Overnight US Stocks | Possible US-Iran Agreement Ignites Bullish Sentiment, S&P 500 Hits First New High Since June, SanDisk (SNDK.US) Surges Over 10%

According to Zhitong Finance APP, on Tuesday, hopes for an agreement between the US and Iran to restore navigation through the Strait of Hormuz pushed the stock market to record highs. All three major indices closed sharply higher, with the S&P 500 Index hitting its first new high since June.

[US Stocks] At the close, the S&P 500 Index rose 1.79% to 7,736.52 points, marking the first new high since June; the Nasdaq Composite Index gained 2.59% to 26,584.99 points; the Dow Jones Industrial Average increased by 907.47 points, or 1.71%, to 54,085.88 points. Both the S&P 500 and Dow closed at record highs. The Philadelphia Semiconductor Index surged 6.55%. SK Hynix (SKHY.US) climbed 8%, Micron Technology (MU.US) advanced 7.6%, SanDisk (SNDK.US) jumped 10.8%, Nvidia (NVDA.US) was up over 2%, and SpaceX (SPCX.US) gained 9.4%. The Nasdaq Golden Dragon China Index closed down 0.35%, with Alibaba (BABA.US) rising 1%.

[European Stocks] The German DAX30 Index rose 386.44 points, or 1.51%, to 26,017.22; the FTSE 100 Index dropped 13.15 points, or 0.12%, to 10,854.90; the French CAC40 Index added 104.18 points, or 1.22%, to 8,613.82; the Euro Stoxx 50 Index advanced 72.34 points, or 1.14%, to 6,430.35; Spain’s IBEX35 gained 186.21 points, or 0.94%, to 19,969.11; and Italy’s FTSE MIB rose 684.47 points, or 1.31%, to 52,857.00.

[Asian Markets] The Nikkei 225 Index was up 0.32% and the Korea Composite Stock Price Index increased 1.62%.

[US Dollar Index] The US Dollar Index, which measures the dollar against six major currencies, fell 0.04% to close at 99.858 in late foreign exchange trading. As of the close in New York, 1 euro exchanged for $1.1533, up from $1.1514 the previous trading day; 1 British pound exchanged for $1.3452, up from $1.3431. 1 dollar was exchanged for 157.66 yen, up from 156.74 yen; 1 dollar exchanged for 0.8092 Swiss francs, down from 0.8101; 1 dollar exchanged for 1.4066 Canadian dollars, up from 1.4045; and 1 dollar exchanged for 9.5192 Swedish kronor, down from 9.5557.

[Cryptocurrencies] Bitcoin broke through $64,000; Ethereum was relatively stable, quoted at $1,870.19.

[Crude Oil] WTI for September delivery fell 5.7%, settling at $75.77 per barrel; Brent for October delivery declined 5.3%, settling at $79.36 per barrel. US Treasury Secretary Besant said on Tuesday that an agreement to reopen the Strait of Hormuz could be reached today or tomorrow.

[Precious Metals] Spot gold was quoted at $4,077.91; spot silver at $59.541.

[Macroeconomic News]

US Job Openings Decrease Slightly in June as Labor Demand Remains Stable. Job openings in the US fell slightly in June, indicating that overall demand for labor remained relatively stable as summer began. According to data released in the US on Tuesday, JOLTs job openings in June dropped to 7.36 million from a revised 7.54 million in May. The median market expectation was about 7.4 million job vacancies. The decrease was mainly due to declines in healthcare, leisure and hospitality, wholesale trade, and business services, with layoffs essentially unchanged. The report released Tuesday corroborates a steady labor market with limited layoffs. While some employers remain cautious about adding staff, resilient consumer spending continues to support hiring plans. Hiring activity accelerated, led by healthcare and construction industries. Leisure and hospitality hiring declined for the third consecutive month to its lowest since early 2025, contrary to expectations that the World Cup would boost labor demand.

Media: White House Not Planning to Publicly Disclose Details of Advanced AI Model Evaluation Framework. According to reports, three sources familiar with the matter said the White House does not plan to publicly release its new framework for evaluating advanced artificial intelligence models, limiting details to companies participating in the process. Businesses not involved, policymakers, researchers, and US allies will be unable to learn how the government plans to implement one of its key AI policies. On Tuesday, the White House held a staff-level meeting with industry representatives to discuss the recently completed framework. Companies not invited to the meeting remain unaware of the contents, and it is unclear which “trusted partners” will be granted early access to advanced models under the framework, or whether any foreign governments will qualify. Those familiar with the matter revealed that the meeting discussed open-source models, but no further details were disclosed. Nvidia (NVDA.O) employees participated in the meeting, sources added.

