Wall Street set a positive tone for the start of August as signs of easing U.S.-Iran tensions drove crude prices down and lifted stock futures, while investors braced for an upcoming slate of corporate earnings and economic releases. S&P futures gained 0.6% and Nasdaq futures rose 0.4% in pre-market trading, while European shares advanced, led by Germany’s DAX reaching an intraday record high. Oil prices tumbled, with Brent crude dropping over 5% to $83.52 per barrel after U.S. President Donald Trump called off a planned strike on Iran to pursue negotiations aimed at reopening the Strait of Hormuz. Broad equity sentiment remained supported by solid earnings beat rates, as well as news of potential healthcare consolidation involving preliminary merger discussions between Bristol Myers Squibb and AstraZeneca.
In currency and global markets, the Japanese yen rallied to a three-month high near 155.2 per U.S. dollar following confirmation of a rare joint intervention by Japanese and U.S. authorities. The coordinated action—backed by statements from U.S. Treasury Secretary Scott Bessent regarding dollar liquidity facilities—provided significant support to the yen, which had recently hovered near 40-year lows. Meanwhile, Asian equity markets had a rocky start to the month, dragged down by heavy losses in South Korea and Japan amid ongoing investor skepticism surrounding massive AI capital expenditures. The drop in oil prices also helped cool sovereign debt markets, pushing 30-year U.S. Treasury yields down to around 5.22% after a sharp surge in July.
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