NEW YORK / RankWire.AI / – U.S. equities surged on Monday, with technology shares leading gains and crude oil prices declining. The Dow Jones Industrial Average soared 693.38 points, or 1.32%, reaching an all-time high of 53,178.41. The S&P 500 increased by 1.48% to close at 7,600.50, nearly touching its record peak. Meanwhile, the Nasdaq Composite rose 2.13% and finished at 25,913.90. Broad buying activity was evident across major sectors, including many smaller U.S. companies.
Leading the gains were large technology and communication firms. Meta Platforms and Alphabet drove the communication services sector of the S&P 500 up by 4.3%. Amazon saw a 4.6% increase after surpassing a market value of $3 trillion for the first time. A fund tracking seven major tech firms gained nearly 4%, propelling the overall market higher throughout the trading session.
Crude oil prices declined amid developments involving the United States and Iran. Brent crude fell 4.7%, settling at $83.77 a barrel. President Donald Trump announced that the U.S. would delay further strikes against Iran, adding that talks might include reopening the Strait of Hormuz. Iran denied that formal negotiations had been scheduled. The drop in oil prices eased inflation concerns, providing support for stocks and government bonds alike.
Falling oil costs bolster market confidence
During the session, the benchmark 10-year Treasury yield declined to around 4.68%. This drop helped boost technology stocks, as lower yields reduce financing costs for growth-oriented companies. Investors continued to monitor the Federal Reserve and incoming economic reports. New York Federal Reserve President John Williams indicated that inflation pressures are expected to ease gradually. Rising bond prices, due to declining yields, offered additional backing for U.S. equities.
The rally extended beyond the technology sector. The Russell 2000 index of smaller companies increased by 1.7% to reach 2,981.91. Advancing stocks outnumbered decliners on the New York Stock Exchange by 2.62 to 1, while on the Nasdaq, the ratio was 3.01 to 1. The total U.S. trading volume surpassed 19.36 billion shares, above the 20-day average of 17.66 billion. The S&P 500 posted 15 new highs for the year and one new low.
Corporate earnings bolster investor optimism
Earnings reports further strengthened investor confidence in equities. Out of 304 S&P 500 companies reporting through Friday, quarterly earnings are estimated to have increased by 29.3%. Approximately 85.2% of these firms beat analyst expectations, according to LSEG data. Strong performances from major corporations helped offset recent worries over interest rates and technology expenditures. Notably, Marriott International declined 7% after issuing a third-quarter profit outlook below market expectations, marking one of the session’s notable losers.
Monday’s positive momentum marked a solid start to August for U.S. stocks, following a mixed July. The Dow closed at a record high, while the S&P 500 was within 0.1% of its peak. The Nasdaq continued its upward trajectory into 2026, led by technology stocks. For the year, the Dow has gained 10.6%. The S&P 500 increased by 11%, and the Nasdaq advanced 11.5% through Monday’s close.