US Stocks Surge on Iran Talks Optimism and Strong Earnings
US stocks kicked off August on a strong note, propelling the Dow Industrials to a record close. The rally was driven by optimism surrounding US-Iran talks, which led to a decline in oil prices and Treasury yields.
Crude prices settled down around 5% following US President Donald Trump's statement that talks with Iran would take place on Monday, despite Tehran's denial of planned negotiations.
The drop in oil prices helped push US Treasury yields lower, even as market participants continued to assess the likelihood of a rate hike from the Federal Reserve amid ongoing Iran tensions.
Earnings season has been strong so far this quarter, with a 29.3% growth rate reported by the 304 companies in the S&P 500 that have released earnings through Friday. Amazon shares advanced 4.6% as its market cap surpassed $3 trillion for the first time after its earnings results last week.