US markets closed mixed on August 5th, with the Dow Jones Industrial Average rising 0.49% to 54,349.12, while the S&P 500 fell 0.17% to 7,723.55, and the Nasdaq Composite dropped 0.83% to 26,363.44. This pullback followed a strong four-day rally that saw the S&P 500 gain $3.7 trillion. Investors paused to assess recent stock gains and monitor the situation in the Middle East, particularly regarding the Strait of Hormuz.
Signs of exhaustion emerged in the market, with a key gauge of chipmakers falling 1.4%, though Nvidia Corp. managed to climb. SpaceX, despite strong results, saw its stock sink 14% as $101 billion worth of stock became available for trading. On the economic front, ADP private-sector employment grew by only 44,000 in July, significantly below expectations and marking the lowest level of the year, raising stagflation fears ahead of Friday’s nonfarm payrolls data. Wages for job changers, however, rose a robust 7% year-over-year.
Optimism regarding the Middle East situation provided some support, with Iran and Oman reportedly reaching an agreement on a proposed route for shipping through the Strait of Hormuz, a critical waterway for energy supplies. This news contributed to a dip in oil prices, with US oil settling around $75 per barrel. Gold, driven by safe-haven demand, surged over 4.11%, returning above the $4,200 level, and silver rose 4.12%. The dollar index edged down 0.2%.
