[New York Stock Market] All Major Indexes Fall as Market Watches Strait of Hormuz Restrictions

Iran Considers Restricting Passage of Hostile Nations’ Ships
International Oil Prices Close Higher

International oil prices surged and investor sentiment was dampened by corporate earnings announcements, leading all three major U.S. stock indexes to close lower on August 6 (local time) in New York. This came after reports that Iran is considering measures to restrict the passage of vessels affiliated with hostile nations, including the United States and Israel, through the Strait of Hormuz.

At the New York Stock Exchange (NYSE), the Dow Jones Industrial Average fell by 464.02 points (0.85%) to close at 53,885.10. The S&P 500 index, which focuses on large-cap stocks, dropped 13.59 points (0.18%) to 7,709.96, while the tech-heavy Nasdaq declined 15.08 points (0.06%) to settle at 26,348.35.

Inside the New York Stock Exchange. New York (USA) - Photo by Yoonju Hwang

The market reacted with attention to negotiations over shipping through the Strait of Hormuz. According to Iranian media, the Iranian parliament's (Majlis) National Security Committee is currently reviewing a bill that calls for a complete ban on passage through the Strait of Hormuz for vessels belonging to hostile countries, including the United States and Israel.

The current draft of the bill is under expert review, and the parliament has reportedly requested that experts submit feedback to improve its completeness.

In addition, international oil prices rose following reports that Houthi rebels in Yemen had launched a missile attack on a Yemeni government military base.

On the New York Mercantile Exchange, West Texas Intermediate (WTI) for September delivery climbed 2.8% from the previous session to $77.29 per barrel. On the ICE Futures Exchange, Brent crude for October delivery jumped 3.8% from the previous session to $82.49 per barrel.

Jim Reid, strategist at Deutsche Bank, analyzed, "Attention is now shifting from whether an agreement will be reached on passage through the Strait of Hormuz to the content of the final deal, particularly unresolved issues such as whether Iran will be allowed to impose passage fees on vessels using the strait."

Corporate earnings announcements weighed on investor sentiment. Sandisk reported a record revenue of $8.97 billion for the fourth quarter of fiscal year 2026 but closed down 6.8% as results fell short of market expectations.

AppLovin, a mobile advertising platform, dropped 19.6% on disappointing quarterly results. Western Digital, a U.S. HDD manufacturer, provided a quarterly revenue outlook that exceeded projections, but the stock fell 13.0% as investor expectations remained elevated and were not fully met.

Restaurant Brands International, the parent company of Burger King, reported earnings per share of $1.07, beating estimates, and revenue of $2.52 billion, which was in line with expectations.

Burger King enjoyed robust business, with same-store sales up 8.5%, but the performance of RBI’s other brands — including Tim Hortons and Popeyes — was weaker, and the stock ended down 2.0%.

Among the 11 S&P 500 sectors, only energy and information technology advanced, while all other sectors declined. Real estate, materials, and industrials each dropped about 1%, making them the weakest performers.

J. J. Kinahan, head of retail expansion and alternative investment products at Cboe, commented, "After an active period following earnings announcements, it looks like the market is now taking a breather. Even when profits exceed forecasts, if revenue outlooks are weak, stock prices do not always go up."

He also noted the sharp rise in Sandisk and Western Digital shares over the past year, suggesting, "Some profit-taking may have also taken place." Over the past 12 months, Sandisk has surged 3,000%, and Western Digital has jumped more than 500%.

This content was produced with the assistance of AI translation services.