Stocks and Treasuries Rebound as Easing US-Iran Tensions Push Oil Lower
US stocks and Treasuries rallied on August 3 as easing US-Iran tensions drove oil lower and reduced inflation fears, with megacap technology shares and corporate earnings adding support.
MSA market desk
Desk brief
US equities and government bonds advanced on Monday, August 3, 2026, as signs of reduced tension between Washington and Tehran lowered oil prices and eased immediate inflation concerns. The S&P 500 gained about 1%, while Treasury yields declined after a volatile previous week. ([apnews.com](https://apnews.com/article/d19a8f9a77b6fceca41da3e4b6bf17aa?utm_source=openai))
The decline in crude prices improved risk appetite by reducing pressure on fuel costs and the broader inflation outlook. Strong corporate earnings also supported equities, with large technology companies leading the advance. Amazon’s market value surpassed $3 trillion as the megacap technology group rose sharply. ([apnews.com](https://apnews.com/article/d19a8f9a77b6fceca41da3e4b6bf17aa?utm_source=openai))
The market response remains sensitive to developments around the conflict and energy-shipping routes. A renewed escalation could quickly reverse the move through higher oil prices, rising inflation expectations and renewed selling in bonds.
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