NEW YORK / RankWire.AI / – U.S. stocks experienced a rally on Monday, with Big Tech shares leading gains and oil prices falling sharply. The Dow Jones Industrial Average increased by 693.38 points, or 1.32%, closing at a record of 53,178.41. The S&P 500 rose by 1.48% to finish just below its all-time high at 7,600.50, while the Nasdaq Composite surged 2.13% to 25,913.90, topping the major indexes. The market started August with widespread gains across both large-cap and small-cap stocks.
Technology and communication services stocks largely fueled the advance. Meta Platforms and Alphabet contributed to a 4.3% increase in the S&P 500 communication services sector, making it the top performer among 11 sectors. Amazon’s shares climbed 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 demand for major growth stocks.
A decline in crude oil prices further supported the upward move. Brent crude settled 4.7% lower at $83.77 per barrel after President Donald Trump announced that the United States would delay any new strikes against Iran. Trump also mentioned that negotiations would address reopening the Strait of Hormuz, although Iran contested the scheduling of any talks. This drop in oil prices alleviated near-term inflation concerns and contributed to lower Treasury yields during trading. Energy shares fell 1.2%, making the sector the weakest on the day.
Lower Oil Prices Reduce Market Strain
The benchmark 10-year Treasury yield declined to approximately 4.68%, down from late Friday levels. This decrease in yields eased borrowing cost pressures on growth-oriented companies, which are often highly sensitive to interest rate fluctuations. Market participants focused on the Federal Reserve amid recent inflation worries and rising energy costs. New York Federal Reserve President John Williams indicated that inflationary pressures should ease gradually. Bond prices gained as yields declined, while investors awaited further labor market data.
The positive momentum extended beyond major technology stocks. The Russell 2000 index of smaller companies increased by 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, above the 20-day average of 17.66 billion. The S&P 500 also posted 15 new 52-week highs and one new low.
Corporate Earnings Add Momentum to Market Gains
Earnings reports from companies provided additional support for the rally. Of the 304 S&P 500 firms that had reported through Friday, quarterly earnings growth averaged 29.3%. Market data from LSEG showed that approximately 85.2% of these companies surpassed analyst forecasts. SpaceX climbed 5.6% ahead of its first quarterly report as a public company. Meanwhile, Marriott International dropped 7% after issuing a third-quarter profit outlook below expectations.
The Dow’s record closing capped a strong start to August following a challenging July for parts of the market. Concerns over artificial intelligence spending, interest rate hikes, and tensions between the U.S. and Iran had previously weighed on technology shares. Monday’s gains brought the S&P 500 within 0.1% of its all-time high and extended Nasdaq’s upward trajectory. For 2026, the Dow has gained 10.6%, the S&P 500 has increased by 11%, and the Nasdaq has risen by 11.5%.