Major US stock indices ended the session with convincing gains, supported by investor optimism regarding a potential diplomatic resolution to the conflict in the Middle East and strong macroeconomic data from the US.
Market Results and Technology Sector
The large-cap benchmark Dow Jones Industrial Average advanced by 1.32% (nearly 700 points) to a level of 53,178.86 points. The broad S&P 500 index reported a rise of 1.48% to 7,600.49 points, while the technology-heavy Nasdaq Composite rose by 2.13% to 25,913.89 points.
In the technology sector, shares of Nvidia (+2.9%), AMD (+1.78%), and Broadcom (+0.77%) were observed to increase. Meanwhile, Walmart shares saw a decline of over 0.4%, and oil giants ExxonMobil and Chevron fell by 0.25% and 1.86%, respectively.
Geopolitical Tension and Diplomacy
Investors are closely monitoring signals from Washington and Tehran regarding a potential ceasefire agreement. US President Donald Trump stated that negotiations are currently being conducted at the initiative of Iran, Saudi Arabia, the United Arab Emirates, and Qatar.
However, the American leader maintains a firm stance, stating that Iran has a "last chance" to strike a deal before large-scale military action is taken. Trump also criticized the high profits of oil companies, which he claims are a result of crude oil shortages due to the war in the region.
Economic Indicators and Other Markets
The stock market growth was also supported by the latest report on US industrial activity. The Purchasing Managers' Index (PMI) for manufacturing companies increased to 55.6 points in July—the highest level since May 2022. This indicates strong industrial activity and order growth, which is boosting factory employment.
The following dynamics were observed in other markets:
- Oil: Brent crude prices fell by 4.81% to $83.70 per barrel, while US WTI futures saw a decline of 5.35% to $80.14.
- Gold: The price rose slightly by 0.03% to $4,108.3 per ounce.
- Bonds: Yields on 10-year and 30-year US Treasury bonds decreased to 4.688% and 5.23%, respectively.
- Dollar: The US Dollar Index noted a slight increase of 0.06% to 99.97 points.
Legal Disputes Regarding Tariffs
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Parallel to the market movements, a group of 25 Democrat-led states filed a lawsuit against the Donald Trump administration. They are challenging the latest package of customs tariffs on goods from 60 US trading partners. The case was brought to the International Trade Court in New York, after small American companies also requested a halt to the tariffs.