[New York Stock Exchange] US-Iran Dialogue Resumes, Big Tech Surges... Dow Hits Record High

All Major Indexes Close Higher... Nasdaq Jumps 2.13%
International Oil Prices Plunge

On the 3rd (local time), all three major New York stock indexes ended higher as international oil prices fell on news that the United States and Iran are resuming dialogue. The Dow Jones Index closed at a record high, while the Nasdaq jumped more than 2% as major technology stocks, including big tech companies, soared.

At the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 53,178.41, up 693.38 points (1.32%) from the previous session. The S&P 500 Index, representing large-cap stocks, rose 110.78 points (1.48%) to close at 7,600.50, while the tech-heavy Nasdaq jumped 540.04 points (2.13%) to 25,913.89.

Inside the New York Stock Exchange. New York, USA – Photo by Yoonju Hwang

The market was buoyed by increased risk appetite as geopolitical risks were temporarily eased. President Donald Trump stated over the past weekend that he had called off a planned strike on Iran and announced that talks with Iran are resuming.

Speaking with reporters at the White House, President Trump said, "This is Iran’s last chance to sign a good deal. We’ll know today or tomorrow." He also stated, "Before taking action to remove the leadership, I want to give them every last possible chance," hinting that military action could be taken if an agreement is not reached.

Iran denied that talks are underway with the United States. However, Iran acknowledged that it is in discussions with Oman regarding shipping through the Strait of Hormuz. Iranian Deputy Foreign Minister Abbas Araghchi stated that a new framework for the passage of merchant ships through the Strait of Hormuz is "nearing finalization."

It is reported that Oman and Iran are discussing the establishment of a temporary route to resume merchant shipping. The proposed plan from the mediating countries would permit vessels entering the Persian Gulf to do so via Iranian territorial waters and exit via Omani territorial waters, with no transit fees being charged.

Ian Lyngen of BMO Capital Markets commented on market activity, saying that the geopolitical environment is once again providing direction for macroeconomic prospects and that bargain-hunting investors were reassured.

International oil prices fell sharply across the board. On the New York Mercantile Exchange, September delivery West Texas Intermediate (WTI) crude fell 5.1% from the previous session to $80.34 per barrel. At the ICE Futures Exchange, October delivery Brent crude dropped 4.7% to $83.77 per barrel.

As inflation concerns eased somewhat, government bond yields also declined. The benchmark 10-year Treasury yield fell by nearly 6 basis points (1bp = 0.01 percentage point), reaching approximately 4.688%.

However, Adam Crisafulli, founder of Vital Knowledge, analyzed that "investors are holding back from premature optimism, thinking 'we’ve been through this before,’ and that more time is expected for the current conflict to be resolved."

Big Tech Soars Again...AI-Related Stock Selling Pressure Eases

The other driving force behind index gains was technology stocks. Nvidia soared 2.93%, Meta 6.02%, Alphabet 4.88%, and Microsoft (MS) 4.93%. Micron rose 0.79% from the previous session.

Michael Monahan, partner and portfolio manager at Founder ETF, told CNBC that the withdrawal of the U.S. airstrike on Iran may have contributed significantly to the market rally and that selling pressure on artificial intelligence (AI) stocks appears to be easing.

He noted, "With last week's closure of the 'Situational Awareness' fund, the weight of AI-related selling has dissipated. The week-to-week volatility is significant, but the overall tone and commentary indicate, 'We are working to resolve this issue.’"

Jed Ellerbrock, portfolio manager at Argent Capital Management, analyzed that "demand for accelerated computing far exceeds supply, and that gap is not narrowing." He added, "The giants in the cloud computing industry are in a very advantageous position, and the semiconductor industry continues to experience rapid growth."

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