Dow Hits Record High as Oil Falls 5% on Strait of Hormuz Optimism
Updated
Updated · CNBC · May 26
Dow Hits Record High as Oil Falls 5% on Strait of Hormuz Optimism
12 articles · Updated · CNBC · May 26
The Dow rose 182 points, or 0.36%, to a record close Wednesday, while the S&P 500 added 0.02% and the Nasdaq edged up 0.07%.
U.S. crude dropped 5% to about $88 a barrel after Iranian state media said Tehran aimed to restore Strait of Hormuz commercial traffic to pre-war levels within a month.
The White House called that Iranian report a "complete fabrication," leaving the oil pullback tied to a claim Washington immediately disputed.
Chip stocks that had driven recent gains lost momentum: Micron was up about 3% after Tuesday's 19% surge, while Intel fell 2% and Qualcomm dropped 7%.
JPMorgan also weighed on the broader market, sliding 2% after Jamie Dimon said the bank could spend as much as $20 billion on an acquisition in coming years.
With oil volatility and major stocks wavering, what is truly driving the Dow to its new record high?
Is the AI chip market entering a sustainable super-cycle, or are soaring valuations signaling another dot-com bubble?