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Update: US Equity Indexes Mixed as Mega-Cap Communication Services, Tech Names Weigh, Strait of Hormuz Safe Route Emerges

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(Updates with index/price moves and macroeconomic data from the first paragraph.)

US equity indexes traded mixed amid declines in heavyweight communication services and technology names, while reports emerged that Iran and Oman have agreed on a proposed route through the Strait of Hormuz in bilateral talks.

The Nasdaq Composite slid 0.8% to 26,363.44, and the S&P 500 fell 0.2% to 7,723.55 at close Wednesday. The Dow Jones Industrial Average rose 0.5% to 54,349.12. Communication services, energy and utilities led decliners. Materials and healthcare topped gainers.

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 more than 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 memos Wednesday 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 7%, 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."

Among stocks with a market capitalization of more than $200 billion, seven out of the bottom 10 names were from either communication services or technology sectors, according to data compiled by Finviz. The three worst performers in this category of mega-caps were SpaceX, Advanced Micro Devices and Alphabet.

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 fell 1% to $75.03 a barrel, and global benchmark North Sea Brent was little changed at $79.34 a barrel.

US Treasury yields slipped, with the 10-year yield down 1.6 basis points to 4.61%.

Gold futures surged 3.6% to $4,308.1, and silver futures advanced 3.4% to $62.28.

In economic news, the Institute for Supply Management's US services index rose to 54.1 in July from 54.0 in June, compared with expectations for 54.5 in a Bloomberg-compiled survey.

The S&P Global US services index was revised upwards to 54.6 in July from the 53.6 flash reading, compared with expectations for no revision in a survey compiled by Bloomberg. The July index is above the 51.2 reading in June and is the highest for nine months.

ADP's monthly measure of private payrolls showed a 44,000 increase in July, below expectations in a Bloomberg-compiled poll for a gain of 65,000. The July increase followed a downwardly revised 95,000 jobs increase in June.

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Update: S&P 500, Dow Scale New Peaks Amid Strong Earnings Flow, Strait of Hormuz Reopening Optimism

(Updates with index/price moves and macroeconomic data from the first paragraph.)US equity indexes jumped as strong earnings helped the S&P 500 and the Dow Jones Industrial Average break records, while sliding crude oil and government bond yields reflected optimism that the Strait of Hormuz could soon reopen.The Nasdaq Composite jumped 2.6% to 26,584.99, the S&P 500 advanced 1.8% to 7,736.52, and the Dow Jones Industrial Average climbed 1.7% to 54,085.88 at the close Tuesday. Both the S&P 500 and the Dow hit their respective all-time highs of 7,758.21 and 54,272.60 earlier in the session, according to data compiled by CNBC.Technology was the standout gainer, followed by materials and industrials. Energy led decliners.Palantir Technologies (PLTR) surged more than 29%, the top gainer on the S&P 500 and the Nasdaq, after Q2 sales and adjusted earnings surpassed analysts' estimates and the company, one of the most prominent names in the artificial intelligence industry, boosted its full-year 2026 revenue outlook.VanEck Semiconductor Exchange-Traded Fund (SMH), with net assets of $77.2 billion, jumped 5.6%.Caterpillar (CAT) raised its full-year revenue outlook on Tuesday after single-quarter sales topped $20 billion for the first time. Shares jumped 5.6%, the Dow's leader.Iranian Foreign Ministry spokesman Esmaeil Baghaei said Iran and Oman are continuing talks aimed at ensuring the safe flow of traffic through the Strait of Hormuz, with discussions focused on designating safe inbound and outbound lanes, Al Jazeera, a Middle Eastern broadcaster, reported. Iran's goal in its talks with Oman "is to set temporary arrangements" - lasting up to three months - where Tehran can control a route through the strait, an official told CNN.Iran is considering allowing European nations to remove mines from the strait, a potential climbdown that could form part of a deal to normalize shipping in the waterway and ease peace negotiations with the US, Bloomberg reported. US Treasury Secretary Bessent said a deal to open the Strait could come as early as "today or tomorrow," allowing "freedom of movement" for commercial vessels, the news report said.Front-month US West Texas Intermediate crude oil sank 6% to $75.52 a barrel, and global benchmark North Sea Brent slumped 5.6% to $79.07 a barrel.US Treasury yields dropped, with the 10-year down 6.9 basis points to 4.62%. The two-year yield slid 6.2 basis points to 4.19%.Gold futures rose 1.1% to $4,134.1, and silver futures climbed 3.2% to $59.73.US job openings fell to 7.359 million in June, per the Bureau of Labor Statistics, below the 7.454 million openings expected in a Bloomberg-compiled poll and down from the 7.537 million openings reported in May. The June print represents 4.4% of total employment, lower than 4.5% in May but up from 4.3% a year ago.New orders for US factory goods slipped 0.3% in June, versus a 0.2% gain expected in a Bloomberg-compiled survey and a revised 1.1% drop in May. Excluding a 0.1% decline in transportation orders, new orders would have been down 0.4% after a 2% gain in May, compared with expectations for a 0.4% increase.Redbook US same-store sales jumped 8.7% from a year ago in the week ended Aug. 1, following an 8.3% advance in the previous week.

