11. Aug 2026
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(AWP Alliance News) - Shares ended lower in New York on Tuesday despite an unexpected rise in small business optimism, as the continued stalemate in US-Iran negotiations led oil higher.
The Dow Jones Industrial Average closed down 184.13 points, 0.3%, at 53,791.85. The S&P 500 fell 24.91 points, 0.3%, to 7,728.20. The Nasdaq Composite ended down 159.91 points, 0.6%, at 26,445.45.
"US small business optimism hit a near one-year high amid significantly improved hiring plans but the data had little impact on US stock indices which traded flat as US existing home sales fell for a second month. Traders kept an eye on energy prices and the risks of a Fed rate hike this year with Treasury yields remaining close to last week's over one-year highs....Comments from Pakistan's defence minister and Qatar's foreign ministry suggested negotiations were advancing, although renewed US pressure on Tehran continues to create uncertainty and keeps oil prices volatile," said IG Chief Technical Analyst Axel Rudolph.
The National Federation of Independent Business small business optimism index rose to 99.8 points in July, beating the FXStreet-cited consensus for a 97.5 reading and its 52-year average of 98.0, from 97.4 in June.
It marked the highest level since August 2025.
Existing home sales decreased by 1.7% to a seasonally adjusted annual rate of 4.06 million in July, after a 2.4% decline in June, the National Association of Realtors said Tuesday.
A smaller decline of 1.4% to 4.05 million was forecast by FXStreet-cited consensus.
On Wednesday, investors receive the July consumer price index, followed by the producer price index on Thursday.
Against the dollar, the euro was at USD1.1542, down from USD1.1546. Sterling fell to USD1.3507 from USD1.3510. Against the yen, the dollar was at JPY159.27, up from JPY159.09.
The yield on the 10-year US Treasury fell to 4.69% from 4.70%, while the 30-year yield was flat at 5.25%.
Gold jumped to USD4,370.63 an ounce from USD4,360.48 on Monday.
Pakistan's defence minister Khawaja Asif on Tuesday said the US and Iran were "close to some sort of arrangement" over the Strait of Hormuz, initially sending oil prices lower.
"Things are shaping up in favour of peace," Asif said.
Moreover, Al Jazeera said Tuesday that discussions between Iran and Oman on the future of shipping in the strait are at an advanced stage.
But oil ended the day higher after a US helicopter fired into the engine room of a Panama-flagged cargo ship attempting to break the American blockade of Iran.
A barrel of Brent fetched USD89.19 a barrel on Tuesday, up from USD87.32 on Monday. West Texas Intermediate rose to USD83.52 from USD81.74.
AI startup Manus said Tuesday it would resume "operating as an independent company," months after Beijing blocked Meta Platforms' multi-billion-dollar acquisition of the firm.
Meta in December agreed to acquire Manus, an artificial intelligence agent developed by the startup Butterfly Effect, in a deal reportedly worth around USD2 billion.
However, China's top economic planning body blocked the deal in April and ordered them to "withdraw the acquisition."
Meta ended up 0.7%.
Baker Hughes on Tuesday announced a multi-year energy technology contract with Kuwait Oil Co Ksc, under which it will participate in the Ahmadi Innovation Valley project. The initiative aims to develop "an in-country research and innovation hub to address its strategic oil and gas development priorities."
KOC, a hydrocarbons developer and subsidiary of the state-owned Kuwait Petroleum Corp, will partner with Baker Hughes to develop technology solutions to enhance production and flow assurance.
Baker Hughes closed up 1.2%.
Intel on Tuesday said it was raising its common stock offering to USD20 billion, up from the USD15.0 billion originally announced on Monday.
Intel closed up 0.2%.
Airbnb and Boeing rose 0.2% on Tuesday following price target upgrades by PhillipCapital and Argus, respectively. AppLovin shed 6.0% after a downgrade from Bank of America.
In Europe, London's FTSE 100 fell 0.2%. The CAC 40 in Paris ended down 0.1%. The DAX 40 ended 0.3% higher in Frankfurt.
In China, the Shanghai Composite closed down 0.8%. The Hang Seng fell 1.0% in Hong Kong. The Nikkei 225 in Tokyo gained 2.1%. The S&P/ASX 200 rose 0.2% in Sydney.
Advisers to fast fashion retailer Shein Group Ltd are pitching the company at a value of less than USD30 billion, 70% below its peak, in order to woo investors for its planned initial public offering in Hong Kong, the Financial Times reported on Monday.
Last month, the China Securities Regulatory Commission approved Shein's application to list on the Hong Kong Stock Exchange, the company having been rebuffed from IPOs in London and New York due to concerns about its Chinese supply chain.
Shein plans to sell up to 341.6 million shares in its HK listing.
Wednesday's global economic calendar has the US monthly budget statement and the consumer price index.
By Aidan Lane, Alliance News reporter
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