- Asian stocks advanced, tracking Wall Street's gains, with Japan and South Korea's indices rising and Australia's equity benchmark hitting an intraday record, contributing to a 1% increase in the MSCI Asia Pacific Index.
- The S&P 500 climbed 1.8% to a record close, while the Nasdaq 100 surged 3.3%, marking the best four-day rally for chipmakers since 2020.
- Treasuries rallied in the New York session as oil prices fell, with West Texas Intermediate dropping 1% to about $75 a barrel amid signs of progress toward an interim US-Iran deal.
- Oil prices extended their drop as prospects for an interim US-Iran deal gained momentum, easing concerns about energy supplies.
Asian stocks surged as optimism over a potential interim deal between the US and Iran alleviated energy supply concerns, leading to a 1% increase in the MSCI Asia Pacific Index.1
The S&P 500 Index rose 1.8% to a record close, while the Nasdaq 100 jumped 3.3%.2
Oil prices fell, with US crude dropping 1% to around $75 a barrel, as discussions about reopening the Strait of Hormuz gained traction.
“Markets are reacting to the possibility that a reopening of the Strait of Hormuz could help normalize global oil supplies and reduce near-term energy price pressures,” said Tony Miano at Wells Fargo Investment Institute.
Meanwhile, Treasuries remained stable, with yields on the two-year note reaching their lowest level since July 20, as traders adjusted their expectations for Federal Reserve interest rate hikes.
A Bloomberg gauge of the dollar edged lower, while investors are also assessing the potential for the AI trade to regain momentum after a month of volatility.
The situation remains fluid, as even if an agreement is reached, it may not resolve all concerns regarding Iran's nuclear program or the ongoing conflict in the region.
“US crude fell 1% to about $75 a barrel as Qatar said a proposal to reopen the Strait of Hormuz had been drafted. Separately, India's finance minister Nirmala Sitharaman tabled a Bill that could allow MDR on UPI transactions, which hit 23.66 billion transfers worth ₹29.9 lakh crore in July.”
