Nasdaq Gains 0.94%, Dow Surges 600 Points as Oil Plunges on US-Iran Truce
Authored By HDFC SKY | Last Modified: Jul 27, 2026 08:31 PM IST
Mumbai, July 27: US stock markets opened sharply higher on Monday as a weekend pause in military hostilities between the United States and Iran triggered a dramatic sell-off in crude oil prices and revived hopes for diplomatic negotiations. The Nasdaq Composite rose 235.93 points, or 0.94%, to 25,211.75, while the Dow Jones Industrial Average surged approximately 600 points, or 1.17%, to 52,557.41, and the S&P 500 climbed 58.78 points, or 0.79%, to 7,470.76.
The rally extended across European and Asian markets, with the Stoxx 600 gaining 0.7%, Japan’s Nikkei 225 adding 0.5% to 64,931.19, and Hong Kong’s Hang Seng Index rising over 1%. The 10-year Treasury yield fell 4 basis points to 4.63%, while the 30-year yield declined to 5.12% as safe-haven demand eased.
Oil Plunges 12.5% to USD 84.65 on US-Iran Truce Hopes
International benchmark Brent crude futures fell as much as 12.5% to an intraday low of USD 84.65 a barrel, their lowest level since 17 July, before recovering slightly to trade around USD 90.85 a barrel, down 6.1%, in early US trading. US West Texas Intermediate crude futures dropped 5.8% to USD 84.16 a barrel.
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The sharp pullback followed a Reuters report that Iran would suspend military attacks as long as the United States maintained its own pause, which came after 13 consecutive nights of US strikes. The US reportedly halted its bombing campaign on Friday without explanation, with President Donald Trump’s advisers warning that the military was running out of viable targets and raising concerns about depleting weapons stockpiles.
The development rekindled expectations of renewed negotiations on an interim ceasefire agreement, which had been derailed by the recent escalation. However, tensions elsewhere mounted after Ukraine struck an Iranian commercial vessel in the Caspian Sea, prompting Tehran to accuse Kyiv of a hostile and criminal act.
Dow Rallies 608 Points, Nasdaq Opens at 25,236.19 on Risk-On Sentiment
The Dow Jones Industrial Average opened at 52,173.42 and touched an intraday high of 52,607.78, while the Nasdaq Composite opened at 25,236.19 and traded within a range of 25,162.78 to 25,261.91 on volume of 1.03 billion shares. The S&P 500 opened at 7,464.20 and reached a high of 7,480.57, with trading volume of 188 million shares recorded in the opening session.
All three major indices came off back-to-back weekly losses, with the Nasdaq down 8% from its record high and the Philadelphia SE Semiconductor Index confirming bear market territory since late June. The rally was broad-based, with financials and consumer discretionary sectors leading gains, while energy stocks bucked the trend amid the collapse in oil prices.
Tech Giants Gain as Microsoft Jumps 2.48%, Nvidia Up on OpenAI Deal
Technology stocks powered the Nasdaq’s recovery, with Microsoft (MSFT) surging 2.48% to lead gains among the Magnificent Seven. Alphabet (GOOGL) advanced 2.75%, Meta Platforms (META) rose 1.86%, Amazon (AMZN) gained 1.34%, and Apple (AAPL) added 0.68% in early trading.
Nvidia (NVDA) traded fractionally higher following a Wall Street Journal report that the chipmaker is in talks to provide approximately USD 250 billion in financing guarantees for OpenAI as part of a massive 10-gigawatt data center project that SoftBank’s energy subsidiary is developing in southern Ohio. The backstop would help OpenAI lease the site, with power controlled by the US government and funded separately by Japan under a recent trade deal.
Tesla (TSLA) rose 1.04%, while Netflix (NFLX) added 0.26%. Among semiconductor stocks, Intel (INTC) gained 2.07%, Broadcom (AVGO) rose 1.33%, and Qualcomm (QCOM) advanced 1.62%, though ASML Holding (ASML) declined 3.87% to USD 1,689.08 and Lam Research (LRCX) fell 1.33%, reflecting lingering concerns over AI infrastructure spending.
