3 weeks ago
Dow Jones Falls Over 450 Points, Snapping Five-Day Winning Run
The stock market in the United States had a rough day on Thursday.
A group of big and famous companies called the Dow Jones lost more than 450 points.
That ended a lucky stretch where it had gone up for five days in a row.
One reason investors were worried is that oil prices went up a lot.
Oil became more expensive after news stories said Iran and Oman were thinking about a plan for ships in a very important waterway called the Strait of Hormuz.
The plan would not let ships from the US and Israel travel there, but no one officially confirmed the story.
When oil costs more, some other money things, like bond yields, also go up.
A company called Salesforce lost money because it announced it was changing its leaders.
Meanwhile, a rocket company called SpaceX made money because a rule that stopped people from selling its shares ended.
Everyone is now waiting for a big report about jobs to see how the work world is doing.
The Dow Jones fell over 450 points on Thursday, August 6, snapping a five-day winning run that had added over 2,500 points.
The S&P 500 and Nasdaq ended below the flat line, extending their losses for the second day in a row.
Salesforce, a key Dow constituent, dropped over 3% after announcing a leadership change.
Brent crude surged over 4.5% on unconfirmed media reports of a draft Iran-Oman proposal to restore navigation through the Strait of Hormuz, which would ban US and Israeli ships; no official draft was shared.
SpaceX shares rose 6% on the day its shareholder lock-in ended, freeing up over 911 million shares worth over $100 billion.
- Who
- Investors on Wall Street, including Dow Jones constituents such as Salesforce, plus Iran, Oman, the Houthis, and SpaceX shareholders.
- What
- The Dow Jones fell over 450 points, snapping a five-day winning run, as oil prices and bond yields rebounded and Salesforce dropped over 3%.
- Where
- Wall Street and US stock markets, with related developments around the Strait of Hormuz region.
- When
- Thursday, August 6.
- Why
- Pressure came from a rebound in oil prices and bond yields, driven partly by unconfirmed reports of an Iran-Oman proposal regarding the Strait of Hormuz, and from a leadership change at Salesforce.
Media Reports
Iran and Oman (Unconfirmed)
Iran-Oman Strait of Hormuz proposal
Media Reports
Media reports circulated a draft proposal between Iran and Oman to restore maritime navigation through the Strait of Hormuz, including a ban on US and Israeli ships.
Iran and Oman (Unconfirmed)
No official draft has been shared by either Iran or Oman, and the reports have not been independently confirmed.
Key facts
- Dow Jones change
- Fell over 450 points
- Prior winning streak
- Five days, adding over 2,500 points
- Salesforce change
- Down over 3% on announced leadership change
- Brent crude change
- Surged over 4.5%, closing above $83 per barrel
- 10-year bond yield
- 4.67%
- US Dollar index
- 100
- SpaceX shares
- Up 6%; over 911 million shares worth over $100 billion unlocked
- Non-farm payrolls consensus
- 83,000 jobs; unemployment steady at 4.2%
Quotes
Houthis
Yemen rebel group
“"killed and injured hundreds of them."”
CNBC TV 18





