S&P 500 and Dow Hit Record Highs on Middle East Peace Hopes, While Tech Stocks Drag

Aug 5, 2026

The S&P 500 and Dow Jones Industrial Average reached consecutive record highs, propelled by strong corporate earnings and optimism surrounding a potential U.S.-Iran deal to reopen the Strait of Hormuz, which sent Brent crude prices down 5%. However, tech stocks faced headwinds. SpaceX plunged 10% after its inaugural public earnings report revealed a massive $18.4 billion capital expenditure program heavily focused on AI, while AMD slid 6.5% despite beating estimates. Meanwhile, Nvidia rose 4% after Elon Musk announced SpaceX would exclusively use its chips.

S&P 500 record highs

▪The S&P 500 closed at a record high of 7,736.52 on August 4, 2026, marking its first closing record since July 2, 2026.
▪The S&P 500 and Dow Jones Industrial Average reached new intraday record highs on the morning of August 5, 2026.
▪The Dow Jones Industrial Average rose 907.47 points, or 1.71%, to close at a record high of 54,085.88 on August 4, 2026.

Middle East peace deal optimism

▪Iran and Oman are negotiating a temporary draft agreement that would give Tehran control over inbound ship traffic through the Strait of Hormuz.
▪Brent crude futures fell about 5% to settle at $79.36 per barrel on August 4, 2026, on hopes of a diplomatic resolution to the Iran conflict.
▪U.S. Treasury Secretary Scott Bessent stated on August 4, 2026, that a deal with Iran to reopen the Strait of Hormuz could come within the next two days.

SpaceX earnings disappointment

▪SpaceX shares fell as much as 10% on August 5, 2026, as investors reacted to the company's $18.4 billion in quarterly capital expenditure, with close to $16 billion directed at xAI.
▪SpaceX reported revenue of $7.8 billion and an adjusted EBITDA of $3.5 billion for its first quarterly earnings report as a public company.

AMD earnings stock decline

▪Advanced Micro Devices forecast quarterly revenue above estimates, but its shares fell over 6% on August 5, 2026, as investors sought a stronger outlook.
▪Advanced Micro Devices shares had risen 142% in 2026 prior to the post-earnings stock decline on August 5, 2026.

Nvidia exclusive SpaceX partnership

▪Elon Musk announced during SpaceX's earnings call that the company will exclusively buy Nvidia chips for its AI infrastructure buildout for the foreseeable future.
▪Nvidia shares rose 4% on August 5, 2026, following Elon Musk's announcement regarding the exclusive chip partnership.

Booking Holdings earnings beat

▪Booking Holdings shares rose 6% on August 5, 2026, despite CEO Glenn Fogel noting near-term volatility from the Middle East conflict.
▪Booking Holdings reported adjusted earnings of $2.54 per share on revenue of $7.35 billion, beating analysts' estimates of $2.41 per share and $7.19 billion.