Tech Earnings and Iran Deal Hopes Fuel Wall Street Rally to Record Highs

The US stock market closed at record highs on Tuesday, August 4, 2026, due to strong corporate earnings and hopes for a Middle East deal. The Dow Jones Industrial Average gained 907.47 points, or 1.71%, to 54,085.88, while the S&P 500 climbed 1.79% to 7,736.52.

Technology stocks were among the biggest winners, with Palantir Technologies surging 29.5% after raising its annual revenue forecast and reporting a 93% year-over-year increase in quarterly revenue. The company's results eased concerns that heavy AI spending may not produce strong financial returns, encouraging investors to return to growth stocks.

Chip stocks also delivered strong gains, with the Philadelphia Semiconductor Index jumping 6.6%. Nvidia gained 2.6%, Broadcom rose 6.6%, and Micron Technology climbed 7.6%.

Lower oil prices added another layer of support, falling about 5% as diplomatic efforts continued to ease tensions in the Middle East. The price drop reduced immediate concerns about inflation and interest rates, making stocks more attractive relative to bonds.