On Monday, 3 August 2026, major US stock indexes reached new record highs. The Dow Jones Industrial Average rose by more than 700 points in one day, and the S&P 500 also closed at its highest level in two months. This rise happened after a recent period of big changes in stock prices, especially for technology companies.

The main reason for this increase was a change in US foreign policy. The US government decided to use diplomacy instead of military action in its conflict with Iran. Investors believed this decision would make the important Strait of Hormuz safer for oil shipments.

As a result, the prices of oil started to fall, and interest rates dropped to around 4.63%. This made borrowing cheaper and gave the US economy and companies a positive outlook in the short term.