Stock markets in the United States had a strong start to the month on August 1, boosted by lower oil prices. This drop occurred after President Donald Trump announced the suspension of planned attacks against Iran.
In recent trading, the Nasdaq Composite index, which focuses on the technology sector, advanced 1.9%. The S&P 500, considered a benchmark, grew 1.3%, and the Dow Jones Industrial Average, made up of large companies, rose 1.1%, adding 550 points.
The decrease in oil values was a reaction to Trump’s statement, which, through Truth Social, reported the postponement of an attack on Iran. The condition for this measure was a “quick AGREEMENT” for the reopening of the Strait of Hormuz. Futures contracts for West Texas Intermediate (WTI), the main reference in the US, registered a drop of 5.9%, reaching US$79.65 per barrel. Brent, a global parameter, fell 4.5%, trading at US$84.
The interest rate on US Treasury bonds maturing in ten years also fell. This drop has a direct impact on interest rates on various types of consumer loans, such as mortgages. Recently, the rate stood at approximately 4.69%, a value five basis points lower than that recorded at the previous closing, which had been the highest since January 2025.
The three largest indices in the United States ended a week of unstable trading with gains, however, only the Dow Jones ended the month of July with a positive balance.
Over the next few days, investors’ focus will be on the US employment report for July, scheduled to be released on Friday. The corporate balance sheets of companies such as Palantir (PLTR), SpaceX (SPCX), McDonald’s (MCD) and Advanced Micro Devices (AMD) will also be monitored. Palantir shares rose 1.5% before the publication of its results, after the market closed.
“The S&P 500 swung entirely within the June range in July as negative inflation surprises and strong corporate earnings were offset by weakness in the semiconductor sector, renewed geopolitical volatility and yet another rally in oil,” said Chris Larkin, managing director of trading and investing at E*TRADE from Morgan Stanley. He added: “This week, the market is poised to get an early boost from oil’s drop, but the intermittent nature of US-Iran diplomacy could mean that earnings and jobs data will have to carry the weight of bullish investors this week.”
Amazon (AMZN) shares, which had risen 15% after the release of good results in cloud computing, rose another 5% on August 1, making the company’s market capitalization surpass US$3 trillion for the first time. On the other hand, shares of Apple (AAPL), which registered a drop of 7% and were mainly responsible for the drop in the S&P 500 and Nasdaq in the previous session, fell 1.5%. The other technology companies in the group known as the “Big Seven” showed appreciation.
AstraZeneca (AZN) had a 9% drop in the value of its shares, while Bristol Myers Squibb (BMY) fell slightly. This move occurred after an article, published by a financial periodical, indicated that the two large pharmaceutical companies were negotiating a possible merger.
After the publication of its financial results, Marriott International (MAR) shares fell 7%, and Tyson Foods (TSN) shares rose 2.5%.
The US dollar index, which monitors the currency’s exchange rate against various foreign currencies, registered a slight increase, reaching 99.97. However, the American currency depreciated against the yen, following coordinated action between the United States and Japan to support the Japanese currency, which reached its lowest value in 40 years against the dollar.
Bitcoin was trading close to US$63,700, showing a small increase over the last 24 hours. Gold futures contracts then fell 0.4%, trading at US$4,090 per ounce.
