AI Boom Lifts S&P 500, Dow Jones to New Records Amid Oil Price Pressure

The S&P 500 and Dow Jones indices hit record highs on August 4, 2026, driven by strong corporate earnings and increased demand for artificial intelligence (AI) technology.

Caterpillar, a bellwether of the global industrial economy, rose about 12% after raising its annual revenue growth forecast, supported by demand for equipment used to build and maintain AI data centers.

Palantir Technologies climbed approximately 17.4% after raising its full-year revenue forecast, while On Semiconductor gained about 1% following its quarterly earnings outlook.

The overall rally was led by the technology sector, which partly offset a broader decline in energy stocks under pressure from falling oil prices and ongoing conflict in the Middle East.