Why Is the Stock Market Up Today, 8/3/26?
Complete. Here is the key summaryUS stock markets rose on August 3, 2026, as the S&P 500 and Nasdaq 100 gained following President Trump's report of a potential deal with Iran regarding the Strait of Hormuz. Despite conflicting statements from Tehran, oil prices dropped over 5%, easing inflation fears. Big Tech stocks led gains, with Microsoft, Amazon, Meta, and Alphabet rising at least 4% after strong earnings highlighting successful AI investments.
Both the S&P 500 (SPX) and the Nasdaq 100 (NDX) are in positive territory on Monday after President Trump backtracked on plans to attack Iran over the weekend.
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Trump said the U.S. and Iran have agreed to the "perimeters of a deal." The deal includes the reopening of the Strait of Hormuz and curbing Iran's nuclear program. He added that the two countries would resume peace negotiations today. However, Iran responded by saying it had no plans to resume talks and that Hormuz would remain closed until the war ends.
Oil Drops As Big Tech Powers Higher
Despite the contradictory statements, Brent crude (BZ), the global oil benchmark, is down by over 5% on the day. That's helped ease fears of inflation and rate hike expectations. The odds of at least one hike by year-end slipped to 85% from 87.9% on Friday, according to the CME FedWatch tool.
Elsewhere, Big Tech continues to lead the way. Microsoft (MSFT), Amazon (AMZN), Meta Platforms (META), and Alphabet (GOOGL) are all up by at least 4% after the companies reported their earnings last week. The results of the four tech leaders showed clear signs that their AI investments are beginning to pay off.