Wall Street ends down as expectations of Hormuz deal fade

Wall Street experienced a downturn on Aug 10 as confidence waned regarding a potential resolution to the Strait of Hormuz crisis. The Nasdaq and S&P 500 both closed lower, with declines in Intel and other chipmakers contributing to the market's pessimism. US President Donald Trump demanded that Iran compensate for the alleged damages caused in various conflicts, while Iran called for Washington to meet certain conditions, including recompensing Tehran for the harm since the US and Israel initiated strikes on its territory over five months ago.

The prospect of reopening the Strait of Hormuz to ensure the flow of oil could help alleviate concerns of escalating energy prices and inflation. Intel shares dropped 4.1%, following the chipmaker's announcement of plans to raise $15 billion through a share sale. The S&P 500 reached a record-high close on Aug 7 due to strong earnings results, but the ongoing Iran conflict has caused investors to lose risk sentiment.

Nvidia's stock declined 2.9%, and a potential $500 billion funding package for AI infrastructure development was being arranged by a group of financial firms. The S&P 500 closed at 7,753.12 points, the Nasdaq at 26,605.36 points, and the Dow Jones Industrial Average at 53,976.04 points. The Federal Reserve's potential interest rate hike in September faced a 52% chance, according to the CME FedWatch tool, with more earnings reports from companies like Applied Materials and Cisco set to be released.