3 weeks ago
Wall Street eases as Hormuz deal hopes fade; Intel drops
On Monday, the stock market in the United States went down a little bit.
That happened because people hoped a busy shipping route called the Strait of Hormuz would open again soon, but that hope started to fade.
Ships use that route to move oil, and when there is trouble there, oil can cost more.
The price of oil jumped by about 5%, so one barrel cost around $82.
A computer-chip company called Intel also had a rough day, with its stock dropping about 3%.
Intel said it plans to raise $15 billion by selling new shares of the company.
President Donald Trump asked Iran to pay back money for people he says Iran hurt in wars, attacks, and protests.
High oil prices make people worried because they can make all kinds of things cost more.
More companies, including Applied Materials and Cisco, will share how much money they made later this week.
The stock market had been at record highs lately because many companies reported very strong profits.
U.S. stocks edged lower Monday as hopes faded for an imminent deal to reopen the Strait of Hormuz and Intel shares dropped.
Intel fell about 3% after announcing plans to raise $15 billion through a share sale.
U.S. crude oil jumped about 5% to settle at $82.13 a barrel.
President Trump demanded that Iran pay compensation for people he said it killed in wars, attacks and protests.
Traders now price a 44% chance of a September Federal Reserve rate hike after July payrolls unexpectedly fell by 23,000 jobs.
- Who
- U.S. stock investors, President Donald Trump, and chipmaker Intel.
- What
- U.S. stocks eased as hopes for reopening the Strait of Hormuz faded and Intel dropped after announcing a $15 billion share sale; oil prices jumped about 5%.
- Where
- Wall Street, at the New York Stock Exchange and Nasdaq, with tensions tied to the Strait of Hormuz.
- When
- Monday, August 10, during afternoon trading.
- Why
- Diminished hopes for a Hormuz deal, Intel's planned $15 billion share sale, and elevated oil prices weighed on risk sentiment.
Key facts
- Oil Price
- $82.13 per barrel, up about 5%
- Intel Share Sale
- $15 billion
- Intel Stock Change
- Down about 3%
- Dow Jones Industrial Average
- 53,883.83, down 0.28%
- S&P 500
- 7,750.66, down 0.09%
- Nasdaq Composite
- 26,587.14, down 0.39%
- July U.S. Jobs Change
- Unexpected loss of 23,000 jobs
- Fed Rate Hike Odds for September
- 44%, per CME FedWatch tool
Quotes
Tom Hainlin
Investment strategist at U.S. Bank Wealth Management, Minneapolis
““It’s record margins and record earnings. That's just been the story of this market, and yet the overlay of the Iran conflict just pulls risk sentiment on and then pulls it off.””
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