On expectations that the Strait of Hormuz will open, the three major indexes on Wall Street started higher.
As of 9:57 a.m. on the 5th (local time) on the New York Stock Exchange, the Dow Jones Industrial Average was up 597.80 points, or 1.11%, at 54,683.68. The Standard & Poor's (S&P) 500 was up 44.35 points, or 0.57%, at 7,780.87, and the Nasdaq composite was up 88.25 points, or 0.33%, at 26,673.25.
Earnings from SpaceX and AMD fell short of market expectations and fueled disappointment, but hopes that the Strait of Hormuz will reopen are offsetting it.
U.S. President Donald Trump said in an interview with Fox News the previous day that "we are having very good discussions with Iran," adding, "the Strait of Hormuz will open soon, and if not, Iran will face a very powerful attack."
Regarding media reports that a deal could come as early as the 5th–6th, he said, "that could happen."
Trump said the delegation negotiated all day and talks were proceeding smoothly, adding, "we will know within 48 hours."
Meanwhile, the earnings releases from SpaceX and AMD fell short of investors' expectations.
Second-quarter revenue at SpaceX, led by Elon Musk, jumped 92% year over year to $7.814 billion, topping the market estimate of $6.93 billion.
However, capital expenditure in the artificial intelligence (AI) institutional sector came in at $15.8 billion, far above the market estimate of $13.2 billion.
SpaceX said capital expenditure in the third and fourth quarters would remain at a level similar to the second quarter, but on worries about this AI expenditure, SpaceX shares plunged more than 9%.
AMD posted second-quarter revenue of $11.54 billion and adjusted earnings per share (EPS) of $1.66. That beat market expectations. However, shares fell 4.73% as investors who had expected stronger results and guidance were disappointed.
European stocks were also broadly higher. The Euro Stoxx 50 was up 0.17% at 6,497.70 from the previous close. France's CAC 40 and Germany's DAX rose 0.08% and 0.21%, respectively, while the U.K.'s FTSE 100 added 0.33%.
International oil prices fell. At the same time, front-month West Texas Intermediate (WTI) for September 2026 delivery was down 0.37% at $75.49 a barrel.