Stock Market Today: Stocks Rally, Oil Slides on Return to Mideast Diplomacy -- WSJ

Investors are welcoming President Trump's latest pivot back to diplomacy.

Stocks are rallying and international oil prices are about 5% lower on hopes that an agreement to finally reopen the Strait of Hormuz could be reached. Trump said yesterday that the U.S. would engage in talks starting later today.

His shift from threats to dialogue-a familiar pattern that hasn't yielded much progress so far-was enough to start August trading on a brighter note after a volatile July. The Dow has jumped around 500 points, with Nasdaq up 2% and bond yields slipping.

Over in Asia, the yen has strengthened modestly against the dollar after the U.S. and Japan jointly acted to prop the currency, which hit a 40-year low late last month.

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August 03, 2026 12:36 ET (16:36 GMT)