Stock Markets August 6, 2026 05:45 AM

Markets Hold Steady as Middle East Deal Looms; Chip Stocks Pull Back After Strong Runs

S&P 500 and Dow futures stable while data-storage and memory names retreat; oil, Fed signals and jobs data keep traders cautious

By Marcus Reed
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U.S. equity futures were mostly steady early Thursday after a record-setting rally earlier in the week, as investors awaited clarity on a potential Middle East agreement and key economic reports. Nasdaq futures weakened after data-storage names Western Digital and SanDisk slid sharply in premarket trading despite revenue forecasts above consensus. Energy markets and incoming Fed commentary added to a cautious tone ahead of weekly jobless claims and July payrolls.

Markets Hold Steady as Middle East Deal Looms; Chip Stocks Pull Back After Strong Runs
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Key Points

  • S&P 500 and Dow futures were largely steady after a record-setting rally earlier in the week, while Nasdaq futures declined.
  • Western Digital fell about 15% and SanDisk dropped about 9% in premarket trading despite forecasting quarterly revenue above expectations on strong AI-driven demand; other chip stocks also retreated.
  • Brent crude traded near $80 a barrel amid focus on a proposed Iran-Oman deal affecting ship movements through the Strait of Hormuz; Fed commentary and upcoming jobs data kept traders cautious.

U.S. equity futures opened the day with little net movement on Thursday, reflecting a market waiting for further details on a possible Middle East accord and key economic releases. The S&P 500 and Dow futures were broadly steady following a record-breaking rally earlier in the week, while the Nasdaq showed signs of cooling as a handful of high-flying chip-related names pared gains.

In premarket activity, data-storage company Western Digital declined roughly 15% and memory chip maker SanDisk fell about 9%, trimming from large year-to-date advances that had seen the stocks jump near 200% and 400%, respectively. Both companies said they expect quarterly revenue above analysts' forecasts, citing robust demand tied to artificial intelligence workloads.

Other semiconductor and memory-related shares also retreated. Micron's shares shed 3.5%, and Advanced Micro Devices, Marvell Technology and Intel each lost more than 1% on the session. The broader group of AI-linked technology stocks displayed signs of easing after an extended rally that helped lift major indexes earlier in the week.

Among the megacap names, Meta and Amazon were slightly higher, while Alphabet climbed roughly 0.7% a day after a 4% drop following an announcement about an internal leadership overhaul within its AI division. Apple advanced about 0.8% on the session.

SpaceX was up approximately 1.5% ahead of the company's first post-IPO share lockup expiry. Observers noted that strong results from technology leaders across this earnings season have bolstered investor confidence that investments in AI are beginning to generate revenue, a dynamic that helped the S&P 500 and the Dow reclaim record highs earlier in the week. The Nasdaq remains about 3% shy of its all-time high.

Market moves in the futures market at 05:07 a.m. ET included Dow E-minis up 159 points, or 0.29%, S&P 500 E-minis up 8.25 points, or 0.11%, and Nasdaq 100 E-minis down 155.25 points, or 0.52%. Snapshot intraday indicators showed the Nasdaq 100 trading down 0.83%, the S&P 500 about 0.17% lower and the Dow higher by 0.49%. Individual tickers and index snapshots indicated mixed intra-session momentum across technology and large-cap sectors.

On the energy front, Brent crude traded in a narrow band near $80 a barrel as market participants monitored reports about potential progress toward a deal involving Iran. A proposed arrangement between Iran and Oman would, according to sources, give Tehran control over vessels entering the Gulf through the Strait of Hormuz. Developments on that front are being watched closely because energy costs are a focus for the Federal Reserve.

Federal Reserve commentary and incoming labor-market data added to the list of near-term drivers. St. Louis Fed President Alberto Musalem was scheduled to speak on monetary policy later in the day. With Chairman Kevin Warsh reportedly offering limited forward guidance, traders said they were finding it difficult to pin down the Fed's next move. The CME FedWatch Tool indicated that probabilities for no change versus a rate hike in September had moved closer to even, compared with last week when markets were pricing a 37% chance of unchanged policy against a 63% chance of a hike.

Investors were also awaiting official labor-market updates. A report due at 8:30 a.m. ET was expected to show initial jobless claims for the week ended Aug. 1 at about 202,000, up from 197,000 the prior week. Attention will shift to the official non-farm payrolls report for July, due on Friday.

Corporate earnings and scheduled reports were on the calendar as well, with companies such as ConocoPhillips, Molson Coors and Keurig Dr Pepper set to release results. Separately, a commercial investment screening tool and promotional offering mentioned that a machine-driven stock evaluator had previously flagged companies such as Siemens Energy and SanDisk ahead of broader market recognition, and that readers could examine Intel in that context.


Key data and market snapshots

  • Dow E-minis: up 159 points, or 0.29% (05:07 a.m. ET)
  • S&P 500 E-minis: up 8.25 points, or 0.11%
  • Nasdaq 100 E-minis: down 155.25 points, or 0.52%
  • Brent crude: trading near $80 a barrel
  • Initial jobless claims (week ended Aug. 1): expected 202,000, up from 197,000

Market implications

Financial markets entered Thursday balancing geopolitical developments in the Middle East, fresh corporate revenue forecasts tied to AI demand and a Fed policy outlook that remains difficult for traders to read. The combination of these factors is producing measured price action in large caps and providing greater volatility among chip and storage stocks that had led the year's gains.

Risks

  • Uncertainty around a proposed Iran-Oman deal and control of ship movements through the Strait of Hormuz - could affect energy markets and energy-sensitive sectors.
  • Unclear Fed guidance with mixed odds for a September rate move - creates policy risk for interest-rate sensitive sectors and overall equity valuations.
  • Volatility in chip and data-storage stocks following significant year-to-date gains - raises sector-specific risk for technology and semiconductor suppliers.

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