NEW YORK / RankWire.AI / – U.S. stocks experienced gains on Monday, led by advances in Big Tech stocks and a sharp decline in oil prices. The Dow Jones Industrial Average surged by 693.38 points, or 1.32%, closing at a record of 53,178.41. The S&P 500 increased 1.48% to 7,600.50, just below its all-time high. The Nasdaq Composite climbed 2.13% to 25,913.90, outperforming the other major indexes. The market opened August with widespread gains across both large and small-cap stocks.
Technology and communication services stocks largely drove the upward momentum. Meta Platforms and Alphabet contributed to a 4.3% rise in the S&P 500 communication services sector, making it the strongest of the 11 sectors. Amazon gained 4.6% after its market cap exceeded $3 trillion for the first time following quarterly earnings. An exchange traded fund tracking seven leading technology firms increased nearly 4%, indicating robust demand for top growth stocks.
The decline in crude 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 that the United States would delay new strikes against Iran. Trump also mentioned that negotiations might involve reopening the Strait of Hormuz, although Iran disputed that any talks had been scheduled. This drop in oil prices alleviated immediate inflation concerns and resulted in lower Treasury yields during the session. Energy shares fell 1.2%, making the sector the weakest performer of the day.
Oil Price Drop Relieves Market Stress
The benchmark 10-year Treasury yield moved to approximately 4.68%, down from late Friday levels. This decrease in yields eased borrowing costs for growth-oriented companies, which are often highly sensitive to interest rate fluctuations. The Federal Reserve remained in focus amid 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, while investors awaited further labor market data.
The rally extended beyond just the top technology stocks. The Russell 2000 index of smaller companies gained 1.7% to 2,981.91. Advancing stocks outnumbered declining ones 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 recorded 15 new 52-week highs and one new low.
Corporate Earnings Bolster Market Advances
Earnings reports added further support to the market’s upward movement. Out of 304 S&P 500 companies that had reported through Friday, quarterly earnings grew by 29.3%. Approximately 85.2% of these firms 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 declined 7% after issuing a third-quarter profit forecast below expectations.
The Dow’s record closing price marked a strong start to August following a tough July for various market sectors. Technology stocks had faced headwinds due to concerns over artificial intelligence spending, rising interest rates, and the U.S.-Iran situation. Monday’s gains pushed the S&P 500 to within 0.1% of its all-time high and extended the Nasdaq’s upward trend. For 2026, the Dow has increased 10.6%, the S&P 500 has gained 11%, and the Nasdaq has risen 11.5%.