Wall Street closes lower, Dow Jones down 0.85% as Middle East tensions loom

Wall Street ended in the red on Thursday, August 6, 2026, as the Dow Jones Industrial Average shed 0.85% in a session marked by low trading volume. Markets adopted a cautious stance, awaiting developments in U.S.-Iran negotiations aimed at resolving the Middle East conflict.

The Dow Jones fell to 53,885 points, breaking a five-session winning streak. The S&P 500 declined 0.18% to 7,709 points, and the tech-heavy Nasdaq saw a slight decrease of 0.06%, closing at 26,348 units. Earlier in the week, U.S. Treasury Secretary Scott Bessent had suggested a potential U.S.-Iran agreement, leading to market caution following several days of gains driven by quarterly earnings season.

Meanwhile, Iran announced an agreement with Oman to open a new route in the Strait of Hormuz. Tehran also indicated it had received messages from the U.S. expressing a willingness to adhere to commitments made in a June memorandum of understanding. Despite these diplomatic signals, oil prices rose, with Texas Intermediate crude closing up 2.75% at $77.29 a barrel, contributing to risk aversion and stock sales.

Sector performance was mixed, with industrial companies experiencing losses (-0.8%). However, energy (1.6%), health (0.15%), and technology (0.1%) sectors closed higher. Among major tech firms, Apple rose 0.45% and Microsoft gained 2.5%. Conversely, SanDisk (-6.8%) and Western Digital (-13%) experienced sharp declines after reporting earnings that fell short of expectations, despite their recent growth fueled by the artificial intelligence boom. Warner Bros Discovery climbed 1.7% on increased streaming revenue and optimism about its merger with Paramount Skydance. SpaceX saw a significant jump of 6.1% as the lock-up period for executives and early shareholders expired.