US Stock Market Summary for August 4, 2026

The Dow gained 1.71% to 54,085.88 and the S&P 500 rose 1.79% to 7,736.52, both closing at record highs. The Nasdaq climbed 2.59% to 26,584.99, marking a fourth straight day of gains. Two catalysts were at play. First, earnings: Palantir and Caterpillar both lifted their full-year guidance, easing doubts about AI demand (Reuters). Second, the Middle East: Treasury Secretary Bessent indicated a deal to reopen the Strait of Hormuz was imminent (WSJ). On the macro side, the June JOLTS report was released. With job openings declining, the probability of a September rate hike fell from 67.2% to 56.9% (Reuters). The VIX (volatility index) actually rose 3.78% to 16.46. The Fear & Greed Index (investor-sentiment thermometer) read 58 ("Greed").

It was a day when money rotated from defense into offense. The direction of the rotation (the flow of capital moving between sectors) was clear. Seven of the eleven sectors advanced, while the four decliners were Real Estate, Health Care, Energy, and Utilities. AI earnings led the gainers, while a sharp drop in oil prices and waning demand for safe-haven assets pressured the laggards.

> The key events for the next trading day are displayed automatically.

> "I can't detect even an ounce of skepticism from investors. From oil to rates to equities, it's all one direction."

> — Jack Ablin, Chief Investment Strategist and Founding Partner, Cresset Capital Management

> "If you only watched the stock market rip higher over the past three sessions, it would be hard to think anything was wrong in the world."

> — Thierry Wizman, Global FX and Rates Strategist, Macquarie Group

> "Iran won't agree to any deal unless it gains control over the strait. That's why we see a very high probability that this deal falls apart."

> — Ryan McKay, Director of Commodities Strategy, TD Securities

Technical signals are split exactly down the middle, with 120 bullish and 120 bearish among 240 signals. On the bullish side, MACD golden crosses (a signal in which a short-term trendline crosses above a long-term trendline) clustered around AI leaders such as Nvidia, Alphabet, and TSMC. On the bearish side, RSI overbought readings (a signal suggesting prices have risen too far and may need to rest) piled up in names that surged on the day, such as Microsoft and Palantir. Meanwhile, other bullish signals such as lower Bollinger Band breaches (a move below the lower boundary of an asset's typical trading range) clustered in overlooked Health Care names such as Eli Lilly and UnitedHealth (View Technical Signals Report). Today confirmed the thesis that "as long as AI earnings are solid, the market comes back to life." Tomorrow, the only thing to watch is whether the chip stocks that surged today can hold those gains.