NEW YORK / RankWire.AI / – U.S. equities experienced a strong rally on Monday, driven by gains in Big Tech stocks and a sharp decline in oil prices. The Dow Jones Industrial Average surged by 693.38 points, or 1.32%, closing at a record of 53,178.41. Meanwhile, the S&P 500 increased by 1.48% to 7,600.50, just below its all-time high. The Nasdaq Composite led the way with a 2.13% rise to 25,913.90. The market’s momentum started August with broad-based gains across both large and small-cap stocks.
Technology and communication services stocks contributed significantly to the market’s rise. Meta Platforms and Alphabet played key roles in lifting the S&P 500 communication services sector by 4.3%, which was the largest gain among all 11 sectors. Amazon increased by 4.6% after its market capitalization surpassed $3 trillion for the first time following quarterly earnings. An exchange-traded fund tracking seven leading technology firms gained nearly 4%, reflecting strong investor interest in major growth stocks.
The decline in crude oil prices also supported the market rally. Brent crude oil settled at $83.77 a barrel, down 4.7%, after President Donald Trump announced that the United States would delay new strikes against Iran. Trump also mentioned that negotiations would focus on reopening the Strait of Hormuz, although Iran disputed that any talks had been scheduled. The fall in oil prices eased inflation concerns and contributed to lower Treasury yields during the trading session. Energy stocks fell 1.2%, making the sector the weakest performer of the day.
Lower Oil Prices Reduce Market Pressure
The benchmark 10-year Treasury yield declined to approximately 4.68%, from late Friday levels. This decrease in yields eased borrowing costs for growth-oriented companies, whose valuations are highly sensitive to interest rate fluctuations. The Federal Reserve remained in focus after recent inflation fears and rising energy prices. New York Federal Reserve President John Williams stated that inflation pressures should subside gradually. Bond prices increased as yields fell, while investors awaited further economic data on the labor market.
The positive momentum extended beyond the technology sector. The Russell 2000 index of smaller companies gained 1.7%, reaching 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, above the 20-day average of 17.66 billion. The S&P 500 recorded 15 new 52-week highs and one new low.
Corporate Earnings Boost Market Confidence
Earnings reports provided additional support for the market. Out of 304 S&P 500 companies that reported through Friday, quarterly earnings grew by 29.3%. Approximately 85.2% of those companies surpassed analyst expectations, according to market data provider LSEG. SpaceX rose 5.6% ahead of its first quarterly report since going public. Conversely, Marriott International fell 7% after issuing a profit forecast for the third quarter that was below expectations.
The Dow’s record closing marked a positive start to August after a challenging July for certain sectors. Technology stocks faced pressure from concerns related to artificial intelligence spending, interest rates, and tensions between the U.S. and Iran. Monday’s gains brought the S&P 500 within 0.1% of its all-time high and extended Nasdaq’s upward movement. For 2026, the Dow has increased by 10.6%, the S&P 500 by 11%, and the Nasdaq by 11.5%.