Closing Bell: Markets Fall on Tech Earnings, Oil Spike with Iran’s Hormuz Proposals

U.S. stocks ended modestly lower on Thursday as oil prices spiked on reports that Iran wants to restrict Strait of Hormuz traffic, and a batch of tech earnings disappointed.

Indexes stepped back from all-time highs. The S&P 500 (SPX) was down 0.18% to 7,709.96, the tech-heavy Nasdaq-100 (NDX) fell 0.39% to 29,373.33 and the Dow Jones Industrial Average ($DJI) retreated by 0.85% to 53,885.10. The Russell 2000 (RUT) fell 0.58% to 3,001.55.

The PHLX Semiconductor Sector Index (SOX) rose 0.33% to 12,048.69. The futures price for U.S. crude oil (/CL) was rising through the close, and was up 4% to more than $78 per barrel.

Energy led S&P 500 sectors with oil's rebound, while Industrials, Real Estate, Materials, Communication Services and Utilities were under pressure.

Three things to watch from Thursday’s market:

Oil Spikes on Iran's Strait of Hormuz Draft Plan

Oil prices surged after Iranian state news published a draft plan with restrictive conditions for ship traffic through the Strait of Hormuz, including proposed bans on U.S. and Israeli vessels, according to reports. No deal has been announced, though Iran and Oman are reportedly working on an agreement to define transit routes. ConocoPhillips (COP) rose 1.5% after reporting results that surpassed analyst expectations. It also announced CEO succession plans. For more on domestic power and energy infrastructure demand, listen to the AMSC CEO on Expanding Across Mining, Energy and Data Center Infrastructure

Software Pressured, Cybersecurity steps into Earnings Spotlight

Lofty expectations left traders underwhelmed when Datadog (DDOG) reported second-quarter earnings and revenue that surpassed analyst estimates, and raised its full-year outlook. The stock plunged 19% Thursday, reflecting profit-taking after a rise of 108% through Wednesday’s close. Cloudflare (NET) reported earnings and revenue after the bell that beat expectations and its shares soared more than 15% higher. Akamai (AKAM) also reported after-hours results and guidance that traders cheered; the stock rose more than 12% late Thursday. See Cybersecurity Shines in Troubled Software Sector: Cloudflare Earnings

Tech Guidance Weighs, Chip Names in Focus

Tech earnings weighed on the broader market. Sandisk (SNDK) dropped 6.8% on soft guidance and Western Digital (WDC) fell 13% after a disappointing first-quarter forecast, while Celsius Holdings (CELH) plunged about 18% on a revenue and EPS miss.

Meanwhile, Space Exploration Technologies Corp. (SPCX) announced a Terafab advanced-chip plant in Grimes County, Texas. Nvidia (NVDA) said it is evaluating Rubin Ultra GPU designs with less high-bandwidth memory to mitigate supply constraints. SpaceX shares were up more than 6% Thursday, while Nvidia shares were down fractionally. See SPCX Earnings Reaction: AI Compute 'Colossus' Piece | Next Gen Investing

Rick Ducat, Angrej Singh, and Tom White contributed to this article

Economic Events (ET), August 7, 2026

08:30 AM: Employment Report

03:00 PM: Consumer Credit (Jun)

01:00 PM: Baker Hughes Rig Count

Earnings Snapshot, August 7, 2026

Premarket: Vistra (VST), Under Armour (UAA), Oklo (OKLO), Wendy's (WEN), Plains All American Pipeline (PAA), Restaurant Brands International (QSR), Enbridge (ENB), Fluor (FLR), Essent Group (ESNT), Construction Partners (ROAD), ANI Pharmaceuticals (ANIP), Canopy Growth (CGC)

Postmarket: Take-Two Interactive (TTWO), Park Hotels & Resorts (PK)

This material is intended for informational purposes only and should not be considered a personalized recommendation or investment advice. Investors should review investment strategies for their own particular situations before making any decisions.

Schwab Network is brought to you by Charles Schwab Media Productions Company (“CSMPC”). CSMPC is a subsidiary of The Charles Schwab Corporation and is not a financial advisor, registered investment advisor, broker-dealer, or futures commission merchant.

Charles Schwab Media Productions Company and all third parties mentioned are separate and unaffiliated, and are not responsible for one another's policies, services or opinions.

Data contained herein is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed. All events and times listed are subject to change without notice.