Geopolitical Tensions Ease as Stocks Hit New Highs

The stock market closed at record highs on August 4th, driven by easing geopolitical tensions and strong earnings. The S&P 500 rose 1.79% to 7,737, setting a new high, while the Dow Jones Industrial Average climbed 1.71% to 54,086.

The Nasdaq Composite also extended its rally from Monday, rising 2.59% to 26,585. Most sectors finished in the green, with technology stocks leading the way at 4.20%, and industrials up 3.42%. Energy and utility stocks were the only laggards.

Palantir Technologies' shares surged nearly 30% on explosive growth, while Caterpillar finished the day up 5.60% after reporting record quarterly revenue. However, AdaptHealth slumped almost 40% following an earnings miss and reduced full-year earnings guidance.