Today’s Market Recap：U.S. Stocks Rally for Third Straight Day, Amazon Tops $3 Trillion, Oil Plunges Over 7%

Tracking the Market Trend

TradingKey - Prospects for U.S.-Iran negotiations boosted market sentiment, and U.S. stocks got off to a strong start in August, with the three major indices closing higher for three consecutive days. The Dow Jones Industrial Average hit another record closing high, the Nasdaq rose more than 2%, and the S&P 500 approached its all-time closing high.

At the close, the Dow Jones Industrial Average rose 1.32% to 53,178.41; the Nasdaq Composite gained 2.13% to 25,913.90; and the S&P 500 climbed 1.48% to 7,600.50.

Among the “Big Seven Tech Companies,” only Apple (AAPL) closed lower, falling 9% over the two days following its earnings report; Meta(META)led the gains with a 6% rise, while Amazon (AMZN) rose 4.6%, with its market capitalization surpassing $3 trillion for the first time and gaining over 20% over the two days following its earnings report; SpaceX (SPCX) rebounded nearly 6% ahead of its earnings report. Palantir (PLTR) rose more than 10% in after-hours trading following its earnings report; Alibaba (BABA) closed up more than 4% in U.S. trading after unveiling its “Qianwen” large language model.

U.S. Treasury prices rebounded, with 10-year and 30-year yields pulling back from their highest levels in over a year and their highest levels since 2007, respectively. The U.S. Dollar Index edged higher after hitting new lows for three consecutive days; the yen rose more than 1% against the dollar during the session, hitting a nearly three-month high; Bitcoin surged to $64,000 during the session, up nearly 3% from its intraday low.

Expectations of U.S.-Iran negotiations weighed on crude oil, with prices falling more than 7% at one point during the session, and Brent crude closing at a three-week low. Gold’s rebound failed to gain traction, and it closed lower for the second consecutive day.

Market Headline

The U.S. ISM Manufacturing PMI for July rose beyond expectations to a four-year high, with demand, production, and employment all improving simultaneously. The July index jumped to 55.6, exceeding the forecast of 53.9 and the previous reading of 53.8, marking the highest level since May 2022 and marking seven consecutive months of expansion; production, new orders, and employment all strengthened. However, the S&P Global PMI remained at a three-month low, showing a clear divergence from the ISM.

Amazon has officially joined the $3 trillion market cap club. Following a 15% gain last Friday, the stock rose another 4.6% on Monday, pushing its market cap above $3 trillion for the first time and making it the fifth company in history to reach this milestone; the head of AWS stated that the company has signed five-year long-term contracts with customers and that demand far exceeds supply.

Palantir’s Q2 earnings far exceeded expectations, with U.S. commercial revenue surging 149%, prompting the company to raise its full-year revenue guidance. Total Q2 revenue rose 93% year-over-year, and EPS exceeded expectations by more than 20%; the revised full-year revenue guidance is nearly 6% higher than previous estimates, with U.S. commercial revenue projected to grow by at least 134% year-over-year; the stock rose more than 10% in after-hours trading following the earnings release.

According to media reports, the White House will convene a closed-door meeting this Tuesday with representatives from major AI companies—including OpenAI, Google, and Anthropic—to review a finalized voluntary regulatory framework. Under this framework, AI labs must submit their models to the government for safety reviews before releasing them to partners and the public. With only a few days remaining until the August 1 deadline set by the executive order issued in early June, time is of the essence. Sources familiar with the matter revealed that the meeting will be chaired by the U.S. National Cybersecurity Office and will focus on implementation plans for the framework as well as a yet-to-be-disclosed supporting measure.

The head of the Policy Office at the South Korean Presidential Office is facing criminal charges for hastily pushing for the listing of a single-stock leveraged ETF. Kim Yong-beom, the head of the Policy Office, was reported by a former Seoul City Council member for allegedly exceeding his authority to pressure regulators into forcing through a high-risk product, resulting in significant losses for investors. The charges include abuse of authority and coercion.

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