S&P 500 closes in on a record as Iran relief rally lifts Wall Street

Wall Street surged on Monday as news of renewed US-Iran diplomatic talks sent oil prices tumbling and pushed equities close to record territory.

Equities surge on Iran de-escalation

The S&P 500 gained 1.6%, bringing it about 0.3% away from the all-time high it reached in early June. The Nasdaq Composite advanced 2.3%. The Dow Jones Industrial Average added more than 500 points on the day, with the communications services and technology sectors driving the market's advance.

The catalyst was clear. Oil prices fell sharply after President Donald Trump called off what he described as "massive" planned strikes against Iran and announced new diplomatic talks. West Texas Intermediate crude fell 6.21% to $79.41 per barrel, while Brent crude declined 5.11% to $83.24 per barrel. Trump said aboard Air Force One that new talks with Iran would begin Monday.

The relief rally reflects how deeply the Iran conflict has weighed on markets in 2026. The current crisis traces its roots to late February, when US and allied strikes on Iranian military and nuclear infrastructure triggered a severe response from Tehran, including a functional blockade of the Strait of Hormuz, through which approximately 20% to 30% of the world's seaborne crude oil and liquefied natural gas passes daily. That supply shock drove Brent crude to well above $100 a barrel and stoked inflation fears across global markets for months.

Bitcoin sits out the rally

Crypto markets offered a stark contrast. Bitcoin opened at $63,497.25 on Monday, August 3, just 1.2% higher than Sunday's opening price. The token struggled to build on even that modest gain. Opening prices rebounded from lower levels over the weekend but then reversed in early trading, with crypto prices failing to gain any meaningful momentum following Trump's announcement that the US had paused planned airstrikes against Iran.

Geopolitical tensions remain a key headwind for crypto investors, but security issues and stalling legislation are also limiting prices from making a more meaningful recovery. Bitcoin has shed roughly half its value from a $126,000 peak and continues to trade near $63,000, with underwater buyers capping every rally near $65,500.

The divergence between equities and $BTC on Monday underlines a pattern that has persisted for much of 2026: traditional risk assets have been quicker to price in geopolitical relief, while crypto has struggled to reclaim the highs set before the Iran conflict began.

Sources:
CNBC: Dow rallies toward record close on Big Tech gains and lower oil
TheStreet: Stock Market Today, August 3, 2026
Yahoo Finance: Bitcoin and Ethereum prices, August 3, 2026