[New York Stock Exchange] Hormuz Strait Reopening Unlikely... Markets Broadly Declining

US-Iran Talks at Standstill as Oil Prices Surge
Intel Drops 3% on Announcement of New Share Issue

On August 10 (local time), the three major U.S. indexes are showing mixed trends. With negotiations between Iran and the United States at a stalemate, Intel's announcement of plans to issue $15 billion worth of new shares is dragging down the Nasdaq index.

As of 9:50 a.m. on the New York Stock Exchange (NYSE), the Dow Jones Industrial Average is at 53,930.49, down 106.44 points (0.40%) from the previous trading day. The S&P 500 index, which focuses on large-cap stocks, is down 4.05 points (0.06%) at 7,753.59, while the tech-heavy Nasdaq index is down 44.08 points (0.17%) at 26,646.52.

New York Stock Exchange. New York, USA - Photo by Yoonjoo Hwang

Investor sentiment appears subdued today due to concerns that the impasse in negotiations between the United States and Iran could be prolonged. Iran stated that an agreement with Oman to reopen the Strait of Hormuz is imminent. However, Iran continues to refuse direct negotiations with the United States until several conditions are met.

According to Iranian media, Iranian Foreign Minister Abbas Araghchi demanded U.S. war reparations and the lifting of sanctions over the past weekend as conditions for resuming talks. In response, U.S. President Donald Trump said the U.S. would respond with economic pressure rather than military action.

As a result, global oil prices have risen across the board. On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude for September delivery is up 3.11% from the previous session to $80.67 per barrel. On the ICE Futures Exchange, Brent crude for October delivery is up 2.97% from the previous session to $86.13 per barrel.

On the Nasdaq, Intel is down 4.25% from the previous trading day. This is due to the company’s announcement that it will issue $15 billion in new shares to invest in artificial intelligence (AI) and other sectors. Meanwhile, Berkshire Hathaway is up 3.0% from the previous trading day after announcing it conducted $4.5 billion in share buybacks in the second quarter.

This week, there are few major positive catalysts expected to move the market. According to Bloomberg, investors are expected to gauge AI trends and the outlook for semiconductor companies through upcoming earnings announcements from companies such as Applied Materials and Cisco in the coming days.

Over the past few weeks, 445 companies accounting for more than 82% of the S&P 500’s market capitalization have reported earnings. Of these, 85% posted results exceeding expectations, marking the highest level since 2021.

Dubravko Lakos-Bujas, a strategist at JPMorgan Chase, raised his year-end target for the S&P 500 in 2026, citing a strong earnings season and faster-than-expected upward revisions in profit forecasts from AI-related companies.

Ellen Wang, an analyst at JPMorgan, pointed out, "Inflation remains a consistent topic in corporate earnings outlooks," and added, "Executives are increasingly describing ‘high inflation and high growth,’ noting that the headwinds on supply chains caused by tariffs and raw material inputs could persist through the first half of 2027 due to time lags."

There is also attention on the Consumer Price Index (CPI) set to be released this week. Citi analyst Andrew Hollenhorst predicted, "Inflation will slow for the second consecutive month, and the year-over-year core CPI is expected to come in close to the target (in basis points). This should help counter the prevailing perception that inflation remains well above the target."

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