The US stock market surged to new record highs on August 4, 2026, driven by strong corporate earnings and a significant decline in oil prices amid talks on reopening the Strait of Hormuz. [1, 2, 3]
The S&P 500 closed at an all-time high of 7,736.52, gaining 1.8% for the day. The Dow Jones Industrial Average jumped 907 points, or 1.7%, to approximately 54,085, while the Nasdaq Composite rose 2.6% to 26,584.99, led by strong technology sector earnings. [1, 3]
Shares of Palantir Technologies surged about 29.4-29.5% after the company reported a 93% increase in quarterly revenue and raised its 2026 revenue forecast. Palantir CEO Alex Karp described the results as "otherworldly." [1, 3] Caterpillar’s shares also advanced 5.4-5.6% after posting quarterly sales over $20 billion for the first time, supported by strong demand linked to artificial intelligence, according to company commentary. [1, 3]
Oil prices dropped sharply on the same day. Brent crude fell roughly 5.3-6.0% to around $79 per barrel, while West Texas Intermediate (WTI) crude decreased by about 6.4% to $75.20. The price decline followed reports that the US and Iran might soon reach an agreement to reopen the Strait of Hormuz, a key oil shipping route. [1, 2, 3]
US Treasury Secretary Scott Bessent said, "There is a chance we may have a deal today or tomorrow to open the strait and move towards a more normalized position in this conflict," which bolstered market sentiment. [2, 3] Paul Hickey, co-founder of Bespoke Investment Group, said the rally was driven by "a succession of events" providing multiple positive catalysts. [2] However, strategist Larry Tentarelli cautioned that if the headlines take a negative turn, market volatility could increase. [2]
On August 5, the Dow extended gains by adding 263 points (0.49%) to close at another record level of 54,349.12. Meanwhile, the S&P 500 and Nasdaq both slipped slightly due to weakness in major technology stocks, including AMD and Alphabet. [4]
Nvidia shares rose about 3.4% after SpaceX CEO Elon Musk announced the company would use Nvidia processors exclusively for its AI computing needs. However, SpaceX shares declined 13.6% following a report of $18.4 billion in Q2 capital expenditures. [4]
Investors will watch for progress on the US-Iran talks this week, as Treasury Secretary Bessent indicated a possible deal could come by Tuesday or Wednesday to reopen the Strait of Hormuz and ease geopolitical risks to energy supplies. [2, 3]
