Dow Smashes Through July High on Tech-Fueled Rally

The Dow Jones Industrial Average closed at a record high on Monday as Wall Street began August with a broad rally. The rally was led by major technology stocks and a sharp decline in oil prices following signs of easing geopolitical tensions in the Middle East.

The Dow rose about 693 points, or 1.3%, surpassing its previous record closing high from July. The S&P 500 gained 1.5%, moving closer to its all-time high reached in early June, while the Nasdaq Composite advanced 2.1%.

The rally marked a reversal from July, when technology stocks came under pressure amid concerns over heavy spending on artificial intelligence infrastructure and uncertainty surrounding Federal Reserve policy.

Market sentiment improved after stronger-than-expected corporate earnings helped restore confidence that investments in AI infrastructure are beginning to deliver financial returns. Communication services was the best-performing S&P 500 sector, rising more than 4%, while technology shares also posted strong gains.