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Scott Bessent Signals Imminent Deal to Reopen Strait of Hormuz as US Stocks Hit Record Highs

Treasury Secretary Scott Bessent indicated on Tuesday that a deal to reopen the Strait of Hormuz could be reached as early as today or tomorrow, potentially normalizing the conflict between the U.S. and Iran. This diplomatic progress contributed to a market rally where the S&P 500 and Dow Jones Industrial Average reached new record highs. The rally was bolstered by strong quarterly results from industrial giant Caterpillar and tech firm Palantir Technologies. Caterpillar reported revenue exceeding $20 billion for the first time, while Palantir Technologies saw its stock soar following what CEO Alex Karp described as "otherworldly" results driven by artificial intelligence demand. Oil prices declined following Scott Bessent's comments, with West Texas Intermediate futures dropping as investors anticipated easier movement for commercial ships. Meanwhile, the administration announced that it is drafting a ban on new imports of Chinese data center components, a move that bolstered shares of U.S. photonic firms. Economic data showed a slight decline in job openings in June, though hiring remained stable.

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