S&P 500, Dow Hit Record Highs Again as Earnings, Hormuz Reopening Hopes Lift Stocks

Strong earnings and hopes for the Strait of Hormuz reopening buoy stocks

Nvidia jumps more than 4%, while AMD falls

U.S. stocks rose on Aug. 5, with the S&P 500 extending its rally to a fifth straight session and opening at a record high as strong corporate earnings combined with growing expectations that the Strait of Hormuz will reopen soon.

As of 10:15 a.m. in New York, the S&P 500 was up 0.57% above 7,782, marking a second straight record high. The Dow Jones Industrial Average gained 1.1%, also hitting an all-time high for a second consecutive day. The tech-heavy Nasdaq Composite rose 0.4%.

Over the past week, the S&P 500 has climbed more than 6%, while the Dow and Nasdaq have advanced more than 5% and 9%, respectively.

Disney helped lead the Dow higher, rising more than 2% after reporting better-than-expected fiscal third-quarter results. Eli Lilly jumped 7% after lifting its full-year sales and profit outlook on surging obesity-drug sales.

Oil prices extended their decline. West Texas Intermediate crude for September delivery fell more than 1% to $74.8 a barrel, while Brent crude for October delivery, the global benchmark, slipped 0.8% to about $78 a barrel.

With oil prices under pressure, the yield on the 10-year Treasury was little changed at 4.621%, while the two-year yield rose 1 basis point to 4.206%.

The ICE Dollar Index fell 0.1% to 99.746. Spot gold climbed 2.9% to $4,194.38 an ounce.

Advanced Micro Devices fell 5% even after the chipmaker, which reported results after the previous session's close, posted adjusted earnings per share above analysts' estimates.

Chip stocks were mixed. Nvidia rose more than 4% and Micron Technology gained 1% after SpaceX's earnings spotlighted the Vera Rubin chip. Intel and SK hynix were little changed.

SpaceX shares slumped 11% after the company said capital spending on AI and other areas had increased sixfold. The stock was also pressured ahead of a lockup expiration beginning Aug. 6.

SanDisk and Western Digital are scheduled to report earnings after the close.

Bloomberg reported that about 90% of U.S. companies that have released earnings so far have beaten expectations.

"Earnings are still acting as the compass, the economy continues to show resilience, market participation has broadened, and stretched valuations have largely been worked off," Keith Lerner of Truist Advisory Services said.

Kim Jung-a, guest reporter, Hankyung.com, kja@hankyung.com