Wall Street hits record highs as easing Gulf tensions lift investor sentiment

Major indices surged to fresh record highs on Tuesday as strong corporate earnings and falling oil prices boosted investor confidence on Wall Street, amid hopes of progress in efforts to reopen the Strait of Hormuz.

According to CNBC, the S&P 500 climbed 1.79% to close at a record 7,736.52, its first new high since June, while the Dow Jones Industrial Average gained 907.47 points, or 1.71%, to finish at an all-time high of 54,085.88. The Nasdaq Composite advanced 2.59% to end the session at 26,584.99.

Technology stocks led the rally, rising 4%, with Palantir Technologies soaring 29% after reporting stronger-than-expected second-quarter results. The company's chief executive, Alex Karp, attributed the performance to robust demand for AI sovereignty solutions.

Chipmakers also extended their recent recovery, with Micron Technology gaining more than 7% and Marvell Technology jumping nearly 13%.

Outside the technology sector, financial stocks rose 0.9%, led by Goldman Sachs, while industrials and materials each gained almost 2%. Caterpillar climbed more than 5% after reporting better-than-expected second-quarter earnings, raising its revenue growth guidance and citing strong demand linked to the expansion of AI data centres. The company also said it expected tariff-related costs for the year to come in at the lower end of previous guidance.

Oil prices fell sharply after US Treasury Secretary Scott Bessent said negotiations with Iran were under way and suggested an agreement to reopen the Strait of Hormuz could be reached within days, potentially helping to normalise the conflict in the region.

West Texas Intermediate crude settled 5.69% lower at US$75.77 a barrel, while Brent crude declined 5.26% to US$79.36 a barrel.

The strong market performance comes amid a robust earnings season. CNBC, citing FactSet data, reported that more than 84% of S&P 500 companies that have reported results have exceeded analysts' expectations.

Thierry Wizman, global foreign exchange and rates strategist at Macquarie Group, told CNBC that recent gains suggested investors were looking past broader global uncertainties. He said improving confidence in artificial intelligence-related investment and generally strong corporate earnings had helped fuel the market's advance.

The rally follows another strong session on Monday, when the Dow also closed at a record high and Amazon briefly surpassed a market capitalisation of US$3 trillion before its shares retreated 2% on Tuesday after founder Jeff Bezos disclosed plans to sell approximately US$4 billion worth of stock.

SOURCE: CNBC

LINK: https://www.cnbc.com/2026/08/03/stock-market-today-live-updates.html