U.S. stock indices closed lower on August 6 (S&P500: -0.18%) amid rising oil prices after reports emerged that an agreement between Iran and Oman to resume operations in the Strait of Hormuz includes a ban on U.S. vessels until compensation is paid. It was also reported that Iran struck some targets in the strait.
The technology sector provided a stabilizing influence from the start of the session. Sandisk and Western Digital shares fell after their earnings reports, but later rebounded from session lows. Disappointing revenue guidance failed to meet investor expectations after the AI-driven rally seen earlier this year, which helped these companies rank among the top gainers in the S&P 500. Meanwhile, the telecommunications sector was among the day’s laggards. Alphabet remained under pressure following yesterday’s reports that several key artificial intelligence specialists had left. The company is also preparing to raise about $25 bn through a bond offering.
U.S. Treasuries fell, snapping a three-day streak of steady gains. The yield on 2-year notes rose 7 bps to 4.25%, while the yield on 10-year notes increased 5 bps to 4.67%.