Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., Aug. 7, 2026.
Jeenah Moon | Reuters
The Nasdaq Composite rose to a fresh all-time intraday high on Tuesday, while the S&P 500 was relatively unchanged as traders continued to keep an eye on developments between the U.S. and Iran.
The tech-heavy Nasdaq climbed 0.45% to a record close of 27,244.28, supported by a nearly 7% gain in shares of Sandisk following a bullish call from Rosenblatt. The S&P 500 was marginally lower at 7,764.64, while the Dow Jones Industrial Average shed 185.14 points, or 0.36%, to end at 51,863.69.
Oil prices moved lower after President Donald Trump said that U.S. officials had a “very good meeting” with Iran’s delegation and that it lasted about three hours. Global benchmark Brent crude futures settled down 1.09% at $99.25 per barrel. U.S. crude futures traded 1.24% lower to settle at $94.59 a barrel. That marked the fifth straight day of losses for both benchmarks.
Addressing the United Nations General Assembly Tuesday, Trump said that he has a “big decision” to make on whether to pursue a deal with Iran or “annihilate” the country.
He also said that he believes “we’ll make a deal right after the election because it doesn’t make sense for them not to,” adding that “they’re waiting to see how I do in the midterm election.”
Oil had fallen earlier in the day after Iran reportedly offered to reopen the Strait of Hormuz within seven days. To be sure, the reports have not been independently verified by CNBC. Saudi Arabia is also reportedly planning to restart its East-West pipeline as early as this week.
Tuesday’s moves follow a strong session on Wall Street, with the S&P 500 posting its best day since Aug. 4 and the Nasdaq notching its first closing record since June.
A decline in oil prices fueled the stock market’s gains, while Treasury yields pulled back as well. Even prior to the Federal Reserve’s move to hike its key interest rate by a quarter point last week, Treasury yields have been trending higher as the economy contends with rising debt, elevated oil prices and stubborn inflation.
Treasury yields last edged lower Tuesday, with the yield on the 10-year trading at 4.959%.
“I don’t think markets have fully appreciated what a rate hike cycle even with a higher yield environment might mean,” said Tom Garretson, senior portfolio strategist of fixed income strategies at RBC Wealth Management.
“I do think there’s quite a bit of complacency still priced into markets with respect to the idea that the 10-year [yield] moves above 5% and that there’s probably a pretty persistent risk that the Fed could certainly keep raising rates at least two more times and potentially back towards 5% into early 2027,” he continued.
Traders’ attention will turn to this week’s summit in Washington, DC between President Donald Trump and Chinese leader Xi Jinping. Artificial intelligence, the Iran war, tariffs and rare earth metals are expected to be among the key topics covered in the meeting. Treasury Secretary Scott Bessent convened with Chinese Vice Premier He Lifeng prior to Xi’s visit to the U.S.
