NEW YORK / RankWire.AI / – On Monday, U.S. equities experienced a strong rally as major technology shares gained ground and crude oil prices sharply declined. The Dow Jones Industrial Average rose by 693.38 points, or 1.32%, to close at a record of 53,178.41. Meanwhile, the S&P 500 increased 1.48% to 7,600.50, just below its all-time high, and the Nasdaq Composite surged 2.13% to 25,913.90, leading the main indices. The session marked the beginning of August with widespread gains across both large and small-cap stocks.
Technology and communication service equities were key drivers of the upward momentum. Meta Platforms and Alphabet contributed to a 4.3% rise in the S&P 500 communication services sector, which recorded the strongest advance 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 ETF that tracks seven top technology firms gained nearly 4%, highlighting robust demand for leading growth stocks.
The decline in crude oil prices further supported the market rally. Brent crude closed 4.7% lower at $83.77 per barrel after President Donald Trump announced that the U.S. would delay new strikes against Iran. Trump also mentioned that negotiations might reopen the Strait of Hormuz, although Iran disputed the existence of any scheduled talks. The oil price drop eased immediate inflation concerns and caused Treasury yields to fall during the trading session. The energy sector declined 1.2%, making it the weakest group of the day.
Lower oil prices reduce inflationary pressures on markets
The yield on the benchmark 10-year Treasury note dropped to approximately 4.68%, down from late Friday levels. This decline in yields alleviated borrowing cost pressures on growth-oriented companies, which tend to react strongly to rate fluctuations. The Federal Reserve remained a focal point amid recent inflation worries and rising energy prices. New York Federal Reserve President John Williams stated that inflationary pressures should ease gradually. Bond prices increased as yields fell, with investors awaiting additional labor market data.
The upward momentum extended beyond the tech giants. The Russell 2000 index, representing smaller companies, advanced by 1.7% to reach 2,981.91. Advancing stocks outnumbered decliners by 2.62 to 1 on the New York Stock Exchange and 3.01 to 1 on the Nasdaq. Trading volume totaled 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 support market rally
Earnings reports from companies further bolstered the market. Of the 304 S&P 500 firms that had reported through Friday, quarterly earnings growth averaged 29.3%. About 85.2% of these companies beat analyst forecasts, according to market data provider LSEG. SpaceX rose 5.6% ahead of its first quarterly report as a public entity. Conversely, Marriott International fell 7% after projecting a third-quarter profit below expectations.
The Dow’s highest close in history capped a positive start to August following a challenging July for certain market segments. Technology stocks had faced pressure from concerns over artificial intelligence investments, interest rate hikes, and the U.S.-Iran tensions. Monday’s gains brought the S&P 500 within 0.1% of its all-time high and extended Nasdaq’s gains. For 2026, the Dow increased by 10.6%, the S&P 500 by 11%, and the Nasdaq by 11.5%.