Wall Street delivered a mixed session on August 5, with the Dow Jones Industrial Average reaching a new all-time high. The blue-chip index climbed 263.24 points, or 0.49%, to close at 54,349.12. In contrast, the tech-heavy Nasdaq Composite dropped 221.55 points, or 0.83%, ending at 26,363.44, while the broader S&P 500 slipped 12.97 points, or 0.17%, to 7,723.55.
Major technology stocks traded in a mixed pattern. The NYSE FANG+ Index was down 0.42%. Among individual names, Nvidia rose 3.43%, Apple gained 0.52%, and Meta edged up 0.14%. On the downside, Microsoft fell 1.09%, Amazon declined 1.72%, Tesla lost 1.77%, and Alphabet dropped 4.05%. The semiconductor sector also saw mostly negative moves. Intel inched up 0.2%, and Broadcom added 0.03%, but Taiwan Semiconductor slipped 0.81%, ASML fell 1.97%, ARM lost 2.13%, Qualcomm dropped 3.16%, and Advanced Micro Devices tumbled 7.04%.
The memory chip segment was under pressure. SanDisk and Western Digital both plunged 5.4% and 5.36%, respectively. SK Hynix fell over 2%, Seagate Technology was down nearly 1%, while Micron Technology managed a slight gain of 0.06%. Energy stocks broadly declined. Exxon Mobil fell 1.53%, Schlumberger dropped 1.77%, Chevron lost 2.11%, Occidental Petroleum declined 2.29%, and ConocoPhillips slipped 2.45%.
Gold mining stocks were a standout, rallying across the board. Agnico Eagle Mines surged 9.89%, Kinross Gold jumped 8.89%, AngloGold Ashanti climbed 8.72%, Barrick Gold rose 7.46%, Newmont added 6.69%, Royal Gold gained 4.4%, and Franco-Nevada advanced 3.52%. Most Chinese stocks listed in the U.S. finished lower, with the Nasdaq Golden Dragon China Index falling 1.09%. Kingsoft Cloud dropped 4.2%, NIO lost 2.31%, Bilibili fell 2.16%, XPeng declined 2.16%, Trip.com Group slipped 1.88%, Tencent fell 1.94%, NetEase dropped 1.91%, JD.com lost 1.3%, and Alibaba edged down 0.1%. New Oriental bucked the trend, rising 1.2%.
In the commodities space, precious metals had a strong session. COMEX gold futures surged 3.74% to $4,308.00 per ounce, and COMEX silver futures climbed 3.34% to $62.26 per ounce. Spot gold was last up 0.49% at $4,267.343, while spot silver added 0.15% to $62.129. International crude oil prices continued to decline. NYMEX WTI crude futures fell 0.91% to $75.08 per barrel, while ICE Brent crude futures edged up 0.29% to $79.59 per barrel.
On the economic data front, payroll processor ADP reported Wednesday that private-sector hiring in the U.S. slowed significantly in July, with the vast majority of new jobs coming from the healthcare sector. The weaker-than-expected employment data eased concerns about further Federal Reserve rate hikes, pushing Treasury yields lower and providing support for precious metal prices. Meanwhile, according to state media, Iran's Deputy Foreign Minister Gharibabadi stated in an interview on August 5 that an agreement between Iran and Oman regarding the passage of commercial ships through the Strait of Hormuz is nearing finalization, which could significantly alter the shipping lane's transit model.
Mark Hackett, an analyst at Nationwide, commented that the stock market's ability to consolidate its recent breakout to new highs hinges on substantial progress in Iran nuclear talks. However, he noted that a stabilization of the situation should allow investors to refocus on a host of fundamental catalysts. The de-leveraging process in global equity markets over the past two months has led to a significant valuation reset. A team of strategists at JPMorgan, led by Nikolaos Panigirtzoglou, stated in a recent report that the most intense phase of de-leveraging in the technology sector has likely passed. The firm believes that investor de-leveraging in the tech and semiconductor sectors, including memory stocks, has been faster than previously anticipated, leaving very limited room for further reductions.
Lori Calvasina, a strategist at RBC Capital Markets, also noted that valuations for the Nasdaq 100, the S&P 500, and even the tech sector are beginning to look "reasonable" again. RBC maintains its year-end S&P 500 target of 8,150 points, suggesting that stronger economic growth and corporate earnings could drive the market up by 11.4%. However, the firm warned that the S&P 500 typically experiences significant volatility during the early stages of a Federal Reserve chair transition, cautioning that the path for stocks will not be smooth. Goldman Sachs also issued a warning, stating that while the de-leveraging process is nearing its end, risks have not been fully cleared, and multiple key events will continue to weigh on the market. In a recent report, Goldman noted that a substantial reduction in risk has not yet been completed, and with seasonal fund outflows and a lack of institutional aggression, the U.S. stock market lacks the "fuel" for an upward move in August.