US Stocks Rise More Than 1% as Easing Middle East Tensions Send Oil and Yields Lower

All three major US stock indexes rose more than 1% on August 3 as easing tensions in the Middle East pushed oil prices and Treasury yields lower. US stocks and bonds advanced together after President Donald Trump called off an attack on Iran, sending crude down about 5%.

The Dow Jones Industrial Average rose 693.38 points, or 1.32%, to 53,178.41. The S&P 500 gained 110.78 points, or 1.48%, to 7,600.50. The Nasdaq Composite climbed 540.04 points, or 2.13%, to 25,913.90.

Stocks rallied as military tensions in the Middle East eased. Oil prices tumbled after Trump signaled a large-scale strike on Iran and then canceled it while pressing for a resumption of talks. Treasury yields also fell, improving investor sentiment.

Brent crude futures settled at $83.77 a barrel, down 4.7% from the previous session. US West Texas Intermediate futures closed at $80.34 a barrel, down 5.1%.

Tradeweb data showed the yield on the benchmark 10-year US Treasury note fell 0.07 percentage point from the previous session to 4.68% near the close of New York trading. The market's advance was led by large technology stocks.

Alphabet rose 4.44%, while Microsoft gained 4.93%.

Amazon added 4.58% and Meta Platforms climbed 6.02%.

Amazon's gain lifted its market capitalization above $3 trillion.

Optimism about investment in AI infrastructure also rebounded after earnings reports from Microsoft and Amazon.

According to LSEG, 304 companies in the S&P 500 had reported earnings as of July 31.

Their average second-quarter profit growth was 29.3%. Some 85.2% posted results above Wall Street expectations.

Han Gyeong-u, Hankyung.com reporter case@hankyung.com