Major United States benchmark indices closed mixed on Wednesday (Thursday AEST), with the Dow Jones Industrial Average finishing at a record high as optimism over progress towards a peace deal with Iran outweighed weakness in technology stocks following a fresh round of corporate earnings.
The Dow Jones Industrial Average gained 263.2 points, or 0.5%, to 54,349.1. The S&P 500 slipped 13.0 points, or 0.2%, to 7,723.5, while the Nasdaq Composite fell 221.6 points, or 0.8%, to 26,363.4.
Sentiment was supported after a senior Iranian source and two regional officials told Reuters that a proposed agreement between Iran and Oman would give Tehran control over vessels entering the Gulf through the Strait of Hormuz, marking one of the most significant concessions yet offered to Iran.
SpaceX shares tumbled 13.6% after the Elon Musk-led company reported its first earnings since listing. Revenue nearly doubled and operating losses narrowed, driven by strong growth in its Starlink satellite communications and artificial intelligence businesses.
However, investors questioned how long the company could sustain heavy spending on AI-related investments, including data centres.
Advanced Micro Devices also came under pressure, falling 7% despite forecasting quarterly revenue above market expectations on robust AI demand. Investors sought stronger evidence that elevated AI investment would translate into faster earnings growth.
Elsewhere, Eli Lilly climbed 4.9% after raising its full-year revenue forecast, while Disney advanced 3.6% after reporting third-quarter profit that exceeded expectations, providing further support for the Dow.
On the economic front, U.S. private payroll growth slowed in July, according to the ADP National Employment Report, with private employers adding 44,000 jobs in July, down from 95,000 in the previous month and below expectations of 70,000.
Separately, the Institute for Supply Management said its services purchasing managers' index (PMI) edged up to 54.1 in July from 54.0 in June. The reading came in below economists' expectations of 54.5 but remained above the 50-point threshold that indicates expansion.
On the bond markets, the 10-year Treasury yield was little changed at 4.615%, while the two-year Treasury yield eased 0.2% to 4.185%.
