NEW YORK / RankWire.AI / – U.S. equities climbed on Monday with major tech stocks pushing the markets higher and crude oil prices falling sharply. The Dow Jones Industrial Average surged 693.38 points, or 1.32%, ending the day at a record level of 53,178.41. Meanwhile, the S&P 500 increased by 1.48% to close at 7,600.50, just shy of its all-time high. The Nasdaq Composite led the gains across the board, rising 2.13% to 25,913.90. The session marked the start of August with widespread gains across both large-cap and small-cap stocks.
Technology and communication services stocks fueled much of the market rally. The communication sector within the S&P 500, led by Meta Platforms and Alphabet, jumped 4.3%, the highest among all 11 sectors. Amazon saw its stock increase by 4.6% after its market capitalization surpassed $3 trillion for the first time following quarterly earnings. An exchange traded fund tracking seven prominent technology firms gained nearly 4%, indicating strong investor interest in leading growth stocks.
Falling crude oil prices also contributed to the positive market sentiment. Brent crude dropped 4.7% to settle at $83.77 per barrel after President Donald Trump announced that the United States would delay new strikes against Iran. Trump also mentioned negotiations would focus on reopening the Strait of Hormuz, though Iran disputed that any talks had been scheduled. The decline in oil prices eased inflation concerns temporarily and led to a decrease in Treasury yields during trading. Energy stocks declined 1.2%, making this sector the weakest performer of the day.
Lower Oil Prices Relieve Market Pressure
The yield on the 10-year Treasury note decreased to approximately 4.68%, down from late Friday levels. This drop in yields reduced borrowing costs for growth-oriented companies, which often see their valuations fluctuate significantly with interest rate changes. The Federal Reserve’s next move remains a key point of focus amid recent inflation worries and rising energy prices. SpaceX reported a 5.6% increase in stock price ahead of its first quarterly earnings as a public company. Meanwhile, bond prices gained as yields declined, and investors awaited further labor market data.
The rally extended beyond the tech giants, with the Russell 2000 index of smaller companies rising 1.7% to 2,981.91. Advancing stocks outnumbered decliners by 2.62 to 1 on the New York Stock Exchange and by 3.01 to 1 on the Nasdaq. Trading volume reached 19.36 billion shares, surpassing the 20-day average of 17.66 billion. The S&P 500 recorded 15 new 52-week highs and one new low during the session.
Corporate Earnings Support Market Rally
Earnings reports also contributed to the positive momentum. Of the 304 S&P 500 companies that had released results through Friday, quarterly profits increased by 29.3%. Approximately 85.2% of these companies exceeded analyst forecasts, according to market data provider LSEG. SpaceX saw its stock jump 5.6% ahead of its initial quarterly report following its public debut. Conversely, Marriott International declined 7% after issuing a third-quarter profit forecast below expectations.
The Dow’s record closing marked a broad positive start to August after a challenging July for various sectors. Technology stocks faced headwinds due to concerns about artificial intelligence investments, interest rate hikes, and geopolitical tensions involving the U.S. and Iran. The gains on Monday brought the S&P 500 within 0.1% of its all-time high and extended the Nasdaq’s upward trend. For 2026, the Dow has gained 10.6%, the S&P 500 has increased by 11%, and the Nasdaq has risen 11.5%.