![\"US](\"https:\/\/static.toiimg.com\/thumb\/msid-132834427,imgsize-824327,width-400,height-225,resizemode-4\/us-stocks.jpg\" "\\"Oil")
<\/div>\n<\/div>\n<\/div>\nUS stock market today:The S&P 500 gained 1%, extending its recovery after a turbulent July marked by sharp swings. The Dow Jones Industrial Average had advanced 624 points, or 1.2%, while the Nasdaq Composite was up over 1% as oil prices dropped and hopes of a US-Iran deal lifted market sentiment.Oil prices declined on Monday, providing relief to Wall Street by easing concerns that inflationary pressures could intensify further. The softer crude prices lifted US equities, although financial markets continued to witness significant volatility, according to an AP report.The biggest move came from the oil market, where Brent crude fell 4.9% to $83.65 per barrel. Prices retreated after President Donald Trump said over the weekend that he had decided against authorising fresh US military strikes on Iran following appeals from regional allies.Last month, Brent crude fluctuated sharply between $72 and $102 a barrel as sentiment shifted repeatedly over the prospects of oil tankers resuming unrestricted movement through the Persian Gulf following the Iran conflict.Trump’s latest decision on Iran helped ease fears of a renewed surge in inflation. As a result, Treasury yields also moved lower, reflecting reduced inflation expectations in the bond market.The yield on the benchmark 10-year US Treasury note declined to 4.68% from 4.75% at Friday’s close. Even so, it remained well above the 3.97% level seen before the outbreak of the Iran conflict.The sharp rise in bond yields since then has raised concerns for financial markets, as higher borrowing costs can weigh on stock valuations and slow economic activity by making loans more expensive for households and businesses. The average long-term mortgage rate in the US has already climbed to its highest level in a year.The retreat in crude oil prices lifted shares of companies with significant fuel expenses. United Airlines gained 5.6%, American Airlines advanced 5.7%, and Norwegian Cruise Line Holdings rose 5.4%.In contrast, semiconductor stocks remained under pressure as investors continued to question whether the rapid revenue growth fuelled by the artificial intelligence boom can be sustained over the longer term.If AI fails to deliver the expected gains in profitability and productivity, major technology companies could scale back their heavy investments in data centres, a key driver behind the sharp rally in chip stocks.Micron Technology fell 4.9%, making it one of the biggest drags on the S&P 500, although its shares were still up more than 170% for the year. Advanced Micro Devices (AMD) declined 2.7%, reducing its year-to-date gain to 116%.South Korea continued to witness some of the sharpest swings in AI-related stocks, largely because the Kospi index is heavily weighted towards Samsung Electronics and SK Hynix.Seoul’s Kospi index dropped 5.1%, following Friday’s record-breaking 17.9% rally, its strongest single-day gain ever.Elsewhere in Asia, Japan’s Nikkei 225 slipped 0.9% after the United States and Japan confirmed coordinated action to support the Japanese yen against the US dollar. While a stronger yen can help ease inflationary pressures in Japan, it may also reduce the competitiveness of the country’s exporters.<\/div>\n