Dow Hits Record High on Optimism Around Iran Talks
US stocks rallied on August 3, sending the Dow Industrials to a record high as optimism around Iran talks pushed down oil prices and Treasury yields.
The drop in oil prices, which fell by about 5% after US President Donald Trump said that talks with Iran would take place on Monday, helped push U.S. Treasury yields lower, even as market participants continued to gauge the odds of a rate hike from the Federal Reserve.
Earnings have been strong this quarter, showing a 29.3% growth rate from the 304 companies in the S&P 500 that have reported earnings through Friday, with 85.2% topping analyst expectations. Amazon shares gained as the company's market cap surpassed $3 trillion for the first time after its earnings results last week.
The Fed's John Williams expressed optimism that inflation pressures would ease gradually, while a report from CME Fedwatch showed markets pricing in a 66.5% chance of a rate hike at the September meeting.