Stocks Pause After Surge as Earnings, Hormuz Hopes in Focus – US Market Wrap

Wall Street’s blistering rally took a breather as traders digested recent gains alongside a wave of corporate earnings and optimism around a reopening of the Strait of Hormuz.

After a run that added $3.7 trillion to the S&P 500’s market value, the index edged lower, with most megacaps declining even as Nvidia rose. Despite strong results, SpaceX tumbled 14% as $101 billion in shares became eligible for trading Thursday. US crude slipped to around $75.

Iran said it reached an agreement with Oman on a proposed shipping route through Hormuz, marking a potential step toward reopening the key energy corridor.

On the economic front, US services activity expanded at a steady pace in July, though rising input costs continued to pressure businesses. Hiring slowed, with firms adding fewer jobs than expected, pointing to some cooling in labor demand.

If confirmed in Friday’s jobs report, the trend could allow Federal Reserve officials to maintain focus on still-elevated inflation. Minneapolis Fed President Neel Kashkari told CNBC the central bank should begin gradually raising rates to bring price pressures under control.