According to BlockBeats, on August 3, U.S. President Trump announced the cancellation of the previously planned military strike against Iran and stated that negotiations between both sides would resume on Monday. Following this, U.S. stock futures rose on Monday, market risk appetite improved, and international oil prices dropped significantly.
Ahead of market open, Dow Jones Industrial Average futures rose approximately 535 points, or 1%; S&P 500 futures increased 0.6%, and Nasdaq 100 futures rose 0.2%.
In the energy market, expectations of de-escalation in the Middle East drove oil prices sharply lower. Brent crude fell 5.2% to $83.39 per barrel, while WTI crude futures dropped 6.2% to $79.45 per barrel.
U.S. Treasury yields declined in tandem, with the 10-year yield falling 6 basis points to 4.68%. Investors believe that easing tensions may reduce inflationary pressures from rising energy prices.
However, market analysts caution that investors should remain cautious. Adam Crisafulli, founder of Vital Knowledge, noted that similar diplomatic breakthroughs have occurred in the past, and uncertainty remains regarding the ultimate resolution of the conflict.
This week, the market will focus on U.S. employment data, with the July non-farm payrolls report due on Friday. FactSet expects approximately 87,500 new non-farm jobs in July, up from 57,000 in June, with the unemployment rate forecast to rise from 4.2% to 4.3%.