Expectation of US-Iran Negotiations Heats Up, US Stocks Start August with a Rally, Dow Hits Record High, Fiber Optic Communication Stocks Soar

August 4th, President Trump of the United States stated that the new negotiation proposal he made to Iran is the "last opportunity." He had previously called off a large-scale military strike against Iran, expressing his desire to leave room for a diplomatic solution. He mentioned that before taking further action, he is willing to give Iran another chance, and the relevant results will be clear within one to two days. Trump said that negotiations between the U.S. and Iran have begun, with the first phase discussing the reopening of the Strait of Hormuz and the second phase involving Iran's denuclearization.

Trump mentioned that the Strait of Hormuz could reopen as early as the next day and warned that if no agreement is reached between the two parties or if Iran does not "completely surrender," the U.S. blockade against Iran will continue. However, the Iranian Foreign Ministry denied engaging in negotiations with the U.S., stating that the current discussions with Oman are only temporary arrangements to secure the safe passage of ships and do not involve the full reopening of the Strait of Hormuz. In anticipation of the potential resumption of contact between the U.S. and Iran, Bitget data shows that Brent crude oil fell by nearly 6% on Monday.

According to BIT (bit.com) market data, U.S. stocks continued the rebound from last Thursday and Friday. The U.S. stock market closed on Monday with the Dow rising by 1.3% to a new closing high, the S&P 500 Index up by 1.48%, and the Nasdaq up by 2.1%. Technology stocks led the gains, with Microsoft (MSFT) and Google (GOOG) both rising by nearly 5%, Meta (META) up by 6%, and Amazon up by 4.6%, surpassing a market capitalization of $3 trillion for the first time.

Most semiconductor stocks rose, with Marvell Technology (MRVL) up by 3.33%, Nvidia (NVDA) up by 2.94%, Qualcomm (QCOM) up by 2.71%, Applied Materials (AMAT) up by 2.05%, AMD up by 1.75%, and ASML up by 0.82%.

Optical communication concept stocks all rose, with Applied Optoelectronics (AAOI) up by 16.88%, Coherent (COHR) up by 9.72%, Lumentum (LITE) up by 9.19%, Corning (GLW) up by 6.09%, Credo (CRDO) up by 5.47%, Ciena (CIEN) up by 3.64%, Astera Labs (ALAB) up by 3.12%.

The performance of the storage sector was mixed, with SanDisk (SNDK) up by 6.09% and Micron Technology (MU) up by 0.74%; Western Digital (WDC) down by 3.18%, Seagate Technology (STX) down by 2.89%, and Kioxia (SKHY) down by 0.72%.