Trump Cancels Iran Attack Plan, US Stock Futures Rise, Oil Prices Plummet

August 3rd: President Trump of the United States announced the cancellation of the planned military strike against Iran and stated that negotiations between the two sides would resume on Monday. As a result, US stock futures rose on Monday, market risk appetite increased, and international oil prices plunged.

As of pre-market trading, Dow Jones Industrial Average futures rose by about 535 points, a 1% increase; S&P 500 Index futures rose by 0.6%, and Nasdaq 100 Index futures rose by 0.2%.

In the energy market, the expectation of easing tensions in the Middle East led to a rapid decline in oil prices. Brent crude oil fell by 5.2% to $83.39 per barrel; WTI crude oil futures fell by 6.2% to $79.45 per barrel.

US Treasury yields also fell in unison, with the 10-year Treasury yield dropping by 6 basis points to 4.68%. Investors believe that the easing of the conflict may reduce the inflationary pressure brought about by rising energy prices.

However, market institutions remind investors to remain cautious. Adam Crisafulli, the founder of Vital Knowledge, stated that similar diplomatic turning points have occurred before, and there is still uncertainty about the ultimate resolution of the conflict.

This week, the market will focus on US employment data, with the release of the July non-farm payroll report on Friday. FactSet estimates that the US added approximately 87,500 non-farm jobs in July, up from 57,000 in June, and the unemployment rate is expected to rise from 4.2% to 4.3%.