U.S. stock markets closed higher on August 4, with technology shares leading the way and the Dow Jones Industrial Average reaching a record closing high. Among the top 20 most-traded stocks, Amazon.com hit a new all-time high, pushing its market capitalization above $3 trillion. Most popular Chinese concept stocks rose, with Alibaba gaining 4.11%, while Li Auto fell 3.74%.

In commodities, oil prices declined, zinc prices retreated, and gold edged slightly higher. European stocks tested new highs, with the consumer goods and retail sectors leading gains.

A key macro development saw conflicting statements from the U.S. and Iran. Trump described negotiations as a "last chance" for Tehran before a potential "decapitation strike," while also noting that talks with Iran are ongoing and would proceed in two phases. Separately, multiple U.S. states filed lawsuits against Trump's latest tariffs. The U.S. Treasury raised its quarterly borrowing estimate to $739 billion. Iran stated it would not allow any shipping lanes other than its own through the Strait of Hormuz.

In corporate news, the White House plans to convene major AI firms, including OpenAI and Anthropic, to discuss a framework for testing the safety of AI models. Southwest Airlines launched a new business travel product and booking options. "Spider-Man: Brand New Day" set a global box office record for CJ 4DPLEX. Visa acquired BioCatch for $2.4 billion to strengthen its AI-powered fraud prevention capabilities. Trump criticized Exxon Mobil and Chevron for experiencing soaring profits during the Iran conflict.

In currency markets, the yen stabilized during U.S. trading hours, following a sharp rally that again sparked speculation of intervention. On the oil front, prices fell as signals of potential U.S.-Iran talks eased supply concerns. The S&P 500 neared record highs, aided by the easing of U.S.-Iran tensions. Analysts at TD noted that intervention momentum could briefly push the USD/JPY pair to 153.

Egypt, Qatar, and Turkey issued a joint statement condemning Israeli violations in Gaza. U.S. Treasuries maintained their rally as Trump's delay in military action against Iran pushed oil prices lower. Iran stated that the U.S. must take the first step and change its behavior. A senior Iranian official declared that the U.S. would not be permitted to open non-Iranian shipping lanes in the Strait of Hormuz. Castle Securities predicted a massive $500 billion wave of debt financing in the semiconductor sector.