On Monday, August 3, 2026, oil prices dropped significantly and major stock indexes in the U.S. rose amid signs of easing tensions between the U.S. and Iran. U.S. crude oil fell 6.07% to $79.53 a barrel, and Brent crude dropped 4.88% to $83.64 a barrel.

President Donald Trump refrained from launching a fresh attack on Iran, aiming to secure a quick deal that could increase oil supplies from the Gulf. However, Iran stated there were no ongoing talks or plans for meetings with the U.S.

More than 300 companies in the S&P 500 have reported earnings, with approximately 85% beating expectations, contributing to positive market sentiment. Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said, "The sharp drop in oil prices, due to Trump's cancelling severe attacks against Iran and hopes of a diplomatic resolution, set the ball rolling this morning." He also noted that upbeat earnings guidance supported equities.

The Dow Jones Industrial Average rose by 512.69 points (0.98%) to 52,998.45, the S&P 500 increased by 96.74 points (1.29%) to 7,586.46, and the Nasdaq Composite gained 512.28 points (2.02%) to 25,886.13.

In corporate news, AstraZeneca's investors reacted negatively to reports of merger talks with U.S. rival Bristol Myers Squibb, which could create one of the world's largest drugmakers valued at nearly $400 billion.

Meanwhile, Japan and the U.S. conducted a coordinated yen-buying intervention to halt the yen's slide to fresh 40-year lows. Japan's finance ministry confirmed the rare bilateral action and stated they would not hesitate to take further measures if necessary.

Sources