Image Source: CNBC
Nasdaq today saw a powerful advance as technology shares rallied sharply and strong corporate earnings lifted investor confidence. The Nasdaq Composite jumped 2.5% on Tuesday, Aug. 4, 2026, while the S&P 500 and Dow Jones Industrial Average reached fresh records.
The broad market rally came as oil prices dropped on hopes that the Strait of Hormuz could reopen. Treasury Secretary Scott Bessent said the United States was in talks with Iran and that a deal could potentially be reached Tuesday or Wednesday to restore freedom of movement for commercial ships.
Nasdaq Today Gains Momentum as Tech Stocks Surge
Technology was the strongest-performing sector in the S&P 500, rising about 4%. Palantir Technologies was the standout performer, soaring 29% after reporting better-than-expected second-quarter results. The company said demand for its artificial intelligence and sovereignty-focused tools remained exceptionally strong.
Palantir CEO Alex Karp described the results as “otherworldly,” pointing to growing demand from businesses and governments seeking greater control over artificial intelligence infrastructure. The stock was on pace for its best session in more than two years.
Semiconductor shares also extended their recovery after a difficult July. Micron Technology gained 7%, while Marvell Technology advanced 14%. Bank of America described Micron’s long-term fundamentals as compelling, citing rising contracts with major cloud companies and continued spending by artificial intelligence hyperscalers.
- Nasdaq Composite: up 2.5%
- S&P 500: up 1.8% and reached a record high
- Dow Jones Industrial Average: up 1,035 points, or 2%
- Palantir Technologies: up 29%
- Micron Technology: up 7%
- Marvell Technology: up 14%
Historic Dow Rally Fueled by Caterpillar Earnings
The Dow’s advance was supported by Caterpillar, which climbed about 6% after reporting strong second-quarter results. The industrial equipment maker earned an adjusted $8.17 per share on revenue of $20.54 billion, exceeding analysts’ expectations of $6.20 per share on revenue of $19.34 billion.
Caterpillar also raised its revenue growth guidance. Management pointed to strong demand for heavy equipment as construction of artificial intelligence data centers accelerates across the United States. The company added that full-year tariff costs should fall near the lower end of its previous forecast.
Financial stocks gained roughly 1%, led by Goldman Sachs, which rose more than 3%. Industrials and materials each advanced nearly 2%, showing that the rally extended beyond the technology sector.
Oil Prices Slide on Strait of Hormuz Hopes
Oil prices reversed lower after Bessent’s comments about possible negotiations with Iran. West Texas Intermediate crude fell about 5% to roughly $75 per barrel, while Brent crude declined about 5% to approximately $79.
The Strait of Hormuz is a critical route for global energy shipments. A reopening could allow hundreds of ships delayed in the Persian Gulf to leave the region, potentially easing supply concerns and lowering pressure on fuel prices.
Investors remain cautious because reports surrounding the negotiations have been inconsistent. Iran has denied that direct discussions with Washington were underway, while U.S. officials have continued to suggest that diplomatic progress may be possible.
Strong Earnings Season Supports Wall Street Rally
Corporate results provided another major boost. According to FactSet, more than 84% of S&P 500 companies that have reported earnings have exceeded expectations. The strong performance has helped investors look beyond concerns about inflation, interest rates and geopolitical conflict.
Amazon shares fell more than 2% after a filing showed founder Jeff Bezos sold approximately 15 million shares worth about $4.1 billion. The move followed Amazon’s record close and its recent rise above a $3 trillion market value.
Chipotle Mexican Grill moved in the opposite direction, dropping about 8% after the company temporarily removed jalapenos from Minnesota restaurants. The action followed a possible connection between its ingredient supply and a salmonella outbreak under investigation by public health authorities.
What Investors Are Watching Next
Despite the upbeat session, market participants are monitoring several risks. Philadelphia Federal Reserve President Anna Paulson said current interest rates remain sufficiently restrictive to guide inflation toward the central bank’s 2% target. The Fed’s benchmark rate currently stands between 3.5% and 3.75%.
Separate labor data showed U.S. job openings slipped to 7.36 million in June, below economists’ expectations of 7.6 million. The report suggested that hiring demand was cooling modestly, though the ratio of available positions to unemployed workers remained just above one-to-one.
For now, Nasdaq today reflects a renewed appetite for artificial intelligence, semiconductors and growth stocks. However, oil prices, interest-rate expectations and Middle East developments could determine whether the rally continues or gives way to another bout of volatility.
Frequently Asked Questions
What happened in the Nasdaq today?
The Nasdaq Composite rose 2.5% on Tuesday, Aug. 4, 2026, led by major gains in Palantir, Micron and Marvell.
Why did Palantir stock jump?
Palantir shares surged after the company reported blowout second-quarter results and highlighted strong demand for its artificial intelligence tools.
Why did oil prices fall?
Oil prices dropped after Treasury Secretary Scott Bessent said a possible agreement could reopen the Strait of Hormuz and restore commercial shipping movement.
Did the S&P 500 reach a record high?
Yes. The S&P 500 climbed 1.8% and reached a fresh record high during Tuesday’s trading session.
