<US Market Close> Trump Gives Iran 'Final Chance,' Dow Surges Nearly 700 Points to Record High, Amazon Market Cap Breaks $3 Trillion

U.S. stocks closed higher on Monday (Aug. 3), with large technology stocks staging a strong rebound. Former President Donald Trump’s announcement that he had canceled planned attacks on Iran sent international oil prices tumbling, significantly improving market sentiment.

The Dow Jones Industrial Average surged nearly 700 points, closing at a new record high. The Nasdaq Composite Index jumped over 2%, and the S&P 500 Index approached its all-time peak.

In addition to the tech rally, the de-escalation of U.S.-Iran tensions played a key role in lifting equities.

Although Iran denied direct negotiations with the U.S., Trump claimed contact was ongoing. He stated that initial talks would focus on reopening the Strait of Hormuz, followed by discussions on Iran’s denuclearization.

On Monday, Trump issued a final ultimatum to Iran, warning Tehran it had one 'last chance' to sign a favorable agreement—or face possible 'decapitation.'

Oil prices plunged in response. Brent crude futures fell 4.73% to $83.77 per barrel, while West Texas Intermediate (WTI) crude dropped 5.11% to $80.34 per barrel. The decline in oil prices slightly eased concerns about renewed inflationary pressures.

U.S. Treasury yields also declined. The benchmark 10-year yield dropped nearly 6 basis points to around 4.688%, reflecting reduced market anxiety over inflation following the oil price slide.

On the economic front, the Institute for Supply Management (ISM) reported that the July manufacturing Purchasing Managers’ Index (PMI) rose 2.3 points month-on-month to 55.6, above the 50 threshold indicating expansion, signaling continued improvement in manufacturing activity.

The most anticipated data this week is Friday’s July nonfarm payrolls report. Markets expect further job gains, which could provide crucial insights into the health of the U.S. labor market and the Federal Reserve’s future policy path.

Major U.S. indices on Monday (Aug. 3):

- Dow Jones Industrial Average: +693.38 points (+1.32%), closing at 53,178.41 - Nasdaq Composite Index: +540.04 points (+2.13%), closing at 25,913.90 - S&P 500 Index: +110.78 points (+1.48%), closing at 7,600.50 - Philadelphia Semiconductor Index: +119.28 points (+1.05%), closing at 11,430.35 - NYSE FANG+ Index: +490.80 points (+2.84%), closing at 17,752.15

Key Individual Stocks:

Most of the tech titans in the NYSE FANG+ Index gained. Meta (META-US) rose 6.02%; Apple (AAPL-US) fell 1.78%; Alphabet (GOOGL-US) surged 4.88%; Microsoft (MSFT-US) climbed 4.93%; Amazon (AMZN-US) jumped 4.58%.

All semiconductor stocks in the Philadelphia index closed higher. AMD (AMD-US) up 1.78%; Broadcom (AVGO-US) up 0.76%; NVIDIA (NVDA-US) up 2.93%; Applied Materials (AMAT-US) up 2.08%; Qualcomm (QCOM-US) up 2.68%; Micron (MU-US) up 0.79%.

Taiwan-related ADRs were mixed. TSMC ADR (TSM-US) rose 0.46%; ASE ADR (ASX-US) surged 4.29%; UMC ADR (UMC-US) fell 1.79%; China Telecom ADR (CHT-US) dipped 0.42%.

Corporate News:

Apple (AAPL-US) declined about 1.8% to close at $303.42, marking its fourth consecutive losing session. Alphabet’s market cap surpassed Apple’s, demoting Apple to the third-largest U.S. company by market value.

Amazon (AMZN-US) soared 4.58% to close at a record high of $284.02, its best day since May 5, with its market cap exceeding $3 trillion for the first time. The rally follows last week’s second-quarter earnings report, where AWS revenue significantly beat expectations.

SpaceX (SPCX-US) jumped 5.68% to $114.53 per share. Elon Musk’s AI and rocket company is set to release its Q2 earnings on Tuesday. As of Monday’s close, SpaceX’s stock remained about 15.2% below its $135 IPO price.

Boeing (BA-US) skyrocketed 8% to $233.49. The company received a rare 'double upgrade' alongside aircraft certification from the Federal Aviation Administration (FAA). BNP Paribas upgraded Boeing from 'sell' to 'buy' and raised its price target from $230 to $300.

Alibaba ADR (BABA-US) rose 4.13% to $127.30. The Chinese e-commerce giant unveiled its new AI model, Qwen 3.8-Max, boosting investor confidence.

Wall Street Analysis:

Michael Monaghan, Portfolio Manager at Founder ETFs, said selling pressure on AI-related stocks has gradually subsided after the liquidation of Situational Awareness, a hedge fund founded by a former OpenAI researcher. Meanwhile, markets had feared worsening Middle East tensions over the weekend, but U.S. rhetoric and posture suggest efforts to resolve issues through negotiation.

However, investors remain cautious.

Adam Crisafulli, founder of Vital Knowledge, noted that similar de-escalations have occurred before, and the U.S.-Iran conflict remains far from resolved. As such, market willingness to chase prices remains relatively restrained.

(All figures are updated as of press time; actual quotes may vary.)