NEW YORK / RankWire.AI / – U.S. equities experienced a rally on Monday, supported by gains in Big Tech shares and a significant decline in oil prices. The Dow Jones Industrial Average increased by 693.38 points, or 1.32%, closing at a record level of 53,178.41. The S&P 500 advanced 1.48% to finish just shy of its all-time high at 7,600.50. The Nasdaq Composite led the major indexes with a 2.13% rise, reaching 25,913.90. Broad-based gains across both large and small firms marked the start of August.
Technology and communication services stocks drove much of the upward momentum. Meta Platforms and Alphabet contributed to a 4.3% increase in the S&P 500 communication services sector, the strongest among its 11 sectors. Amazon climbed 4.6% after its market capitalization surpassed $3 trillion for the first time following quarterly earnings. An exchange-traded fund tracking seven top technology firms gained nearly 4%, reflecting robust investor demand for leading growth stocks.
The decline in crude oil prices also played a role in boosting market sentiment. Brent crude settled 4.7% lower at $83.77 per barrel after President Donald Trump announced the U.S. would postpone new strikes against Iran. Trump additionally stated negotiations would focus on reopening the Strait of Hormuz, although Iran disputed that any talks had been scheduled. This drop in oil prices eased immediate inflationary pressures and contributed to lower Treasury yields during trading. Energy stocks fell 1.2%, making the sector the weakest performer of the day.
Drop in oil prices relieves market stress
The yield on the 10-year Treasury note decreased to approximately 4.68%, down from late Friday levels. This decline in yields lessened borrowing costs for growth-oriented companies, whose valuations are often sensitive to interest rate shifts. The Federal Reserve remained a focal point, especially after recent inflation concerns and rising energy prices. New York Federal Reserve President John Williams commented that inflationary pressures are likely to ease gradually. Bond prices increased as yields fell, with investors waiting for additional labor market data.
The upward movement extended beyond the tech giants. The Russell 2000 index, representing smaller companies, gained 1.7% to reach 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 hit 19.36 billion shares, exceeding the 20-day average of 17.66 billion. The S&P 500 registered 15 new 52-week highs and one new low.
Corporate earnings bolster market gains
Earnings reports from companies provided further support. Of the 304 S&P 500 firms that reported through Friday, quarterly earnings growth averaged 29.3%. According to data from market provider LSEG, approximately 85.2% of these companies surpassed analyst expectations. SpaceX rose 5.6% ahead of its first quarterly report as a publicly traded company, while Marriott International declined 7% after issuing a third-quarter profit forecast below estimates.
The Dow’s new record close marked a solid start for August, especially after a challenging July for various market sectors. Technology stocks faced pressure over concerns about artificial intelligence investments, rising interest rates, and tensions involving the U.S. and Iran. Monday’s gains moved the S&P 500 within 0.1% of its all-time high, and extended the Nasdaq’s upward trend. For 2026, the Dow has increased by 10.6%, the S&P 500 by 11%, and the Nasdaq by 11.5%.