Hormuz Drama Subsides; Wall Street Hits Record Highs
Wall Street closed sharply higher on Tuesday (Aug 4) as hopes for a US-Iran deal boosted risk sentiment. The S&P 500 rose 1.8% to a record 7,736.52, while the Dow Jones surged 907 points to a high of 54,085.88. The Nasdaq Composite also jumped 2.6% to 26,584.99, led by technology and artificial intelligence stocks.
Optimism grew after Qatar announced that a draft de-escalation proposal had been prepared and circulated to relevant parties. US officials also expressed hope that an interim agreement could soon reopen the Strait of Hormuz. These hopes pushed Brent crude below US$80 per barrel and exerted downward pressure on US bond yields, as the risk of energy-driven inflation appeared to be easing.
Palantir shares were among the biggest movers, surging nearly 30% on raised revenue guidance and strong commercial sales. Caterpillar rose about 6% after beating quarterly estimates and reporting strong demand driven by AI data center construction.
The rally extended to the semiconductor sector. The Philadelphia Semiconductor Index jumped approximately 6.6%, while the S&P 500 technology sector rose 4.5%. These gains indicate that investors are once again snapping up AI and chip stocks following the high volatility that weighed on the sector in July.
After the market closed, attention shifted to reports from AMD and SpaceX. AMD posted second-quarter revenue of US$11.5 billion and adjusted earnings of US$1.66 per share, though its stock fell in after-hours trading. SpaceX reported revenue of US$7.8 billion—a 92% year-over-year increase—but still recorded a net loss of US$541 million.
Newsmaker Analysis: Wall Street sentiment remains bullish as US-Iran diplomacy progresses and oil prices hold below US$80. However, the index's record-high position and negative reactions to several after-hours reports could trigger profit-taking. The S&P 500 needs to hold above 7,700 to pave the way for a move toward the 7,760–7,800 range. If it falls below 7,700, a correction could potentially lead to levels between 7,650 and 7,600. (arl)
Source: Newsmaker.id
