Stocks gain as tech earnings mix with diplomatic progress on Hormuz
Markets rose modestly on Wednesday with the S&P 500 gaining 0.64% and the Dow up 1.14% following recent record highs. Investors weighed mixed results from technology companies like AMD and SpaceX alongside President Trump's comments about potential progress on reopening the Strait of Hormuz.
The S&P 500 retreated slightly from a record, and the Nasdaq snapped a four-day winning streak, while the Dow reached a fresh closing high. Nvidia advanced notably, but AMD fell despite beating estimates as investors sought exceptional results. SpaceX dropped sharply after its first public report, as heavy AI spending overshadowed a profit beat and a share unlock loomed.
Oil prices held steady as diplomatic efforts to reopen the Strait of Hormuz progressed, with Qatar drafting a proposal and Iran possibly allowing European mine removal. Gold futures jumped 4% on renewed Chinese buying. Eli Lilly climbed 4% after raising its sales forecast on strong weight-loss drug demand, while Disney, Uber, and others also reported.
The divergent market moves could signal a shift toward more discerning investor sentiment, potentially increasing volatility for tech stocks. If the Hormuz negotiations hold, lower oil prices may ease inflation pressures for consumers and businesses, though the fragile nature of the talks means energy costs could rebound quickly. Strong demand for weight-loss drugs may reshape pharmaceutical investment and healthcare spending, but the broader societal impact depends on sustained economic stability and access to these treatments.