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Dow hits record close as Iran talks lift stocks and cool oil
Crude fell about 5% and Treasury yields edged lower after Trump said talks to reopen the Strait of Hormuz were planned.
U.S. stocks began August with a rally that pushed the Dow Industrials to a record closing high, as signs of de-escalation in U.S.-Iran tensions weighed on oil prices and lowered Treasury yields, according to LiveMint Markets, citing Reuters.
In early trading, crude settled down about 5%, after Donald Trump said on Sunday that talks with Iran to reopen the Strait of Hormuz would take place on Monday, though Iran disputed the timing. The drop in oil helped pull Treasury yields lower, while investors continued to assess the odds of a Federal Reserve rate hike if the conflict dragged on.
The session also reflected sector rotation, with communication services the best performer among the S&P 500 sectors, rising more than 4% on gains from Meta Platforms and Alphabet, while energy fell more than 1% on the day’s lag.
Earnings and AI-related moves supported the broader advance, with 304 S&P 500 companies having reported through Friday showing 29.3% growth and 85.2% beating analyst expectations, according to LSEG data. Amazon shares climbed after its market capitalization surpassed $3 trillion for the first time, while SpaceX advanced ahead of its first quarterly results since going public, Reuters reported. Preliminary figures put the S&P 500 up 1.48% at 7,600.61, the Nasdaq Composite up 2.12% at 25,912.86, and the Dow up 1.34% at 53,189.55.
Stocks also reflected ongoing deal headlines, with Bristol Myers Squibb shares little changed after a report of preliminary merger talks with AstraZeneca, a combination that could create a drugmaker valued at nearly $400 billion. Hotel operator Marriott International also traded on the day’s updates, the report noted.
Latest closeWTI crude $80.00 ▼5.5%|S&P 500 7,600.50 ▲1.5%|Nasdaq Comp. 25,913.90 ▲2.1%