Dow futures rise over 200 points as Trump says Hormuz deal could be near; SpaceX, AMD slide
US stock index futures edged higher on Wednesday, August 5, following a record-setting session on Wall Street, as investors assessed fresh corporate earnings while optimism over a potential deal to reopen the Strait of Hormuz supported sentiment.
Dow Jones Industrial Average futures rose over 200 points, or 0.4%, while S&P 500 futures gained 0.4%. Nasdaq-100 futures advanced 0.2%, with technology shares under pressure after disappointing earnings reactions.
SpaceX shares tumbled about 10% in premarket trading after the company reported a sharp rise in second-quarter capital expenditure, largely driven by artificial intelligence investments, overshadowing earnings beat in its first quarterly report since listing. Chipmaker AMD also fell around 7% despite reporting adjusted earnings that narrowly topped Wall Street estimates and issuing a strong outlook.
The moves followed a strong rally on Tuesday, when the S&P 500 surged 1.8% to close above the 7,700 mark for the first time, while the Dow climbed more than 900 points to a record high. Markets were buoyed by solid corporate earnings and optimism after US President Donald Trump said a deal to reopen the Strait of Hormuz could be reached as early as Wednesday, echoing comments from Treasury Secretary Scott Bessent that Washington and Tehran were nearing an agreement.
Qatar said a proposal had been drafted between the United States and Iran to reopen the strategic waterway, while reports suggested Tehran was considering allowing European countries to remove mines from the strait, raising hopes that shipping through one of the world’s busiest oil transit routes could soon normalise.
Oil prices recovered after two sessions of losses. Brent crude futures rose about 1% to around $80 a barrel, while US West Texas Intermediate crude gained roughly 0.3% to trade near $76 per barrel.
Investors also awaited another busy day of earnings, with results due from Eli Lilly, Novo Nordisk, Western Digital, Sandisk, Walt Disney, Shopify and Uber Technologies later in the day.Explained: Why oil markets aren’t buying Trump’s optimism over a Strait of Hormuz deal