[New York Stock Exchange] US-Iran Talks Resume... Markets Surge Across the Board

Crude Oil Prices Plunge Across the Board

U.S. Treasury Yields Decline

"Markets Are Refraining from Premature Optimism"

After U.S. President Donald Trump canceled plans for military operations against Iran and announced that he would discuss the reopening of the Strait of Hormuz with Iran, all three major U.S. indexes surged on the 3rd (local time). Crude oil prices and U.S. Treasury yields also fell across the board, reflecting heightened investor appetite for risk assets.

As of 9:50 a.m. at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average was up 579.53 points (1.10%) at 53,064.56 compared to the previous trading day. The S&P 500 Index, which focuses on large-cap stocks, rose 57.68 points (0.77%) to 7,547.40, while the tech-heavy Nasdaq Composite climbed 237.33 points (0.93%) to 25,611.79.

New York Stock Exchange. New York, USA — special correspondent Yoonju Hwang

President Trump stated the day before that he had withdrawn plans to attack Iran and that talks with Iran would resume. During these discussions, the two sides are expected to address passage through the Strait of Hormuz and denuclearization issues.

As a result, crude oil prices also plunged. As of this moment at the New York Mercantile Exchange, West Texas Intermediate (WTI) for September delivery was down 7.22% from the previous session at $78.59 per barrel. On the ICE Futures Exchange, Brent crude for October delivery fell 5.86% to $82.87 per barrel.

Oil stocks were trading lower, with ExxonMobil down 0.45% and Chevron down 1.00%. Energy stocks Diamondback Energy, APA, and Occidental Petroleum also declined by 1.94%, 1.38%, and 2.68%, respectively. In contrast, Delta Air Lines rose 4.16%, American Airlines was up 6.32%, and United Airlines gained 6.27%.

Technology and semiconductor stocks were generally strong. Notable gains were seen in Nvidia (up 0.73%), Microsoft (up 5.59%), Amazon (up 4.71%), Alphabet (up 4.53%), Meta (up 5.87%), and Tesla (up 2.04%). However, Micron was down 4.10% compared to the previous trading day.

As inflation concerns eased somewhat, U.S. Treasury yields also declined. The yield on the 10-year Treasury fell by 7 basis points (1bp = 0.01 percentage point) to approximately 4.67%.

Adam Crisafulli, founder of Vital Knowledge, commented, "Investors are refraining from premature optimism, thinking, 'We've seen situations like this before,' and expect that this conflict will take much longer to resolve—even if a resolution is eventually reached."

Meanwhile, this week, the release of July’s nonfarm payroll and unemployment rate data is scheduled. According to FactSet’s consensus estimates, the U.S. economy is expected to have added 87,500 nonfarm payroll jobs in July, up from 57,000 in the previous month. The unemployment rate is also projected to edge up slightly from 4.2% to 4.3%.

This content was produced with the assistance of AI translation services.