Stocks closed at records Tuesday, Aug. 4, as the Dow Jones Industrial Average surged 907.47 points and the S&P 500 finished above 7,700 for the first time, according to CNBC.
The Dow rose 1.71% to 54,085.88, while the S&P 500 gained 1.79% to 7,736.52 and the Nasdaq Composite advanced 2.59% to 26,584.99. End of the American Dream reported that the stock market is "soaring to new heights" while "commercial vessels are being hit by cruise missiles in the Strait of Hormuz" [1].
Technology led the advance. Palantir Technologies rose 29%, its best day since February 2024, on stronger-than-expected earnings. Caterpillar was the top Dow gainer, climbing more than 5% after beating quarterly estimates.
Beyond tech, financials, industrials and materials each advanced, according to CNBC. More than 80% of volume on Nasdaq and nearly 70% on NYSE was in advancing stocks, FactSet data showed.
Oil Declines on Hopes of Strait of Hormuz Deal
Oil prices fell Tuesday after Treasury Secretary Scott Bessent said a deal to reopen the Strait of Hormuz could be reached within days. West Texas Intermediate settled down 5.69% to $75.77 per barrel, and Brent crude declined 5.26% to $79.36, according to CNBC. ZeroHedge reported that futures rose to a record high as oil tumbled after Bessent said Hormuz may "reopen tomorrow" [2].
Speaking on CNBC's "Squawk Box," Bessent said: "We are in talks with the Iranians. 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." He said the arrangement would provide "freedom of movement" for commercial ships.
Tehran has denied direct negotiations with Washington, and oil had risen earlier Tuesday after conflicting signals from Iran, according to CNBC. In May, Brent plunged nearly 11% on reports that the United States and Iran were nearing a peace agreement [3]. U.S. and Israeli strikes on Iran in March had sent Brent up about 8% in early trading [4].
Federal Reserve Official Says Current Rates "Mildly Restrictive"
Philadelphia Federal Reserve President Anna Paulson said Tuesday she is content with the central bank's current target range of 3.5%-3.75%. In her first CNBC interview, Paulson said: "I think we need... policy that's mildly restrictive, and I think policy has been mildly restrictive to get underlying inflation back down to 2% in an acceptable time period." She added, "I need to see progress from here."
The Fed has held rates steady all year as inflation remains above its 2% target. The central bank has said its goal is 2% inflation, the Trends Journal noted [5]. Some analysts have warned that higher interest rates exert a delayed drag, with the Trends Journal observing that "the higher interest rates rise, the deeper economies will fall" [6].
Earnings Season Powers Rally; Palantir and Caterpillar Lead
More than 84% of S&P 500 companies that have reported earnings beat analyst expectations, according to FactSet data cited by CNBC. Palantir reported blowout second-quarter results, which CEO Alex Karp described as "otherworldly" because of demand tied to artificial intelligence (AI) sovereignty. The stock rose 29% in its best session in more than two years, according to CNBC.
Caterpillar reported adjusted earnings of $8.17 per share on revenue of $20.54 billion, above the $6.20 per share and $19.34 billion expected by analysts polled by LSEG, according to CNBC. The company raised its revenue growth guidance and said tariff costs for the full year should come in at the lower end of its expected range.
Chip stocks also rallied, with Micron Technology up more than 7% and Marvell Technology advancing nearly 13%, according to CNBC. The move extended a recovery in semiconductor names that began after ASML's strong earnings boosted sentiment across the AI infrastructure trade [7].
Broad Market Participation and Cautious Optimism
Nearly 80% of volume on Nasdaq and almost 70% on the New York Stock Exchange was advancing Tuesday, according to FactSet data. Advancing stocks outnumbered decliners by roughly three-to-one on both exchanges, CNBC reported, pointing to a broad-based rally.
Retail investors continued to buy SpaceX despite the stock trading more than 17% below its opening price, according to VandaTrack. "Retail conviction in the name remains unusually persistent," Vanda wrote in a note, adding: "They may be bracing for lift-off after earnings." SpaceX was scheduled to report its first earnings after the bell Tuesday.
Thierry Wizman, global FX & rates strategist at Macquarie Group, said: "From watching the stock market zoom higher over the past three sessions, you wouldn't think there's anything wrong with the world." He noted that semiconductor makers recovered from a July skid after AI hyperscalers eased analysts' fears about data center spending.
The rally persisted despite uncertainty in the Middle East and the Fed's cautious stance on rates. Earlier episodes of ceasefire optimism also drove stocks higher; in June, global stocks surged as oil prices plummeted 6% and the Nasdaq 100 hit a record close, according to NaturalNews.com [8].
References
- "While The World Burns, The Stock Market Is Soaring To New Heights Never Seen Before". End of the American Dream. August 4, 2026.
- "Futures Hit Record High As Oil Tumbles After Bessent Says Hormuz May 'Reopen Tomorrow'". Zero Hedge. August 4, 2026.
- Willow Tohi. "Global Oil Markets Rally as U.S.-Iran Peace Talks Signal Potential Reopening of Strait of Hormuz". NaturalNews.com. May 8, 2026.
- "US Stocks Fall, Oil Prices Surge Following US-Israel Strikes on Iran". NaturalNews.com. March 4, 2026.
- "Trends-Journal-2023-07-28". Trends Journal. 2023.
- "Trends-Journal-2023-05-21". Trends Journal. 2023.
- "Futures Rise After Blowout ASML Earnings Boost Tech Sentiment". Zero Hedge. July 15, 2026.
- Willow Tohi. "Global Stocks Surge Amid Iran-Israel Ceasefire Chaos". NaturalNews.com. June 26, 2025.
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