing costs.