The major US stock indexes drifted in a narrow range Tuesday as Wall Street waited on two key triggers: a potential deal to reopen the Strait of Hormuz and Wednesday’s Consumer Price Index report.
The Dow Jones Industrial Average slipped about 43 to 49 points, or roughly 0.1%. The S&P 500 was also down around 0.1%, and the Nasdaq Composite fell approximately 0.3%.
The S&P 500 hit a fresh closing high on Friday at 7,757.64. It has since run out of momentum and needs to close above that level to extend the record.
Tom Essaye of Sevens Report Research described the market as being at “a little stop light,” waiting for clarity on both Iran and inflation before the next leg higher.
President Trump pushed back on Iran’s demand for war reparations over the weekend, saying he would let economic pressure do the work. He told Axios, “We are only semi-negotiating with them.”
BREAKING: US oil prices surge over +5% to $82/barrel after President Trump says the US is now demanding compensation from Iran. pic.twitter.com/9NWTzGXnG5
— The Kobeissi Letter (@KobeissiLetter) August 10, 2026
Iranian foreign minister Abbas Araghchi echoed the deadlock, saying there was “no possibility of restarting negotiations” under current conditions.
Oil markets got some brief relief after Pakistan’s defense minister said the two countries were “close to some sort of arrangement.” But prices remained elevated, with Brent crude holding near $87 a barrel.
The persistently high oil prices are feeding inflation concerns heading into Wednesday’s CPI release.
Friday’s jobs report came in softer than expected. That shifted bets toward a Federal Reserve rate hike in September rather than a pause.
Cleveland Fed president Beth Hammack told Yahoo Finance on Monday that it may take more than one rate hike to bring inflation under control.
The 10-year Treasury yield dipped slightly to 4.69% on Tuesday. Essaye warned that a hot CPI print could push yields toward 5% by the end of the week, which would be a fresh headwind for equities.
A cooler reading, on the other hand, could keep the Fed’s current pause in place and support stocks.
New fundraising from Intel and Nvidia has put the cost of building out AI infrastructure back in the spotlight.
Earnings from CoreWeave and Super Micro Computer, due after the bell Tuesday, are expected to give markets a clearer read on demand in the AI hardware space.
Investors are watching these results closely after a period of heavy capital spending by major tech companies.
The market’s next move will likely depend on what CPI shows Wednesday morning.
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