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US Stocks Rally on Hopes of US-Iran Hormuz Agreement
Electronic Technology · Semiconductors · yonhap_finance · 2026-08-04
Major US indices opened higher as optimism surrounding a potential US-Iran deal to open the Strait of Hormuz and strong corporate earnings boosted sentiment.
What Happened
Market Sentiment: US stock indices opened with significant gains, driven by optimism over a potential agreement between the US and Iran regarding the Strait of Hormuz. Treasury Secretary Scott Bessent suggested that a deal could stabilize energy prices and lead to a broader market relief rally.
Corporate Performance: Caterpillar surged over 6% after raising its revenue outlook, fueled by robust demand for data center construction. Palantir also saw a massive 21% jump in its share price, reporting exceptional growth in its commercial segment driven by AI demand.
Sector Dynamics: Technology and industrial stocks led the market, while energy and utility sectors faced downward pressure due to falling oil prices. Meanwhile, optical communication firms like Coherent and Lumentum rallied following reports of potential US restrictions on certain Chinese components.
Global Outlook: European markets followed the positive trend, showing broad gains across major indices. Conversely, international oil prices retreated, with WTI crude dropping over 5% as market participants priced in the potential easing of geopolitical tensions.