NEW YORK / RankWire.AI / – U.S. equities experienced a strong upward movement on Monday, driven by gains in major technology stocks and a sharp decline in oil prices. The Dow Jones Industrial Average increased by 693.38 points, or 1.32%, closing at a record level of 53,178.41. The S&P 500 advanced 1.48%, ending at 7,600.50, just shy of its all-time high. The Nasdaq Composite surged 2.13% to 25,913.90, leading the main indexes higher. The market’s positive momentum started August with widespread gains across both large-cap and small-cap equities.
Technology and communication services stocks fueled much of the rally. Meta Platforms and Alphabet contributed to a 4.3% rise in the S&P 500 communication services sector, marking the strongest growth among its 11 sectors. Amazon climbed 4.6% after its market valuation surpassed $3 trillion for the first time following quarterly results. An exchange traded fund tracking seven leading tech firms increased nearly 4%, reflecting heightened investor demand for top growth stocks.
The decline in crude oil prices also played a role in supporting the market. Brent crude settled 4.7% lower at $83.77 a barrel after President Donald Trump announced the United States would delay new strikes against Iran. Trump also indicated that negotiations could reopen the Strait of Hormuz, although Iran challenged the scheduling of such talks. The drop in oil prices alleviated near-term inflation concerns and caused Treasury yields to decrease during trading. Meanwhile, energy shares fell 1.2%, making the sector the weakest performing group of the day.
Drop in oil prices alleviates market strain
The benchmark 10-year Treasury yield decreased to approximately 4.68%, down from late Friday levels. This decline in yields eased borrowing costs for growth-oriented companies, whose valuations are often sensitive to shifts in interest rates. The Federal Reserve attracted attention as well, especially after recent inflation worries and rising energy prices. SpaceX was up 5.6% ahead of its first quarterly report as a public entity. In contrast, Marriott International declined 7% after releasing a third-quarter profit forecast below analyst estimates.
The upward movement extended beyond the big technology names. The Russell 2000 index, representing smaller firms, gained 1.7% to reach 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, exceeding the 20-day average of 17.66 billion. The S&P 500 recorded 15 new 52-week highs and only one new low.
Corporate earnings bolster market gains
Earnings reports provided additional support to the rally. Among 304 S&P 500 companies that reported through Friday, quarterly earnings growth averaged 29.3%. Approximately 85.2% of these companies surpassed analyst expectations, according to market data provider LSEG. SpaceX rose 5.6% ahead of its first quarterly report as a public company. Meanwhile, Marriott International fell 7% after projecting a profit below analysts’ forecasts for the third quarter.
The Dow’s record-setting close marked a broad-based start to August following a challenging July for various market sectors. Technology shares had faced pressure from concerns over artificial intelligence spending, rising interest rates, and geopolitical tensions involving the U.S. and Iran. The gains on Monday brought the S&P 500 within 0.1% of its all-time high and extended the Nasdaq’s upward trajectory. Year-to-date, the Dow has increased by 10.6%, the S&P 500 by 11%, and the Nasdaq by 11.5%.