{"id":66007,"date":"2026-08-05T10:08:15","date_gmt":"2026-08-05T14:08:15","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/markets-rise-on-strong-services-data-and-potential-strait-of-hormuz-breakthrough\/66007\/"},"modified":"2026-08-05T10:08:15","modified_gmt":"2026-08-05T14:08:15","slug":"markets-rise-on-strong-services-data-and-potential-strait-of-hormuz-breakthrough","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/markets-rise-on-strong-services-data-and-potential-strait-of-hormuz-breakthrough\/66007\/","title":{"rendered":"Markets Rise on Strong Services Data and Potential Strait of Hormuz Breakthrough"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>U.S. Services sector activity remains resilient<\/strong> as the <strong>ISM Services Index hit 54.1 in July<\/strong>, while the <strong>S&amp;P Global Services PMI climbed to 54.6<\/strong>, both signaling steady economic expansion.<\/li>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">Oil prices<\/a> retreated below $80\/bbl<\/strong> following reports that <strong>Iran and Oman have finalized a draft agreement<\/strong> to reopen the <strong>Strait of Hormuz<\/strong> with a 60-day toll-free transit period.<\/li>\n<li><strong>Wall Street opened higher<\/strong> with the <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a> (<a href=\"\/stock\/SPY\">SPY<\/a>) rising 0.63%<\/strong> and the <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/dowjones\/today\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> (<a href=\"\/stock\/DIA\">DIA<\/a>) gaining over 360 points<\/strong>, supported by positive economic data and cooling energy costs.<\/li>\n<li><strong>Semiconductor tensions persist<\/strong> as reports surface that Samsung and SK Hynix are testing <strong>Chinese chipmaking tools<\/strong> to hedge against U.S. regulatory risks, impacting sentiment for <a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>).<\/li>\n<li><strong>Eli Lilly (<a href=\"\/stock\/LLY\">LLY<\/a>)<\/strong> reported surging demand for its <strong>GLP-1 weight-loss drugs<\/strong>, highlighting continued dominance in the high-growth pharmaceutical sector.<\/li>\n<\/ul>\n<h2>U.S. Services Sector Shows Resilience Amid Inflationary Pressure<\/h2>\n<p>The U.S. economy received a boost Wednesday morning as two major reports confirmed continued growth in the services sector. The <strong>ISM Services Index for July came in at 54.1<\/strong>, slightly missing estimates of 54.5 but remaining well into expansionary territory. Notably, the <strong>Prices Paid component surged to 70.3<\/strong>, significantly higher than the 65.0 estimate, suggesting that inflationary pressures in the service industry remain sticky.<\/p>\n<p>Simultaneously, the <strong>S&amp;P Global Services PMI reached 54.6<\/strong>, outperforming both the previous reading and expectations of 53.6. This data helped propel the <strong>Nasdaq (<a href=\"\/stock\/QQQ\">QQQ<\/a>) up 0.40%<\/strong> at the open, as investors interpreted the figures as a sign of a &quot;soft landing&quot; where the economy stays strong enough to avoid recession despite high interest rates.<\/p>\n<h2>Geopolitical Breakthrough in the Strait of Hormuz<\/h2>\n<p>Energy markets saw a sharp reversal as <strong>Brent crude fell below $80 per barrel<\/strong> following news of a potential diplomatic breakthrough. Negotiators from <strong>Iran and Oman<\/strong> have reportedly finalized a draft proposal to reopen the <strong>Strait of Hormuz<\/strong>, a critical maritime chokepoint. The plan includes a <strong>60-day toll-free transit period<\/strong> for ships and could pave the way for renewed nuclear negotiations between the U.S. and Tehran.<\/p>\n<p>European energy markets also reacted to the easing tensions and improved supply outlooks. <strong>European Gas prices extended their drop<\/strong>, falling as much as <strong>5.6% to \u20ac52.78\/MWh<\/strong>. However, the conflict in the Middle East continues to weigh on other sectors, as <strong>Global Payments (<a href=\"\/stock\/GPN\">GPN<\/a>)<\/strong> cut its full-year forecast, citing a hit to travel spending caused by regional instability.<\/p>\n<h2>Corporate Earnings and Market Moves<\/h2>\n<p>In the healthcare sector, <strong>Charles River Laboratories (<a href=\"\/stock\/CRL\">CRL<\/a>)<\/strong> lifted its profit forecast and signaled an aggressive stance toward future M&amp;A activity. Meanwhile, <strong>Eli Lilly (<a href=\"\/stock\/LLY\">LLY<\/a>)<\/strong> continues to see &quot;surging demand&quot; for its GLP-1 weight-loss treatments, further solidifying its position as a market leader. In contrast, <strong>SpaceX<\/strong> saw its private shares sink 12%, reportedly erasing <strong>$205 billion in market value<\/strong>.<\/p>\n<p>Tech investors are closely watching <strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong> following reports that South Korean giants <strong>Samsung and SK Hynix<\/strong> are beginning to test Chinese-made chipmaking tools. This move is seen as a strategic hedge against tightening U.S. export restrictions on high-end semiconductor technology. In the retail space, <strong>Ethan Allen (<a href=\"\/stock\/ETD\">ETD<\/a>)<\/strong> saw insider buying as its chairman declared the stock &quot;undervalued&quot; at current levels.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways U.S. Services sector activity remains resilient as the ISM Services Index hit 54.1 in July, while the S&amp;P [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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