Dow Hits Record on Iran Deal Hopes; SpaceX Drops 13.6%
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- Dow Jones Industrial Average closed at a record 54,349.06, up 263.18 points (0.49%), while the Nasdaq Composite fell 0.83% to 26,363.44 and the S&P 500 slipped 0.17% to 7,723.52—the sharpest market divergence in days.
- A proposed deal between Iran and Oman would give Tehran control over ships entering the Gulf through the Strait of Hormuz, described in the Reuters report as "one of the biggest concessions yet to Iran."
- SpaceX shares plunged 13.6% after its first earnings report since going public, despite revenue nearly doubling and operating losses narrowing, as investors fixated on AI data-center spending; the stock faces added pressure from its post-IPO lockup expiry starting Thursday.
- AMD forecast quarterly revenue above estimates on strong AI demand, but its shares dropped 7% as investors "look for greater evidence the massive AI spending will result in faster growth."
- Eli Lilly rose 4.9% after raising its full-year revenue forecast, while Amgen jumped 4.6% (contributing more than 100 points to the Dow), lifting the S&P 500 healthcare sector up 1.3%.
- ADP reported U.S. private payrolls grew by just 44,000 in July, while Minneapolis Fed President Neel Kashkari said it is time to "slowly start moving interest rates higher"—even as September rate-hike odds dipped to 54.9% from 58.3% a week earlier.
- Kenny Polcari of Slatestone Wealth called the rally "a straight rocket shot" but warned the market "is not going to give it to you this time until we actually see the progress," citing four months of being "jerked around" on Iran deal optimism.
Why it matters: The Dow's record close hinges on a deal that hands Iran control of Strait of Hormuz shipping—a concession Reuters flagged as one of Tehran's biggest wins in years. SpaceX's 13.6% plunge and AMD's 7% drop show investors now demand faster AI-driven growth, pressuring the entire AI capex trade ahead of more earnings.
