NEW YORK, August 4, 2026, 16:03 EDT
- The NYSE finished its cash session at 16:00 EDT, with extended hours continuing through 20:00 EDT.
- The Dow climbed 1.88%, the S&P 500 added 1.90%, while the Nasdaq jumped 2.69%.
- Brent crude dropped 5.3% to $79.36, while U.S. crude closed down 5.7% at $75.77.
U.S. equities climbed sharply on Tuesday, as both the Dow and S&P 500 set new intraday highs. Gains were propelled by AI-related earnings reports and a steep decline in oil prices. The Nasdaq outperformed, buoyed by a recovery among chipmakers.
The main investor signal went further than just technology. Markets reacted positively to signs of AI investment in software, semiconductors, and industrial power equipment.
This is significant, indicating that investors are seeing revenue gains across the entire AI capital-expenditure ecosystem, not just depending on big cloud providers’ spending forecasts.
The Nasdaq ended with a decisive lead in closing levels.
| Major index | Close | Point change | Daily move |
|---|---|---|---|
| Dow Jones Industrial Average | 54,175.70 | +998.40 | +1.88% |
| S&P 500 | 7,744.97 | +144.39 | +1.90% |
| Nasdaq Composite | 26,610.62 | +697.17 | +2.69% |
Palantir Technologies NASDAQ:PLTR featured on the software front. The stock jumped almost 30% after the company lifted its full-year revenue outlook.
Caterpillar NYSE:CAT provided the industrial boost. Increased demand for power-generation machines for data centres drove its shares up roughly 6%. The stock accounted for over 300 points of the Dow’s 998-point climb.
The session’s comparative performance highlights the extent of investor preference for AI infrastructure. The following comparisons take the S&P 500’s 1.90% rise as the reference point.
| AI-linked signal | Reported move or impact | Relative strength |
|---|---|---|
| Palantir shares | Up nearly 30% | Roughly 15.8 times the S&P |
| Philadelphia Semiconductor Index | Up close to 7% | Roughly 3.7 times |
| S&P 500 technology sector | Up 4.5% | Roughly 2.4 times |
| Caterpillar’s Dow contribution | Added more than 300 points | Made up over 30% of Dow gains |
The advance was focused, yet broad. On the NYSE, advancing stocks surpassed decliners by over two to one. Market breadth on the Nasdaq was even more robust.
Earnings provided key underlying support. LSEG data showed around 85.2% of S&P 500 companies that reported results surpassed second-quarter forecasts. That is 17.7 percentage points above the historical average.
| Market-quality measure | Current reading | Comparison |
|---|---|---|
| NYSE advance-decline ratio | 2.11-to-1 | Overall positive |
| Nasdaq advance-decline ratio | 2.95-to-1 | Outpaces NYSE |
| S&P 500 earnings beat rate | 85.2% | 67.5% is the historical average |
| Beat-rate premium | 17.7 percentage points | Measured difference |
Caterpillar’s quarterly sales and revenue climbed 24% to $20.5 billion. Adjusted earnings were $8.17 per share. Chief Executive Joe Creed stated, “Strong order rates and a growing backlog reflect broadening momentum across all three of our primary segments.” Caterpillar Investors
Oil was the rally’s second driver. Brent and U.S. crude closed at their lowest in three weeks after officials cited progress in talks between the U.S. and Iran. Weaker energy prices eased inflation concerns and contributed to a decline in Treasury yields. Negotiators had not finalized a deal.
| Cross-asset indicator | Tuesday close | Daily move |
|---|---|---|
| Brent crude | $79.36 a barrel | down 5.3% |
| West Texas Intermediate | $75.77 a barrel | down 5.7% |
| Treasury yields | Lower | Drop in oil tempers inflation concerns |
Economic indicators showed relative stability. Job openings in June stood at 7.4 million, largely unchanged. Hires were steady at 5.3 million, with layoffs also low at 1.8 million.
Jack Ablin, chief investment strategist at Cresset Capital Management, observed there was “not one ounce of skepticism among investors.” He further raised doubts about whether a handful of robust earnings reports were enough to support fresh records for the S&P. Reuters
Following the market close, focus moved to SpaceX NASDAQ:SPCX and Advanced Micro Devices NASDAQ:AMD. SpaceX had arranged its initial earnings webcast since listing for 16:30 EDT, while AMD’s conference call was scheduled to begin at 17:00 EDT.
| Company | Scheduled event | Preliminary Street estimate | Main investor test |
|---|---|---|---|
| SpaceX | 16:30 EDT webcast | Roughly $6.8 billion revenue; around $2 billion EBITDA | Focus on profitability and requirements for capital |
| AMD | 17:00 EDT call | $11.34 billion revenue; $1.61 adjusted EPS | AI accelerator products and server market demand |
The next key macro event is Friday’s U.S. payrolls report. Strong jobs data may reinforce profit forecasts, but it could also reduce prospects for rate cuts.
Risks: The recent surge reflected optimism over diplomacy in advance of a formal Iran deal. Significant disruptions continued to impact Gulf shipping. Any breakdown in negotiations, another rise in oil prices, or disappointing after-market guidance may swiftly challenge the top performers from Tuesday.
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