Energy Stocks Sink 2-4% as Crude Collapses; Baker Hughes Gains
The sharp decline in oil prices weighed heavily on energy shares, making the sector the biggest loser despite the broader market rally. Chevron (CVX) dropped 1.57% on the Dow, while Exxon Mobil (XOM) fell approximately 2.5%, ConocoPhillips (COP) declined 1.82%, and Occidental Petroleum (OXY) lost 2.43% in early trading. In European markets, TotalEnergies fell 4.5%, BP shed 3.4%, and Shell declined 1.5%.
However, Baker Hughes (BKR) bucked the trend, rising 8.24% to USD 61.97, making it one of the top gainers after the oilfield services company reported quarterly results that beat expectations. Diamondback Energy (FANG) and Space Exploration Technologies (SPCX) each fell approximately 2% in early Nasdaq-100 trading, while Marathon Petroleum (MPC) and Valero Energy (VLO) also recorded losses amid the oil price rout.
Top Gainers: Bitmine +13.5%, Rigetti +12.1%, IonQ +11.6% Lead Rally
Risk-on sentiment drove outsized gains across speculative and growth stocks in early trading. Among the top performers, Bitmine Immersion Technologies (BMNR) surged 13.50% to USD 17.95 on volume of 8.57 million shares, while Rigetti Computing (RGTI) jumped 12.08% to USD 15.86 and IonQ (IONQ) advanced 11.61% to USD 36.64. Infleqtion (INFQ) rose 10.24% to USD 9.90, and York Space Systems (YSS) climbed 10.37% to USD 18.81, while Mobileye Global (MBLY) gained 8.14% to USD 8.71.
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RingCentral (RNG) advanced 7.94% to USD 52.20, Quantinuum (QNT) added 6.51% to USD 55.69, and USA Rare Earth (USAR) rose 7.49% to USD 15.21. Figure Technology Solutions (FIGR) gained 6.94% to USD 29.51, while Wayfair (W) jumped 6.36% to USD 89.51. Among Nasdaq-100 stocks, Shopify (SHOP) surged 6.50% and Workday (WDAY) gained over 4%, making them some of the best performers in the index.
Top Losers: Legend Biotech -15.2%, Cerebras -3.6%, ASML -3.9% Buck Trend
Despite the broad-based rally, several stocks faced significant selling pressure in early trading. Legend Biotech Corporation (LEGN) plunged 15.23% to USD 18.83 on volume of 1.36 million shares, making it the biggest loser of the session. Cerebras Systems (CBRS) declined 3.58% to USD 191.99, while Acadia Healthcare Company (ACHC) lost 4.64% to USD 32.91 and CF Industries Holdings (CF) fell 4.21% to USD 119.91.
Huntsman Corporation (HUN) dropped 4.26% to USD 12.26, while Corcept Therapeutics (CORT) declined 3.38% to USD 92.14 and SM Energy Company (SM) fell 3.54% to USD 32.01. Dow Inc. (DOW) declined 3.03% to USD 28.94, while Equinor ASA (EQNR) dropped 3.04% to USD 39.13 and Petróleo Brasileiro (PBR) fell 2.97% to USD 18.21. Methanex Corporation (MEOH) lost 2.77% to USD 54.31 and Cenovus Energy (CVE) declined 2.78% to USD 28.47.
The losses were concentrated in healthcare, energy, and materials stocks, reflecting sector-specific headwinds despite the overall positive market sentiment.
AstraZeneca Posts 6% Revenue Growth to USD 15.4 Billion, Maintains Outlook
AstraZeneca (AZN) shares rose 1.5% in early trading after the UK-based pharmaceutical company reported higher second-quarter revenue and maintained its forecast for the year. The drugmaker posted revenue of USD 15.4 billion in the second quarter, up 6% year-on-year, driven by double-digit growth in its oncology portfolio.
The company’s blockbuster oral cancer drug Tagrisso brought in USD 1.9 billion in the quarter, while Farxiga, a medicine for cardiometabolic diseases, generated USD 1.8 billion in sales, though this represented a 16% decline year-on-year as the drug lost its primary US patent exclusivity in April 2026.
AstraZeneca reiterated its full-year outlook of revenue growth in the mid-to-high single digits and core earnings per share growth in the low double digits. Earlier this month, Citi analysts called AstraZeneca the “best pipeline and best growth in the sector,” with multiple late-stage clinical trial readouts still expected this year.
