Dow falls on Middle East uncertainty and higher oil, Nasdaq also slips

2026-08-07

The Dow Jones Industrial Average fell for the first time in six sessions, closing down $464.02 at 53,885.10. Persistent uncertainty over the Middle East weighed on sentiment, while higher oil prices also dragged on the market after a gain of more than 2,700 points over the previous five days.

Middle East concerns and position adjustment

In talks over reopening the Strait of Hormuz, a proposal by Iran and Oman was said to aim for Iranian control of the waterway, and reports said a draft drawn up by an Iranian lawmaker included language that would not allow vessels from the United States and Israel to pass through. There were also views that the United States had rejected the proposal.

In the market, Jose Torres of Interactive Brokers said, 'We are waiting for an agreement to be announced, but there is absolutely no visibility.' Reports also said the Iran-backed Houthi movement in Yemen attacked Saudi Arabian forces. In the U.S. crude futures market, front-month September WTI (West Texas Intermediate) at one point rose more than 4%.

Higher oil pushes up rates

Profit-taking hit the Dow, particularly shares that had risen sharply in a short period, while higher U.S. long-term yields on the back of stronger oil prices made equities look relatively expensive. Salesforce stood out on the downside, after a change in executive appointments announced on the 5th was seen as adding uncertainty around management. Steep falls in software stocks including HubSpot, which reported April-June earnings by the 6th, also weighed on the index.

Honeywell Technologies, Boeing and Goldman Sachs also fell. Alphabet, which was reported to be considering issuing corporate bonds, was sold as well, while Walt Disney, Microsoft and Chevron advanced. The Dow opened higher and at one point topped its previous all-time high of 54,349.

Nasdaq slips slightly for a second day

The Nasdaq Composite, which has a high weighting of technology shares, fell for a second straight session and closed down 15.087 points at 26,348.352. Sandisk fell after its evening of the 5th guidance for July-September sales missed market forecasts, while Western Digital also posted a sharp drop after reporting earnings that same evening.

By contrast, some semiconductor stocks including Advanced Micro Devices (AMD) and Broadcom were bought, and SpaceX rebounded.

Enjoyed this article? Share it with your network!