{"id":65941,"date":"2026-08-04T09:38:12","date_gmt":"2026-08-04T13:38:12","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-rally-ignites-as-hormuz-reopening-nears-oil-prices-retreat\/65941\/"},"modified":"2026-08-04T09:38:12","modified_gmt":"2026-08-04T13:38:12","slug":"market-rally-ignites-as-hormuz-reopening-nears-oil-prices-retreat","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-rally-ignites-as-hormuz-reopening-nears-oil-prices-retreat\/65941\/","title":{"rendered":"Market Rally Ignites as Hormuz Reopening Nears; Oil Prices Retreat"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>U.S. equities surged at the open<\/strong>, with the <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/dowjones\/today\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> Industrial Average<\/strong> (<a href=\"\/stock\/DJI\">DJI<\/a>) climbing <strong>758.20 points (1.43%)<\/strong> to <strong>53,936.61<\/strong>, fueled by optimism over a potential diplomatic breakthrough in the Middle East.<\/li>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">Oil prices<\/a> tumbled<\/strong> as Treasury Secretary <strong>Scott Bessent<\/strong> announced that a deal to fully reopen the <strong>Strait of Hormuz<\/strong> could be reached &quot;today or tomorrow,&quot; sending <strong>Brent crude<\/strong> toward the <strong>$80\/bbl<\/strong> mark.<\/li>\n<li><strong>Ford Motor Co.<\/strong> (<a href=\"\/stock\/F\">F<\/a>) reported July U.S. sales of <strong>169,951 units<\/strong>, with electrified vehicle sales reaching <strong>16,151 units<\/strong>, as the automaker continues to pivot its strategy toward high-margin hybrids and tactical defense contracts.<\/li>\n<li><strong>Geopolitical tensions remain elevated<\/strong> as <strong>China<\/strong> formally opposed <strong>Japan\u2019s<\/strong> latest defense report, while the U.S. proposed new tariffs on industrial machinery, including <strong>welding machines<\/strong> and <strong>cranes<\/strong>.<\/li>\n<\/ul>\n<h2>Market Open: Indices Hit New Heights<\/h2>\n<p>Wall Street opened sharply higher on Tuesday, extending a rally driven by easing energy costs and robust corporate earnings. The <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a><\/strong> (<a href=\"\/stock\/SPX\">SPX<\/a>) rose <strong>39.04 points (0.51%)<\/strong> to <strong>7,639.54<\/strong>, while the tech-heavy <strong>Nasdaq<\/strong> (<a href=\"\/stock\/IXIC\">IXIC<\/a>) gained <strong>211.11 points (0.82%)<\/strong> to reach <strong>26,125.01<\/strong>. <em>Investors appear to be shifting focus from geopolitical risk to bottom-up fundamentals<\/em>, as roughly 85% of S&amp;P 500 companies have exceeded profit estimates this season.<\/p>\n<h2>Energy: Hormuz Breakthrough Pressures Crude<\/h2>\n<p>Energy markets experienced a significant sell-off following reports that the <strong>Strait of Hormuz<\/strong>\u2014a critical chokepoint for 20% of global oil supply\u2014could reopen within 24 to 48 hours. <strong>Treasury Secretary Scott Bessent<\/strong> told <strong>CNBC<\/strong> that &quot;communications are underway at full tilt,&quot; suggesting a deal would restore &quot;freedom of movement&quot; without Iranian tolls. <strong>Brent crude<\/strong> futures fell over <strong>4%<\/strong> intraday, trading near <strong>$80.66<\/strong>, as the prospect of hundreds of stranded tankers finally moving out of the Gulf eased supply scarcity fears.<\/p>\n<h2>Automotive: Ford Sales and Strategy Shift<\/h2>\n<p>Ford Motor Co. (<a href=\"\/stock\/F\">F<\/a>) released its July sales data, highlighting a total of <strong>169,951 vehicles<\/strong> sold in the U.S. market. While the company has faced a volatile year for pure electric vehicles, its <strong>electrified segment<\/strong> (including hybrids) remains a bright spot with <strong>16,151 units<\/strong> sold last month. <em>The automaker is increasingly leaning into its &quot;Ford Pro&quot; commercial business and new defense prototypes<\/em> to offset a <strong>$3.6 billion<\/strong> special-item charge related to its EV manufacturing rationalization.<\/p>\n<h2>Trade and Diplomacy: New Friction Points<\/h2>\n<p>The <strong>U.S. Trade Representative<\/strong> suggested new tariffs on specific industrial products, including <strong>welding machines and cranes<\/strong>, as part of a broader &quot;America First&quot; trade agenda. Simultaneously, <strong>China\u2019s Ministry of Defense<\/strong> issued a stern rebuke of <strong>Japan\u2019s<\/strong> annual defense white paper, which characterized Beijing as Tokyo&#39;s &quot;top security challenge.&quot; These developments indicate that while Middle Eastern tensions may be cooling, <em>the structural rivalry between major Pacific powers continues to shape global trade policy<\/em>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways U.S. equities surged at the open, with the Dow Jones Industrial Average (DJI) climbing 758.20 points (1.43%) to 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