(Updates with index/price moves, macroeconomic data and company/geopolitical news from the first paragraph.)
US equity indexes traded mixed as declines in heavyweight communication services names restrained the Nasdaq Composite, and amid reports that Iran and Oman have agreed on a proposed route through the Strait of Hormuz, the chokepoint for about a fifth of global oil and natural gas flows.
The Nasdaq Composite fell 0.6% to 26,415.2, and the S&P 500 was little changed at 7,736.9 ahead of Wednesday's close. The Dow Jones Industrial Average rose 0.7% to 54,451.1.
SpaceX (SPCX) reported Q2 capital expenditures of $18.37 billion, up from $2.83 billion a year ago, taking the shine off a narrower-than-expected loss and above-consensus revenue growth. Shares slumped 13%, the worst performer on the Nasdaq.
Alphabet's (GOOG, GOOGL) Google announced new roles for DeepMind Chief Executive Demis Hassabis as part of a reshuffle amid the departure of Chief Scientist Jeff Dean. Hassabis will become chairman of Google DeepMind and assume the role of chief scientist at Alphabet, per Wednesday memos from Alphabet CEO Sundar Pichai and Hassabis. Shares of the search giant dropped 4.2%, among the worst performers on the Dow, the S&P 500, and the Nasdaq.
Shares of Advanced Micro Devices (AMD) dropped 6.9%, one of the steepest decliners on the Nasdaq, after analysts, in a post-earnings conference call late Tuesday, raised questions about the chipmaker's gross margin trajectory. The company reported fiscal Q2 adjusted earnings and revenue above market expectations, and Q3 sales guidance beat consensus.
The pace of data center AI ramp is "very important because, from [a] revenue opportunity perspective, we see [a] large incremental revenue opportunity from data center AI," AMD Chief Financial Officer Jean Hu said on the call, according to a FactSet transcript. "Once it ramps, not only [will] it add tremendous revenue for the company, but also gross profit, even though the gross margin is slightly below corporate average."
Meanwhile, Iran said it has reached a deal with Oman on a proposed shipping route through the Strait of Hormuz, a potential step toward a reopening of the waterway for energy supplies, Bloomberg reported Wednesday.
A joint statement from the two countries is in the final drafting stage, Iran's foreign ministry spokesman Esmail Baghaei was cited as saying Wednesday, Bloomberg reported. Talks between Iran and Oman are "forward-moving," and an agreement would be struck "if certain third parties do not obstruct this process," Baghaei was cited as saying, according to the report.
A proposed deal between Iran and Oman to help end five months of war between Iran and the United States would give Tehran control over ships entering the Gulf through the Strait, a senior Iranian source and two regional officials told Reuters, one of the biggest concessions yet to Iran.
The front-month US West Texas Intermediate crude oil slipped 0.7% to $75.26 a barrel, and global benchmark North Sea Brent rose 0.2% to $79.55 a barrel.