NEW YORK, August 4, 2026, 12:12 p.m. EDT
- The Dow increased 1.6% to exceed 54,000. The S&P 500 advanced 1.4%, and the Nasdaq rose 2.0%.
- The PHLX Semiconductor Index climbed 5.7%, marking its fourth consecutive session of gains.
- Factory orders dropped by 0.3% in June, while orders for computers and electronics increased 3.2%.
U.S. equities reached new highs around midday Tuesday. The Dow surpassed 54,000, driven by robust AI-related earnings that boosted technology and industrial sectors.
Purchases have expanded beyond software to include optical connections, power semiconductors and industrial machinery. This trend indicates that AI investment is broadening to involve more suppliers.
Official economic indicators back up that divergence. Total factory orders declined by 0.3% in June, yet orders for computers and electronics increased by 3.2%. Orders for core capital goods were up 1.2%.
Around 12:10 p.m. EDT, these were the levels of the major indexes.
| Index | Level | Point change | Day move |
|---|---|---|---|
| Dow Jones Industrial Average | 54,044.07 | up 865.66 | rose 1.63% |
| Nasdaq Composite | 26,422.48 | up 508.58 | gained 1.96% |
| S&P 500 | 7,707.09 | up 106.59 | advanced 1.40% |
Market sentiment was generally upbeat, but strength was uneven. Stocks rising outnumbered those declining by over two to one, while seven out of 11 S&P sectors had traded in negative territory earlier in the session. The energy sector dropped 2.5%.
Broader market activity and company earnings reports provided a more complete comparison. The following ratios are based on the current number of issues.
| Market measure | Positive | Negative or benchmark | Ratio or gap |
|---|---|---|---|
| All U.S. issues | 5,149 advancing | 2,316 falling | 2.22:1 |
| NYSE 52-week extremes | 97 at new highs | 22 at new lows | 4.41:1 |
| Nasdaq 52-week extremes | 172 hitting highs | 53 reaching lows | 3.25:1 |
| S&P 500 earnings | 85.2% beating estimates | 67.5% historical average | +17.7 points |
Chip stocks provided the most visible momentum, as the PHLX Semiconductor Index advanced 5.7%, on track for its strongest four-day run since November 2022.
Recent trades as of 11:57 a.m. EDT illustrated the broad reach of the AI trend. Percentage shifts are based on Monday’s closing values.
| Company | Latest price | Day move | Relevant exposure |
|---|---|---|---|
| Palantir Technologies NASDAQ:PLTR | $158.25 | +25.9% | AI software, analytics |
| Coherent NYSE:COHR | $329.95 | +14.5% | Optical components |
| Lumentum Holdings NASDAQ:LITE | $855.75 | +9.7% | Optical networking |
| Caterpillar NYSE:CAT | $882.74 | +6.4% | Data-center power, construction |
| Onsemi NASDAQ:ON | $81.12 | +0.9% | Power management chips |
Caterpillar lifted its full-year sales growth outlook, with quarterly revenue climbing 24% to $20.54 billion. Sales in construction rose 35%, while the power and energy segment gained 17%. Oppenheimer Holdings (NYSE:OPY) analyst Kristen Owen described the construction-driven gains as “a standout.” Reuters
Palantir increased its projected 2026 revenue range to $8.150 billion-$8.158 billion, up from a previous outlook of $7.650 billion-$7.662 billion. Revenue for the second quarter surged 93% to $1.94 billion. CEO Alex Karp commented that the company was compounding “at a rate and scale that we have never before witnessed.” Reuters
Onsemi forecasts a more than twofold increase in its AI data-center revenue for 2026. The company’s third-quarter revenue midpoint stood at $1.70 billion, surpassing analyst expectations of $1.67 billion.
The overall macro environment stayed subdued, though investment sectors showed strength. Labor figures revealed a decline in job openings, with a modest rise in hiring.
| Economic measure | Latest reading | Comparison |
|---|---|---|
| Factory orders | -0.3% month on month | Reuters poll: +0.2% |
| Computers and electronics orders | +3.2% month on month | +13.9% year on year |
| Core capital-goods orders | +1.2% month on month | Shipments: +2.0% |
| Job openings | 7.359 million | Lower by 178,000 |
| Hiring | 5.348 million | Rose by 96,000 |
The labor data continued to indicate a market characterized by gradual hiring and gradual firing. Job openings fell, while hiring went up and layoffs remained close to 1.77 million.
Declining oil prices helped lift equities. WTI crude dropped 5.45% to $75.96, alleviating a key inflation worry. Gold gained 1.08% to $4,134.80.
SpaceX NASDAQ:SPCX will announce its inaugural earnings results after the market closes. Options pricing signals expectations of a 15% swing, and analysts project an operating loss of $1.55 billion on revenue nearing $7 billion.
Risks are evident. Goldman Sachs NYSE:GS forecasts Brent to trade in the $80 to $90 range until a U.S.-Iran agreement is reached or hostilities worsen. Unsuccessful negotiations could renew inflation concerns. Additionally, a disappointing SpaceX report may challenge market appetite for AI risk today.
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