US Core Capital Goods Orders Rise 0.9% in June, Pointing to Solid Q2 Growth
New orders for key US-manufactured capital goods increased strongly in June, pointing to a fairly solid pace of economic growth in the second quarter. Non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending, rose 0.9% last month after an upwardly revised 1.9% increase in May, according to the Commerce Department’s Census Bureau.
The durable goods orders report showed total orders rose just 0.3% for the month, easing from a 4% surge in May and well below the Dow Jones consensus estimate of 2.1%. Computers and electronic products helped boost the total with a 3.1% increase, while transportation equipment tumbled 13.5%. The data comes ahead of Thursday’s second-quarter GDP growth estimate, which is expected to provide further clarity on the health of the US economy as the Federal Reserve weighs its monetary policy options.
Nvidia in Talks to Guarantee USD 250 Billion Financing for OpenAI Data Center
Nvidia (NVDA) shares opened fractionally higher following a Wall Street Journal report that the AI chipmaking giant is in talks to provide roughly USD 250 billion in financing guarantees for OpenAI as part of a massive data center project. The backstop from Nvidia would help the ChatGPT maker lease a 10-gigawatt project that SoftBank’s energy subsidiary is developing in southern Ohio, according to the newspaper, citing people familiar with the matter.
The power for the project is controlled by the US government and funded separately by Japan under a recent trade deal, with US Commerce Secretary Howard Lutnick involved in deciding who will receive access to it.
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Such a deal would serve as the latest example of circular financing in the AI sector, where chipmakers and their customers are involved in increasingly complex deals to support each other financially, sparking concern among investors worried about an AI bubble.
Federal Reserve Meeting, Megacap Earnings, GDP Data Set for Pivotal Week
The current week presents multiple potential catalysts for market direction, with the Federal Reserve’s two-day policy meeting concluding on Wednesday, followed by Thursday’s second-quarter GDP estimate and the June update for the Fed’s primary inflation gauge, the core personal consumption expenditures price index. The Street broadly expects the central bank to keep interest rates unchanged, though markets are pricing in a meaningful possibility of a quarter-point rate hike this week.
According to the CME FedWatch Tool, traders are pricing in a 32% likelihood of a Federal Reserve rate hike at its meeting this week, up from about 16% one week ago, and a 77% chance of at least a quarter-percentage-point rate hike at its September meeting, up from 64% a week ago. The week will also feature quarterly results from Microsoft, Meta Platforms, Apple, and Amazon, with investors watching for clues on whether AI infrastructure spending is moderating or holding firm.
Gold Rallies 1.39% to USD 4,108.91, Silver Gains 2.76% on Weaker Dollar
Precious metals traded higher on Monday as the US dollar fell and Treasury yields dropped, with investors seeking alternative assets amid geopolitical uncertainty. Spot silver traded 2.76% higher at USD 59.77 per ounce, while spot gold advanced 1.39% to USD 4,108.91 per ounce.
The rally in precious metals came despite a stronger risk-on sentiment in broader markets, reflecting continued uncertainty about the durability of the US-Iran pause and the upcoming Federal Reserve decision.
State Street Investment Management noted in a commentary that while the ride may be bumpier versus 2024-2025, the gold bull cycle still has legs, with a hawkish Fed pivot unlikely to change the structural post-Covid dynamic for gold. The US dollar index ticked lower to 101.42, providing additional support for dollar-denominated commodities.
Naver Jumps 12% on USD 1 Billion Nvidia Partnership, Expanding AI Infrastructure
Shares of South Korean internet giant Naver jumped over 12% in early Monday trading after the company announced a 1.48 trillion won (USD 1 billion) new share issuance to Nvidia as part of a strategic partnership. Nvidia also announced a partnership with Naver and Canada’s Brookfield to expand South Korea’s national AI factory infrastructure, alongside its investment into Naver.
The deal highlights the growing global competition to secure AI infrastructure and the increasing involvement of major technology companies in financing and developing large-scale AI projects. The partnership comes as South Korea seeks to bolster its position in the global AI race, with the government having previously announced plans to invest significantly in semiconductor and AI development.
Markets opened higher as easing US-Iran tensions reduced geopolitical risk, while falling oil prices helped ease inflation concerns. Investors now await the Federal Reserve’s decision, key earnings, and upcoming GDP and inflation data for further direction. Defence, energy, and semiconductor stocks may remain volatile as geopolitical and macroeconomic developments continue to evolve.
Source
- spglobal.com/spdji/en/indices/equity/sp-500/
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