U.S. stocks closed sharply higher as news of progress in negotiations between the U.S. and Iran regarding the Strait of Hormuz led to a significant drop in international oil prices.
On August 4, the Dow Jones Industrial Average rose by 907.47 points, or 1.71%, to close at 54,085.88. The S&P 500 gained 136.02 points, or 1.79%, finishing at 7,736.52. The tech-heavy Nasdaq Composite also saw a rise of 671.10 points, or 2.59%, ending at 26,584.99.
Both the Dow and S&P 500 set new closing records. The S&P 500's new high comes nearly two months after it reached 7,609.78 on June 2.
Investor sentiment improved following comments from key officials in the Trump administration, who indicated that an agreement regarding the opening of the Strait of Hormuz could be reached soon.
U.S. Secretary of State Marco Rubio stated, "There has been progress in the negotiations, but we have not yet reached a final agreement. I hope a deal can be made very soon."
U.S. Treasury Secretary Scott Besant expressed a more optimistic outlook, saying, "I believe an agreement could be reached today or tomorrow to open the strait and bring this dispute to a more normal phase."
As expectations for progress in the negotiations grew, international oil prices plummeted. On the ICE Futures Exchange, October Brent crude futures fell by 5.3% to $79.36 per barrel. Meanwhile, September West Texas Intermediate (WTI) crude futures on the New York Mercantile Exchange dropped by 5.7% to $75.77 per barrel.
The rise in U.S. stocks was led by technology and semiconductor shares. Investors eased concerns over excessive investment in the artificial intelligence (AI) sector, leading to increased buying in related stocks.
Palantir, an AI-based data analytics company, reported second-quarter results that exceeded market expectations and raised its annual revenue forecast, causing its shares to soar by 29.45%. This marked the highest daily increase in about two and a half years since February 2024.
Major semiconductor stocks also surged, with Nvidia rising 2.56%, Micron up 7.62%, SanDisk increasing 10.97%, Marvell Technology climbing 12.81%, and Intel gaining 10.84%.
SK Hynix's American Depositary Receipts (ADRs) rose by 8.17%, influenced by optimistic reports from Wall Street financial firms recommending increased holdings.
* This article has been translated by AI.
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