NEW YORK, August 3, 2026, 17:57 EDT — The U.S. cash markets have finished trading for the day.
- The Dow climbed 1.32% to an all-time high. The S&P 500 increased 1.48%, and the Nasdaq advanced 2.13%.
- Brent crude declined by 4.7%, while the yield on the 10-year Treasury slipped 6.1 basis points.
- Initial estimates indicate that four megacap companies gained approximately $537 billion in market capitalization.
U.S. equities jumped on Monday, helped by a drop in oil prices that soothed worries over inflation. The Dow finished at an all-time high, while the S&P 500 ended just 0.1% under its record closing level.
The most significant indicator was found in the bond market. Brent’s October futures were down 4.7%, and the yield on the 10-year note slipped by 6.1 basis points. The Nasdaq outperformed the Dow by 0.81 percentage point.
Cross-asset closing levels on Monday
| Asset | Close | Monday move |
|---|---|---|
| Dow Jones Industrial Average | 53,178.41 | up 1.32% |
| S&P 500 | 7,600.50 | advanced 1.48% |
| Nasdaq Composite | 25,913.90 | climbed 2.13% |
| Brent crude, October comparison | $83.77 | fell 4.7% |
| WTI crude | $80.34 | dropped 5.1% |
| 10-year Treasury yield | 4.684% | down 6.1 bp |
The front-month Brent contract dropped by 7%, factoring in Friday’s contract expiration. The new October contract closed down 4.7% compared to its previous finish.
Long-duration growth stocks outperformed within that pattern. Communication services rose 4.3%, compared to a 1.2% drop for energy. Monday saw a 5.5-point difference, marking the most distinct sector shift.
Market breadth and sector rotation
| Signal | Monday reading | Comparison |
|---|---|---|
| Communication services | +4.3% | 2.82 points higher than S&P 500 |
| Energy | -1.2% | 2.68 points under S&P 500 |
| Sector performance gap | 5.5 points | Communication services lead over energy |
| NYSE advance-decline ratio | 2.62-to-1 | Advancers outpaced decliners |
| Nasdaq advance-decline ratio | 3.01-to-1 | Advancers outnumbered decliners |
| U.S. exchange volume | 19.36 billion | 9.6% above the 20-day average |
The advance was widespread; however, the biggest dollar increases were concentrated among four megacap stocks.
Nvidia NASDAQ:NVDA, Microsoft NASDAQ:MSFT, Amazon NASDAQ:AMZN and Meta Platforms NASDAQ:META collectively gained roughly $537 billion in market value, while Apple NASDAQ:AAPL saw a decline of about $81 billion. Both figures are initial estimates.
Initial change in megacap market value
| Company | Late quote move | Estimated value change |
|---|---|---|
| Microsoft | +4.94% | +$171 billion |
| Nvidia | +2.94% | +$144 billion |
| Amazon | +4.61% | +$136 billion |
| Meta Platforms | +6.01% | +$86 billion |
| Apple | -1.78% | -$81 billion |
| Total change | — | +$456 billion |
The divergence is significant. Apple declined even as the index climbed, indicating investors favored companies with strong cloud and AI growth instead of purchasing all large-cap stocks. Amazon reached $3 trillion in market capitalization for the first time.
“Every day, everybody wakes up and looks at the price of a barrel of oil and the yield on the 10-year,” Art Hogan said. Hogan serves as chief market strategist for B. Riley Wealth, a division of B. Riley Financial NASDAQ:RILY. Both indicators declined on Monday. Reuters
Fuel-intensive firms saw gains, with United Airlines Holdings NASDAQ:UAL climbing 5.8%, and American Airlines Group NASDAQ:AAL up 5.0%. Norwegian Cruise Line Holdings NYSE:NCLH increased 6.6%.
Results also boosted sentiment. Among 304 S&P 500 companies reporting, profits rose 29.3%. Roughly 85.2% exceeded analyst projections.
Inflation remained a challenge. The ISM manufacturing index climbed to 55.6, surpassing the anticipated 54.0. Its prices-paid index stayed elevated at 71.1.
Monday saw last week’s rally continue. The S&P 500 rose 1.05%, with the Nasdaq up 1.59%. However, July closed with the S&P little changed and the Nasdaq off 3.2%.
Latest index movement
| Index | Previous week | July | Monday |
|---|---|---|---|
| S&P 500 | +1.05% | Little changed | +1.48% |
| Nasdaq Composite | +1.59% | -3.2% | +2.13% |
Focus shifts to labor indicators, with the Bureau of Labor Statistics set to publish JOLTS on Tuesday, followed by preliminary productivity data Thursday and July’s payrolls on Friday. The payrolls report is due at 08:30 EDT on Friday.
U.S. calendar for the coming week
| Date | Release | Time, EDT |
|---|---|---|
| August 4 | JOLTS for June | 10:00 |
| August 6 | Preliminary productivity and costs, Q2 | 08:30 |
| August 7 | Employment report for July | 08:30 |
Traders saw a 64.5% probability of a rate hike in September. New York Fed President John Williams anticipates inflation will ease, but noted that officials may lift rates further if it fails to do so.
Risks: Iran said no talks are taking place or scheduled. Traffic through the Strait of Hormuz eased. Brent may rebound sharply. The 10-year yield stays around 71 basis points over where it was before the conflict.
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