Middle East Tensions Ease, Boosting US Stocks to Historic Highs
The stock market rallied on its first trading day in August as tensions in the Middle East eased and investors became more optimistic about big tech earnings.
The Dow Jones Industrial Average rose by 693.38 points, or 1.32%, to close at 53,178.41. The S&P 500 gained 110.78 points, or 1.48%, to 7,600.50, while the Nasdaq Composite jumped 540.04 points, or 2.13%, to 25,913.90.
The largest driver of market performance was the de-escalation in the Middle East, where President Trump's decision to cancel plans for a strike on Iran sent oil prices plummeting and risk appetite soaring. The Philadelphia Semiconductor Index also advanced 1.05% to 11,430.35.
Mega-cap technology stocks led the rally, with Amazon rising by 4.58% and pushing its market capitalization above $3 trillion for the first time. Microsoft gained 4.93%, Meta advanced 6.02%, and Alphabet climbed 4.44%. However, Apple fell about 1.8%, making it the weakest performer among large caps.
The Federal Aviation Administration's approval of the airworthiness certification for the Boeing 737 Max 7 also boosted shares in the company, which rose by 8% to become the largest gainer in the Dow.