U.S. stock indices held in negative territory in the second half of the Aug. 6 session (S&P500: -0,20%) after the release of a new batch of earnings reports, while markets await the completion of a deal with Iran to resume shipping through the Strait of Hormuz.
The pullback follows a strong rally and may be partly related to profit-taking. Meanwhile, reports that the Houthis announced an attack on a Saudi-flagged tanker in the Red Sea led to a renewed rise in oil prices, making energy one of only two S&P 500 sectors trading in the green.
Earlier, trading dynamics were largely shaped by a mixed reaction to earnings reports rather than any specific catalyst. In focus was the decline in Sandisk and Western Digital after the companies’ results failed to support the optimism that had fueled a rally in memory-chip makers.
Software makers remain a weak spot in the technology sector. AppLovin and Datadog are seeing a sell-off following their earnings reports, although strength in Microsoft shares is helping offset some of this pressure.