Dow Hits New High, S&P Falls as Investors Hesitate on Middle East Deal

The Dow Jones Industrial Average closed at a record high on August 5, 2026, its fifth straight gain, while the S&P 500 and Nasdaq Composite slipped on post-earnings drops in two watched tech names, even as hopes grew for eased Middle East tension.

The hopes center on the Strait of Hormuz, which carries roughly a fifth of global oil supply. Reuters reported Iran and Oman had discussed giving Tehran more control over ships transiting the strait, and President Trump said a resolution "could happen" within days, though neither government confirmed a deal. Lower oil prices and yields supported the Dow even as gains faded elsewhere.

The Dow rose 263.24 points, or 0.49%, to a record close of 54,349.12. The S&P 500 fell 0.17% to 7,723.55 after an intraday record, and the Nasdaq dropped 0.83% to 26,363.44. SPCX tumbled after its first earnings report as a public company: revenue nearly doubled to $7.8 billion, but a $541 million net loss and a lockup on over 900 million shares unsettled investors. AMD fell about 6% despite record results and above-consensus guidance, seen as not enough to justify its 142% year run.

The Hormuz talks remain unconfirmed, so a stall could unwind the rally. Watch for confirmation alongside further SpaceX and AMD moves as AI spending gets weighed against growth.

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