Asian Stocks Slip as AI Rally Fades, Oil Holds Steady on Iran Peace Deal Hopes 
Gulf Shipping Traffic Steady as U.S.-Iran Talks Remain Uncertain 
Asian Currencies Mixed as Yen Retreats, Traders Eye U.S.-Iran Talks and Fed Data 
India Plans Tax Reforms to Boost Foreign Investment and Manufacturing 
Brazil Cuts Selic Rate to 14% as Inflation Eases but Risks Persist 
Japan Economy Minister Downplays Inflation Risks Despite BOJ Warning 
KOSPI Drops Nearly 5% as Samsung, SK Hynix Lead AI Stock Selloff 
UK Services PMI Returns to Growth in July as New Orders and Confidence Rebound 
U.S., Iran, Oman Near Interim Deal to Reopen Strait of Hormuz Amid Ceasefire Efforts 
Asian Stocks Rally as AI Optimism Lifts Tech Shares Across Regional Markets 
RBI Holds Repo Rate at 5.25% as Inflation Risks and Global Uncertainty Persist 
Oil Prices Extend Three-Day Decline as Hopes Rise for U.S.-Iran Strait of Hormuz Deal 
German Bund Yields Hit Three-Week Low as Energy Prices Ease and ECB Outlook Softens 
Gold Price Holds Steady as Fed Rate Outlook and Jobs Data Keep Markets on Edge 
US Stock Futures Edge Higher as Tech Rally Continues Despite SpaceX and AMD Earnings Pressure 
U.S. stocks finished mixed on Wednesday, ending a four-session winning streak as investors paused after a strong start to August. The Dow Jones Industrial Average climbed 0.5% to a record close of 54,349, while the S&P 500 slipped 0.2% to 7,719.19 and the Nasdaq Composite fell 0.8% to 26,363.44 after giving up earlier gains.
Investor sentiment remained supported by a solid corporate earnings season, sector rotation beyond technology, and optimism over potential diplomatic progress between the United States and Iran. However, disappointing market reactions to earnings from SpaceX and Advanced Micro Devices (AMD) weighed on technology stocks.
SpaceX shares tumbled 13.6% despite reporting stronger-than-expected revenue and a narrower quarterly loss, as investors focused on heavy AI infrastructure spending that pressured free cash flow. AMD dropped 7% after issuing upbeat results and guidance that still failed to meet lofty investor expectations. The stock also faced additional pressure after Elon Musk revealed SpaceX would rely exclusively on Nvidia chips for future projects. Nvidia shares rose 3.4%.
Meanwhile, strong earnings from Microsoft and Amazon helped revive confidence in the artificial intelligence sector after a difficult July. The Philadelphia Semiconductor Index has rebounded nearly 15% since Microsoft's earnings, reflecting renewed optimism in AI-related stocks.
Outside technology, Amgen gained 4.6% after reporting stronger product sales driven by demand for key medicines, while Walt Disney advanced 3.6% on better-than-expected profit and an increased share buyback plan.
Economic data painted a mixed picture. ADP reported private-sector employment increased by just 44,000 jobs in July, below expectations and reinforcing signs of a cooling labor market ahead of Friday's closely watched U.S. nonfarm payrolls report. The ISM Services PMI edged up to 54.1, signaling continued expansion, although elevated input prices highlighted ongoing inflation concerns.
Markets also drew support from comments suggesting the U.S. and Iran were nearing an agreement to reopen the Strait of Hormuz. President Donald Trump indicated progress in negotiations, while Iranian officials confirmed talks were advancing. Hopes for a deal helped push oil prices lower despite renewed attacks on Saudi-linked vessels by Iran-backed Houthi forces, easing concerns over global energy supply disruptions.
