S&P 500 Dips 0.1% from Record; Brent Soars 5% as Hormuz Risk Rises

The 0.1% dip in the S&P 500 masks a market at a crossroads: corporate America has just delivered the strongest quarterly earnings growth since the post-COVID boom, yet a single event in the Persian Gulf threatens to rekindle inflationary pressures that could delay rate cuts. For investors, the question is whether the earnings super-cycle can neutralize a renewed commodity shock. Berkshire Hathaway’s decision to buy stocks under Greg Abel signals confidence in valuations, but Intel’s $15 billion equity-raise plan hints at the capital intensity lurking beneath the AI euphoria.

The U.S. stock market dipped modestly from its all-time high on Monday, August 10, 2026, as a 5% surge in Brent crude oil prices injected a fresh dose of geopolitical uncertainty. The S&P 500 slipped 0.1% to 7,753.11, the Dow Jones Industrial Average fell 60 points (0.1%), and the Nasdaq Composite declined 0.3%. The culprit: ambiguous signals over when the Strait of Hormuz — the narrow waterway through which roughly one-fifth of the world's oil passes — might reopen after a sudden closure. The oil price spike snapped a streak of record-breaking gains powered by corporate earnings that are on track to show the strongest year-over-year growth since the post-COVID economic rebound of 2021.

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The S&P 500 slipped 0.1% to 7,753.11, the Dow Jones Industrial Average fell 60 points (0.1%), and the Nasdaq Composite declined 0.3%.

The backdrop to the modest decline is a market still digesting a remarkable earnings season. FactSet data indicate S&P 500 earnings per share soared 50% in the second quarter versus a year earlier, a feat last matched when the economy was roaring out of pandemic-era depths. That profit momentum has been the primary engine behind the rally that pushed stocks to a fresh peak on Friday, August 7. Even at elevated valuations, robust earnings have helped justify elevated price-to-earnings multiples, a point underscored by Berkshire Hathaway's actions.

Berkshire, now led by CEO Greg Abel, reported better-than-expected quarterly profits and disclosed that it had begun putting some of its enormous cash reserves to work by purchasing stocks. Shares of the conglomerate rose 1.5%, a vote of confidence in both the new leadership and the idea that there are still attractively priced opportunities despite broadly rich market valuations. The move offers a powerful counter-narrative to the longstanding criticism that U.S. stocks have become too expensive. By actively buying stocks, Berkshire signals that, in its view, robust earnings growth can offset lofty price tags.

The day’s deal activity added another layer of complexity. MarineMax soared 46.1% after agreeing to sell itself to a Blackstone portfolio company for about $1.5 billion in cash. Varex Imaging jumped 48.8% on news that Teledyne Technologies would acquire it for $18.90 per share. These transactions, like Berkshire’s stock purchases, suggest that deep-pocketed investors still see value in parts of the market. Conversely, Intel fell 4.1% after announcing it might sell up to $15 billion of its own stock to fund artificial-intelligence investments — a move that would dilute current shareholders and underscores the capital intensity of the AI race.