Dow slips as Hormuz uncertainty, Intel share sale weigh on Wall Street

• WTI crude jumped 5% to $82.16 per barrel and Brent rose 5% to $87.74 amid continued Strait of Hormuz disruption, as Iran maintains conditions must be met before reopening the critical shipping route
• Intel shares led chip stocks lower after announcing a $15 billion common stock offering, raising dilution concerns among investors despite plans to fund AI infrastructure expansion
• Probability of a September Fed rate hike dropped to 52% from 67% following last week's disappointing jobs report showing 23,000 job losses, while 85% of S&P 500 companies have beaten earnings expectations this season

Market Summary: Dow Slips on Geopolitical Tensions and Intel Dilution Concerns

Key Market Movements

U.S. equities closed modestly lower on Monday, August 10, 2026, with the Dow Jones falling 60.95 points (-0.11%) to 53,975.98. The S&P 500 declined 0.06% to 7,753.11, while the Nasdaq Composite dropped 0.32% to 26,605.36, despite the S&P 500 hitting a record high Friday.

Strait of Hormuz Drives Energy Surge

Geopolitical uncertainty surrounding the Strait of Hormuz intensified as Iran maintained preconditions for reopening the critical shipping route. Iran announced progress on alternative shipping lanes with Oman but demanded the U.S. meet specific requirements before resuming traffic. This pushed oil prices sharply higher:

• WTI crude: +5% to $82.16/barrel
• Brent crude: +5% to $87.74/barrel

The disruption raises concerns about sustained energy costs and persistent inflation pressures.

Intel Leads Tech Weakness

Intel's announcement of a $15 billion common stock offering weighed heavily on the chipmaker and broader technology sector. The equity raise, while supporting AI infrastructure investments, creates immediate dilution concerns for existing shareholders. Apple fell 1.5%, contributing to Nasdaq underperformance.

Critical Inflation Data Ahead

Investors await key inflation reports this week: Consumer Price Index (Wednesday) and Producer Price Index (Thursday). These will shape Federal Reserve policy expectations following last week's unexpectedly weak July jobs report showing 23,000 job losses.

Fed rate hike probability for September has declined to 52% from 67% a week earlier, according to CME FedWatch.

Earnings Remain Supportive

Corporate earnings continue providing market support, with 85% of 436 reporting S&P 500 companies beating analyst expectations, per LSEG data. The S&P 500 posted its strongest weekly gains since April last week.