Stocks, Bonds Rise as Oil Drop Eases Inflation Fears – US Market Wrap

Stocks and bonds advanced as easing Middle East tensions drove oil lower, reducing inflation concerns. The rebound in risk appetite pushed the S&P 500 up 1.5% to near record highs, while megacaps posted their strongest session since March as Amazon’s market value topped $3 trillion. US crude settled around $80, and Treasury yields declined following last week’s sharp volatility.

Iran signaled progress in talks to restore shipping flows through the Strait of Hormuz after President Donald Trump called off what he described as a major strike. He said discussions are focused on reopening the strait quickly, with denuclearization talks forming a second phase.

Ahead of a run of labor market data, US manufacturing expanded in July at the fastest pace in over four years, supported by strong demand, rising output, and increased hiring.

Separately, Palantir raised its full-year sales and profit outlook after reporting second-quarter results that beat estimates.