President Trump Signals Potential Deal to Reopen the Strait of Hormuz as Wall Street Markets React
The administration announced a potential deal to reopen the Strait of Hormuz as early as Wednesday or Thursday, providing a boost to investor confidence in the Middle East. President Trump said the deal could happen quickly, which helped steady oil prices despite a mixed performance on Wall Street. The Dow Jones Industrial Average reached a new all-time high, while the S&P 500 retreated from its record. Tech stocks showed mixed results. SpaceX shares fell 13.6% after the company reported its first quarterly report as a public company, with high AI spending overshadowing an earnings beat. Conversely, Nvidia shares rose over 3% after Elon Musk announced SpaceX would exclusively use Nvidia chips for its AI infrastructure. This news weighed on Advanced Micro Devices, which saw shares drop 7% despite reporting strong results. Market analysts are monitoring the transition from rewarding companies for AI spending to assessing the revenue generated by those investments. Meanwhile, Fed Governor Lisa Cook expressed readiness to act on a rate hike to combat high inflation.