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What Happened in Markets Today

Shares of AI darlings Western Digital and Sandisk fell. The computer-memory companies each reported quarterly results late Tuesday. Sandisk's forward guidance was slightly below previous analyst estimates, while Western Digital's outlook was in-line with expectations. Western Digital declined 13%, while Sandisk dropped 7%.

Oil prices jumped. Investors awaited updates on talks to reopen the Strait of Hormuz after Iran said it has agreed with Oman on a shipping route through the waterway. Brent crude climbed almost 4%.

Honeywell Aerospace shares tumbled 23%. In the company's first earnings report since spinning off in June from Honeywell Technologies, it cut its outlook for the year after supply constraints weighed on sales growth.

Datadog sank 19%. The data-security company said one of its biggest customers, a leading AI company, is reducing usage. Second-quarter earnings still grew, but management's sales outlook for the year was below Wall Street estimates.

The Dow industrials fell 0.9%, snapping a five-session winning streak. The S&P 500 slipped 0.2%, and the Nasdaq declined 0.1%

Markets at a Glance

One Big Story

Ram Rupireddy could hardly believe his luck in 2020 when his friend told him about a New Jersey firm pitching investment opportunities in SpaceX and other buzzy privately held companies.

Rupireddy wired over money before the end of the year, including $17,250 to take part in a fund that held shares in SpaceX, according to documents reviewed by The Wall Street Journal. At the time, he estimated the rocket maker was valued at $58 billion.

When SpaceX went public this June at a $1.77 trillion valuation, Rupireddy's dream of a windfall seemed within reach. It's turned into more of a nightmare. Rupireddy said the investment firm eventually told him in an email that it sold the SpaceX shares he was exposed to in 2024, when Rupireddy's holding was worth $45,450.

What's Coming Up

   -- Economic reports due Friday include U.S. unemployment, hourly wages and 
      consumer credit. Richmond Fed President Tom Barkin is scheduled to 
      deliver remarks. 
 
   -- Companies reporting quarterly results on Friday include Vistra, Take-Two 
      Interactive Software, Fluor and Under Armour. 

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About Us

Markets P.M. catches you up on the day's most important markets moves, delivered after the closing bell. This email was written by Jonathan Weil, a columnist for Heard on the Street, The Wall Street Journal's home for financial analysis and commentary. To send us your feedback, reply to this email. Got a tip for us? Here's how to submit.