Daily Market Update: 04 August 2026

Trump halts Iran strikes, sending oil lower and lifting the ASX

The Australian sharemarket ended higher on Monday after starting the session in the red, as US President Donald Trump halted plans for further strikes against Iran, sending oil tumbling. The S&P/ASX 200 closed up 42.5 points to 9,019.3. Nine of 11 sectors advanced. Sentiment turned after Trump called off the planned strikes, stoking hopes for a deal that would reopen the Strait of Hormuz. The index also benefited from its limited exposure to artificial intelligence as another wave of selling hit Asian chipmakers, sending South Korea’s Kospi index down more than 5 per cent.

Utilities lead the gains as energy stocks track oil lower

Utilities was the best-performing sector, up 2.1 per cent, led by a 2.9 per cent surge in Origin Energy Limited (ASX: ORG) to $11.07 as shares continued to recover from a data breach last month. Energy stocks fell as oil eased, with Woodside Energy Group Ltd (ASX: WDS) down 1.4 per cent to $32.50 and Santos Limited (ASX: STO) off 1.9 per cent to $7.69, dragging the sector 1.2 per cent lower. DroneShield Limited (ASX: DRO) was the biggest mover on the benchmark, gaining 7 per cent to $1.81 on a late flurry of buying. In corporate news, Steadfast Group Limited (ASX: SDF) climbed 2.9 per cent to $5.26 after a KKR-led consortium confirmed it was proceeding with its takeover offer following due diligence, while FleetPartners Group Ltd (ASX: FPR) surged 17.3 per cent to $3.32 after SG Fleet Group Limited (ASX: SGF) lodged a $770 million takeover bid. Fortescue Ltd (ASX: FMG) extended losses, down 3.9 per cent as iron ore futures fell 2.3 per cent to US$93.70 in Singapore, and Rio Tinto Limited (ASX: RIO) eased 0.6 per cent to $169.50.

Wall Street rallies as easing tensions lift megacap tech

US stock indices closed higher on Monday, supported by a rebound in Treasuries. The S&P 500 rose 1.5 per cent, nearing its record high, the Dow Jones Industrial Average added 693 points to a record 53,178, and the Nasdaq 100 gained 1.8 per cent. With the US refraining from striking Iran over the weekend and fuel prices pulling back, yields fell across the curve as markets reassessed inflation risks, while Tehran signalled progress on talks to restore shipping through the Strait of Hormuz. Megacap technology led the advance, with Amazon.com Inc (NASDAQ: AMZN) up 4.6 per cent as it surpassed a US$3 trillion market value, alongside gains in Alphabet Inc (NASDAQ: GOOGL) (up 4.9 per cent), Microsoft Corporation (NASDAQ: MSFT) (up 4.9 per cent) and Meta Platforms Inc (NASDAQ: META) (up 6 per cent). Chipmakers also rallied, with NVIDIA Corporation (NASDAQ: NVDA) up 2.9 per cent, Advanced Micro Devices Inc (NASDAQ: AMD) up 1.8 per cent and Sandisk Corporation (NASDAQ: SNDK) up 6 per cent.