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Update: Technology Helps Push US Equity Indexes Higher Amid Earnings, Iran Deal Optimism

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Exchange-Traded Funds Rise as US Equities Advance After Midday

Broad Market IndicatorsBroad-market exchange-traded funds IWM and IVV were higher. Actively traded Invesco QQQ Trust (QQQ) added 3%.US equity indexes rose as earnings helped boost technology while a slide in crude oil and government bond yields reflected confidence that Iran is nearing a deal that would reopen the Strait of Hormuz.EnergyIShares US Energy ETF (IYE) and the State Street Energy Select Sector SPDR (XLE) each lost 0.2%.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) gained 4.9%; iShares US Technology ETF (IYW) rose 3.9%, and iShares Expanded Tech Sector ETF (IGM) added 4.1%.The State Street SPDR S&P Semiconductor (XSD) was up 6.2%, and iShares Semiconductor (SOXX) jumped 6.8%.FinancialThe State Street Financial Select Sector SPDR (XLF) rose 1%. Direxion Daily Financial Bull 3X Shares (FAS) advanced 3%, and its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), declined 2.9%.CommoditiesCrude oil declined 5.2%, and the United States Oil Fund (USO) fell 4.9%. Natural gas shed 3.7%, and the United States Natural Gas Fund (UNG) eased 3.5%.Gold on Comex added 1.4%, and the State Street SPDR Gold Shares (GLD) rose 1.2%. Silver gained 3.8%, and iShares Silver Trust (SLV) was up 3.3%.ConsumerThe State Street Consumer Staples Select Sector SPDR (XLP) rose fractionally. The Vanguard Consumer Staples ETF (VDC) slipped less than 0.1%, and iShares Dow Jones US Consumer Goods (IYK) rose 0.1%.The State Street Consumer Discretionary Select Sector SPDR (XLY) rose fractionally. VanEck Retail ETF (RTH) dipped 0.2%, and the State Street SPDR S&P Retail (XRT) gained 1.2%.HealthcareThe State Street Health Care Select Sector SPDR (XLV) declined 0.1%, iShares US Healthcare (IYH) fell fractionally, and Vanguard Health Care ETF (VHT) added 0.1%. IShares Biotechnology ETF (IBB) was up 1.6%.IndustrialThe State Street Industrial Select Sector SPDR (XLI) rose 1.6%. Vanguard Industrials Index Fund (VIS) and iShares US Industrials (IYJ) were also higher.CryptocurrencyIn midday activity, bitcoin (BTC-USD) added 0.1%. Among cryptocurrency ETFs, ProShares Bitcoin ETF (BITO) rose 0.4%, ProShares Ether ETF (EETH) was down 0.2%, and ProShares Bitcoin & Ether Market Cap Weight ETF (BETH) was 1.4% higher.

Dow Jones^EEM^EXI^FAS^FAZ^GLD^IBB^IGM^IGV^IPK^IVV^IWMNasdaq Composite^IYE^IYH^IYJ^IYK^IYW^PMR^QQQ^RTH^SOXXS&P 500^SPY^UNG^USO^VDC^VHT^VIS^XLE^XLF^XLI^XLK^XLP^XLV^XRT^XSD$BETH$BITO$EETH