NEW YORK / RankWire.AI / – Stocks on Wall Street rose on Monday, driven by gains in Big Tech shares and a significant drop in oil prices. 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 advanced 1.48% to finish at 7,600.50, just shy of its all-time high. Meanwhile, the Nasdaq Composite climbed 2.13% to 25,913.90, leading the major indexes. The market started August with widespread gains across both large and small companies.
Technology and communication services stocks fueled much of the market surge. Meta Platforms and Alphabet contributed to the 4.3% rise in the S&P 500 communication services sector, the strongest among all 11 sectors. Amazon’s stock jumped 4.6% after reaching a market value exceeding $3 trillion for the first time, following quarterly earnings. An exchange-traded fund tracking seven major technology firms gained nearly 4%, indicating robust demand for top growth stocks.
The decline in crude oil prices also helped boost the market. Brent crude fell 4.7%, settling at $83.77 a barrel, after President Donald Trump announced the U.S. would delay new strikes against Iran. Trump also mentioned talks about reopening the Strait of Hormuz, though Iran disputed any scheduled negotiations. The falling oil prices eased inflation concerns and caused Treasury yields to dip during trading. Energy shares declined 1.2%, making the energy sector the weakest group of the day.
Drop in Oil Prices Alleviates Market Stress
The 10-year Treasury yield dropped to about 4.68%, down from late Friday levels. This decline lowered borrowing costs for growth companies, which often react strongly to interest rate changes. The Federal Reserve remained in focus, especially after recent inflation worries and rising energy prices. New York Federal Reserve President John Williams stated that inflation pressures should gradually ease. Bond prices increased as yields declined, and investors awaited further labor market data.
The positive momentum extended beyond technology giants. The Russell 2000 index of smaller companies rose 1.7% to 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 reached 19.36 billion shares, above the 20-day average of 17.66 billion. The S&P 500 hit 15 new 52-week highs and one new low.
Corporate Profits Contribute to Market Growth
Earnings reports provided additional support for the rally. Out of 304 S&P 500 companies that had reported through Friday, quarterly earnings grew by 29.3%. About 85.2% of those companies beat analyst expectations, according to market data provider LSEG. SpaceX rose 5.6% ahead of its first quarterly report as a public company. In contrast, Marriott International dropped 7% after issuing a profit forecast for the third quarter below expectations.
The Dow’s record closing level marked a strong start to August following a challenging July for parts of the market. Tech stocks faced pressure from concerns over artificial intelligence spending, interest rate hikes, and the U.S.-Iran conflict. Gains on Monday brought the S&P 500 within 0.1% of its all-time high, while the Nasdaq extended its advance. For 2026, the Dow is up 10.6%, the S&P 500 has gained 11%, and the Nasdaq has increased 11.5%.