US Stocks Close: SpaceX Plunges Over 13% After Earnings, Dow Hits Record High, S&P and Nasdaq End Four-Day Rally

Boosted by robust corporate earnings and a strong rally in NVIDIA's shares, the Dow Jones Industrial Average rose 263.24 points on Wednesday (5th), marking its fifth consecutive day of gains and closing at a new all-time high. However, semiconductor stocks diverged, with the Nasdaq Composite falling 0.83% and the S&P 500 retreating from intraday record highs to close down 0.17%, ending a four-day winning streak.

Meanwhile, markets continued to monitor progress in negotiations to reopen the Strait of Hormuz. U.S. President Trump stated that the U.S. and Iran might soon reach an agreement to reopen the strait, possibly as early as Wednesday or Thursday.

Qatar previously announced that both nations had drafted a plan to restore passage through the strait, and reports suggest Iran is considering allowing European countries to assist in clearing sea mines, boosting market confidence in the gradual normalization of regional shipping.

International oil prices held steady on Wednesday, with global benchmark Brent crude futures staying above $79 per barrel and U.S. West Texas Intermediate (WTI) crude hovering around $75 per barrel.

Despite a weak U.S. July ADP employment report, market reaction was relatively muted. The data showed only 44,000 new private-sector jobs, falling short of June’s revised 95,000 and well below the Dow Jones forecast of 75,000.

Additionally, Federal Reserve (Fed) Governor Lisa Cook stated she is prepared to support another rate hike if inflation remains persistently high. Minneapolis Fed President Neel Kashkari also believes the central bank should begin gradually raising rates to curb still-elevated inflation.

U.S. stock market performance on Wednesday (5th):

Dow Jones Industrial Average rose 263.24 points, or 0.49%, to 54,349.12.

Nasdaq Composite fell 221.55 points, or 0.83%, to 26,363.44.

S&P 500 declined 12.97 points, or 0.17%, to 7,723.55.

Philadelphia Semiconductor Index dropped 170.38 points, or 1.40%, to 12,008.88.

NYSE FANG+ Index fell 98.18 points, or 0.53%, to 18,433.87.

Key Stocks

Tech giants in the NYSE FANG+ Index were mostly lower. Meta (META-US) edged up 0.14%; Apple (AAPL-US) rose 0.52%; Alphabet (GOOGL-US) fell 4.03%; Microsoft (MSFT-US) declined 1.09%; Amazon (AMZN-US) dropped 1.72%.

Semiconductor stocks in the Philadelphia index were mixed. AMD (AMD-US) plunged 7.04%; Broadcom (AVGO-US) rose slightly by 0.03%; NVIDIA (NVDA-US) surged 3.43%; Applied Materials (AMAT-US) fell 2.26%; Qualcomm (QCOM-US) declined 3.16%; Micron (MU-US) edged up 0.06%.

Taiwanese ADRs mostly closed lower. TSMC ADR (TSM-US) fell 0.76%; ASE ADR (ASX-US) dropped 4.96%; UMC ADR (UMC-US) tumbled 6.50%; China Telecom ADR (CHT-US) rose 0.31%.

Corporate News

Alphabet (GOOGL-US), Google's parent company, fell X%, after announcing a restructuring of its artificial intelligence (AI) division and the departure of Jeff Dean, its chief scientist who had served for 27 years.

SpaceX (SPCX-US) plunged over 13% to $108.27 per share, hitting a record low, wiping out $225 billion in market value overnight.

(Image: Shutterstock)

SpaceX crashed after releasing its first earnings report as a public company. Its Q2 capital expenditures surged to approximately $18.4 billion—about six times year-on-year and above market expectations—with most funds allocated to AI infrastructure, sparking investor concerns over massive spending. Additionally, about 20% of shares are expected to be unlocked this week, further increasing selling pressure.

A JPMorgan report estimates SpaceX’s capital expenditures in 2027 and 2028 will approach $200 billion, implying even greater free cash flow pressure in 2027. This challenge, the report notes, is not unique to SpaceX but shared across hyperscale data center operators.

NVIDIA’s stock surged over 3% to $219.22 per share after SpaceX CEO Elon Musk stated during the earnings call that the company will “fully adopt NVIDIA processors” when building AI computing infrastructure and praised NVIDIA for having the “best AI computers.”

AMD (AMD-US) tumbled 7.04% to $482.05 per share. Although its Q2 revenue and earnings slightly exceeded market expectations and its Q3 revenue outlook was broadly in line, the overall performance failed to further excite investors.

Disney (DIS-US) jumped 3.63% to $101.76 per share, closing higher for four consecutive sessions. Despite slightly missing Q3 revenue expectations, its earnings per share beat forecasts, with experience segment revenue—including theme parks—up 10% year-on-year, showing solid growth.

Amgen (AMGN-US) surged 4.57% to $407.83 per share. Both Q2 revenue and earnings exceeded market expectations, and the company raised its full-year revenue and EPS guidance.

Eli Lilly (LLY-US) rose 4.67% to $1,169.86 per share. Driven by strong demand for weight-loss drugs, the company raised its full-year revenue forecast for 2026.

Wall Street Analysis

José Torres, senior economist at Interactive Brokers, said the U.S. market gave back some early gains, reflecting investor caution as they await clearer developments in the Middle East. He noted that “Wall Street taking a breather after a rapid rally is reasonable.”

Keith Lerner, Chief Investment Officer at Truist Advisory Services, said that while the current bull market may face further volatility, existing fundamental evidence still supports confidence in the stock market outlook.

Ross Mayfield, investment strategist at Baird, said risk appetite has clearly rebounded recently, and the sharp volatility over the past few trading days is “historically quite rare.” As of Tuesday, the three major indices recorded their best four-day performance since April 2025.

(All figures are updated as of press time; actual prices may vary)