Dow Hits Fresh Record, S&P 500 and Nasdaq Surge on Tech Rally, Iran Optimism; Dow Up 1.9%, S&P 500 +1.9%, Nasdaq +2.7%

US equity markets rallied sharply on Tuesday, August 4, with the Dow Jones Industrial Average climbing 1.88 percent to close above 54,000 at a fresh record high, the S&P 500 advancing 1.92 percent to 7,746 and closing at its own record, and the Nasdaq Composite surging 2.73 percent to 26,329. The gains built on Monday's session, which had already seen the Dow post a record close after climbing 1.32 percent. Tech stocks led the advance on Tuesday, fueled by blowout earnings from Palantir, which soared roughly 30 percent, and Caterpillar, which gained 6 percent after reporting over $20 billion in quarterly revenue for the first time. Oil prices fell over 4 percent on optimism that mediators will broker a deal to reopen the Strait of Hormuz, easing inflation expectations and lifting sentiment across risk assets. The PHLX Semiconductor Index jumped 5.7 percent, as an expanding wave of AI investment lifted chip and industrial names. Treasury yields slipped 4 basis points to 4.64 percent, further aiding equity markets. Advancers outnumbered decliners on the NYSE by a 2.62-to-1 ratio, and on the Nasdaq by a 3.01-to-1 ratio. The rally marks the fourth consecutive session of gains for the S&P 500 and signals that investor confidence in the AI-driven earnings cycle remains intact despite earlier volatility around mixed Magnificent Seven results. The combination of falling oil prices, strong corporate earnings, and progress toward a Hormuz deal has created a rare window of positive catalysts that is lifting both growth and cyclical stocks. With the VIX falling to 15.57 and breadth improving across sectors, the near-term technical setup favors continued upside, though investors will be watching tonight's SpaceX earnings and Thursday's jobs data for confirmation that the rally can be sustained. Sources: Yahoo Finance, Bloomberg, TheStreet, TS2.tech, Schaeffers Research. Index closing levels and percentage gains verified across multiple sources dated August 4, 2026.