“Federal Reserve Mouthpiece”: Besant’s Policy Response Function Turns Less Dovish. "Federal Reserve mouthpiece" Nick Timiraos wrote that US Treasury Secretary Besant's policy response function has shifted to become less dovish. His remarks this year suggest that the Fed should continue to keep rates unchanged. Earlier this year, Besant cited models indicating that the Fed’s rate could range from more than 25 basis points above neutral to over 100 basis points higher. Today (August 4), he made two points. First, he defended Walsh’s decision not to articulate any policy response function last week: "I think every meeting should be open, and market participants should make their own judgments... I believe Walsh wants to keep his options open to achieve the best outcomes." Second, he did present a set of policy response functions that could be considered dovish, advocating for ignoring recent shocks: "What will rising short-term rates ultimately bring? We shall see." He posed the question but then responded by pointing out that underlying inflation is "very mild... very stable." "In core inflation, after excluding components greatly affected by energy, the rest has remained very stable. I think this situation will continue."

Wells Fargo: AI Investment Boom to Spill Over and Boost Traditional Industrial Stocks. Wells Fargo strategist Ohsung Kwon is optimistic that the increasing construction of data centers will benefit the industrial sector. He said that companies producing machinery, equipment, and tools for data center construction are now "among the stocks most closely related to the AI concept." According to Wells Fargo estimates, industrial activity expanded in July at the fastest rate in over four years, with non-AI-related capital expenditures up 10% year-on-year. Additionally, commercial and industrial loan growth has also accelerated. In recent months, traders have begun favoring so-called "traditional economy" sectors, pushing industrial stocks up 20% this year, second only to energy and information technology. Kwon estimates that about 40 new hyperscale data centers are under construction, with more than 100 in the planning stages, mainly concentrated in Texas, Georgia, Virginia, and Pennsylvania. "If the economic benefits from regions where data centers are already operational truly become a new trend, then we are at a very, very early stage of this spillover effect."

OPEC Oil Output Further Recovering in July, Three Major Gulf Countries Account for Almost All the Increase. According to media surveys, OPEC oil production further recovered some losses caused by conflict last month, with increased output from Kuwait, Saudi Arabia, and Iraq driving supply higher. The survey shows that OPEC member supply rose by 1.16 million barrels/day in July to an average of 19.44 million barrels/day, with the three major Gulf countries accounting for almost all the increase. The group's output remains well below pre-war levels. Iraq led the rise among OPEC members in July, adding 460,000 barrels/day to 2.3 million barrels/day. Tanker-tracking data shows Iraq’s crude loading rose 37% in July. Kuwait’s daily output increased by 360,000 barrels to 1.57 million barrels. Kuwaiti officials said this week the nation had restored production to the highest average levels since the start of the conflict. Saudi Arabia’s situation is more complex. The survey shows Saudi output increased by 390,000 barrels/day to 7.4 million barrels/day, but is still several million barrels below pre-conflict levels. Meanwhile, due to threats from Houthi rebels to Red Sea alternate shipping routes used by Saudi Arabia, its export volumes have declined.

US June Trade Deficit Narrows as Imports Fall for the First Time This Year. The US trade deficit narrowed in June as imports declined for the first time since the start of the year, with the decrease spanning several categories. Data released Tuesday by the Commerce Department showed the US goods and services deficit in June was $73.3 billion, down 5.6% from the previous month. Imports fell 1.8% while exports dropped 0.9%. The data shows that net exports continued to drag on economic growth this quarter. Ongoing tariff policy changes, supply chain disruptions from Middle East conflicts, and strong AI-related corporate investments have made US trade figures swing widely in recent months. Although the Supreme Court threw out many of the Trump administration’s import tariffs in Q1, the government is still seeking other ways to tax imports. From 2025 to early this year, heavy corporate investment in AI drove a substantial rise in imports of computers, peripherals, and related components. However, the latest trade report shows that imports of computers and semiconductors slowed in June. Wider capital goods imports, including related equipment, saw their first decline since September last year.

[Individual Stocks]

Apple Begins Preparations for September Launch Event, Retail Employees Can Enter Lottery to Participate On Site. According to renowned tech journalist Mark Gurman, as Apple (AAPL.US) gears up for its largest product launch event of the year, the company is now allowing US retail employees interested in working at the in-person event to enter a lottery for the chance to be selected. An internal memo shows that the drawing allows retail employees to apply to work on site, helping with guest lines, registration, welcoming attendees, providing directions, and supporting the security team. The company told employees the launch will be held in early September but did not provide a more specific date. Historically, Apple’s iPhone events are held on the second Tuesday or Wednesday of September. Since Labor Day falls on Monday, September 7, this year, holding the launch on Wednesday is slightly more likely. This year’s September event will be the first major product launch under CEO John Ternus, who will succeed Tim Cook as Apple's chief executive effective September 1.

Novo Nordisk Raises Earnings Guidance for Second Time This Year. Novo Nordisk (NVO.US) raised its earnings expectations for the second time this year, due to increased expectations for obesity and diabetes drug sales. Novo Nordisk indicated that adjusted operating profit for Q2 2026 would be 33.389 billion Danish kroner, and upgraded its full-year outlook. The largest expected drop in sales and profits this year is now 6%, compared with a previous forecast of up to 12% at constant exchange rates. Novo Nordisk is competing with Eli Lilly (LLY.N) in the obesity market. According to projections, this market could reach $120 billion annually by 2030.

[Major Brokerage Ratings]

BofA Global Research: Initiates coverage of SK Hynix (SKHY.US) with a “Buy” rating; target price $250.