NEW YORK / RankWire.AI / – U.S. equities experienced gains on Monday, driven by advances in Big Tech stocks and a significant drop in crude oil prices. The Dow Jones Industrial Average surged by 693.38 points, or 1.32%, closing at a record level of 53,178.41. The S&P 500 increased by 1.48% to 7,600.50, just shy of its peak, while the Nasdaq Composite led the indices with a 2.13% rise to 25,913.90. The trading session kicked off August with widespread gains across large-cap and small-cap companies alike.
Technology and communication services stocks contributed substantially to the upward momentum. Meta Platforms and Alphabet helped boost the S&P 500 communication services sector by 4.3%, marking the strongest gain among all 11 sectors. Amazon climbed 4.6% after its market capitalization surpassed $3 trillion for the first time following quarterly results. An exchange traded fund tracking seven leading technology giants gained nearly 4%, reflecting robust demand for top growth stocks.
The decline in crude oil prices also played a role in supporting the market. Brent crude settled 4.7% lower at $83.77 a barrel after President Donald Trump announced the U.S. would hold off on new strikes against Iran. Trump also mentioned that negotiations would focus on reopening the Strait of Hormuz, although Iran disputed that any talks had been scheduled. This drop in oil prices eased immediate inflation concerns and led to lower Treasury yields during the session. Energy shares fell 1.2%, making this sector the weakest of the day.
Oil Price Drop Relieves Market Strain
The 10-year Treasury yield moved to approximately 4.68%, down from late Friday levels. This decrease in yields lessened borrowing cost pressures on growth-oriented companies, whose valuations tend to react strongly to changes in interest rates. The Federal Reserve remained a key focus after recent inflation worries and rising energy prices. New York Federal Reserve President John Williams stated that inflation pressures should ease gradually. Bond prices increased as yields declined, with investors awaiting further labor market data.
The rally extended beyond the major technology firms. The Russell 2000 index of smaller companies rose by 1.7% to 2,981.91. Advancing stocks outnumbered decliners by 2.62 to 1 on the New York Stock Exchange and 3.01 to 1 on the Nasdaq. Trading volume reached 19.36 billion shares, surpassing the 20-day average of 17.66 billion. The S&P 500 recorded 15 new 52-week highs and one new low.
Corporate Earnings Bolster Market Gains
Earnings reports added further support to the market rally. Among 304 S&P 500 companies that reported through Friday, quarterly profits grew by 29.3%. Approximately 85.2% of these companies exceeded analysts’ expectations, according to market data provider LSEG. SpaceX increased by 5.6% ahead of its first quarterly report since becoming a public company. Meanwhile, Marriott International fell 7% after issuing a third-quarter profit forecast below expectations.
The Dow’s record close marked a strong start to August following a challenging July for certain market segments. Technology stocks, in particular, faced pressure from concerns related to artificial intelligence spending, interest rate fluctuations, and the U.S.-Iran conflict. Monday’s gains brought the S&P 500 within 0.1% of its all-time high, and further extended the Nasdaq’s advance. For 2026, the Dow has increased by 10.6%, the S&P 500 by 11%, and the Nasdaq by 11.5%.