Full Breakdown
US Stocks Surge to Record Highs on August 4, 2026 Amid Corporate Earnings and Falling Oil Prices
8/6/2026, 1:00:43 AM
Market Rally Overview
On Tuesday, August 4, 2026, U.S. equity indexes posted fresh record highs. The S&P 500 rose 1.8% to a new peak, the Dow Jones Industrial Average added 907 points (1.7%), and the Nasdaq Composite jumped 2.6%. The gains followed a sharp decline in Brent crude, which slipped to $79.64 a barrel, and a drop in the 10-year Treasury yield to 4.63% (down from 4.70% on August 3).
Background: Iran Conflict and Oil Market
The rally unfolded as the war in Iran entered a tentative phase. Uncertainty over when oil tankers could resume free transit through the Strait of Hormuz had kept Brent crude volatile, swinging between $72 and $102 during July. A recent easing of that tension, coupled with optimism that a diplomatic deal could reopen the strait, helped lower energy prices and ease inflation concerns.
Earnings Drivers and Key Performers
Corporate profitability powered the market surge.
- Palantir Technologies surged roughly 29% after CEO Alex Karp reported a 93% revenue jump for the quarter and raised the full-year 2026 forecast.
- Caterpillar climbed 6.5% as the heavy-equipment maker posted its first quarter with over $20 billion in sales and revenue, citing strong order rates and a growing backlog.
- McDonald’s added 0.9% after beating profit expectations despite higher gasoline costs for consumers.
FactSet data indicated that S&P 500 companies were on track for an almost 50% year-over-year earnings-per-share increase for the spring quarter—the largest such jump since the spring of 2021, when the economy was emerging from the COVID-19 pandemic.
Official Statements & Responses
Treasury Secretary Scott Bessent told CNBC that a deal to reopen the Strait of Hormuz could be reached “within the next 24-48 hours,” reinforcing investor optimism that the conflict’s impact on oil supplies would soon recede.
Verbatim Quotes
- “I think 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,” — Scott Bessent, Treasury Secretary “I think 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,” — Scott Bessent, after treasury secretary
What’s Next
Investors will watch for confirmation of the Strait of Hormuz agreement, which could further stabilize oil markets. Continued earnings releases from AI-linked firms and heavy-equipment manufacturers are expected to shape market momentum in the coming weeks.
