The S&P 500 increased by approximately 0.9% to hit an all-time intraday high, while the Nasdaq Composite rose by 1%. The Dow Jones Industrial Average surged over 700 points, or about 1.4%, achieving a new record, thanks to significant gains in Caterpillar and other industrial stocks.
Investor confidence improved following comments from US Treasury Secretary Scott Bessent, who stated that Washington was in discussions with Iran and that a deal to reopen the Strait of Hormuz could materialize “today or tomorrow.” His remarks led to a rapid decline in oil prices, with US West Texas Intermediate crude dropping about 5% to around $76 per barrel, and Brent crude slipping roughly 4% to nearly $80, alleviating fears of energy supply disruptions.
Corporate earnings also supported the market uplift. Palantir Technologies soared more than 20% after surpassing quarterly expectations, while Caterpillar rose about 10%-12% due to quarterly sales exceeding $20 billion for the first time. Investors are keenly awaiting earnings reports from several key companies later in the day, keeping the spotlight firmly on the earnings season.
Dow, S&P 500, Nasdaq futures edge higher; Palantir, Caterpillar lead advances
US stock futures were modestly higher on Tuesday, August 4, with technology shares driving the gains as investors evaluated a fresh array of corporate earnings while also keeping an eye on ongoing uncertainties in West Asia.
Nasdaq-100 futures climbed around 0.9%, supported by a more than 16% hike in Palantir Technologies during premarket trading following the company’s stronger-than-expected second-quarter results. Other semiconductor and AI-related stocks also experienced gains, with Micron Technology rising roughly 3% and Marvell Technology increasing about 7%.
S&P 500 futures nudged up 0.2%, while Dow Jones Industrial Average futures advanced approximately 0.7%, bolstered by a 6% increase in Caterpillar after the industrial equipment manufacturer released better-than-anticipated quarterly earnings.
The gains came after a robust session on Monday, during which the Dow closed at a record high due to easing oil prices positively affecting investor sentiment. Technology stocks remained in the spotlight after Amazon’s market capitalization surpassed the $3 trillion threshold, reflecting ongoing optimism surrounding artificial intelligence amid heightened capital expenditures. Investors are now preparing for another busy earnings day, with Advanced Micro Devices (AMD), McDonald’s, Spotify, and Caterpillar presenting their reports. The markets also have their eyes on SpaceX’s first quarterly earnings report since its June public listing, as the stock faced pressure following its market debut.
In the meantime, geopolitical issues continued to capture investors’ attention. Markets are processing mixed signals regarding US-Iran negotiations after President Donald Trump stated he had called off a planned large-scale military strike on Iran to allow for diplomacy to proceed.
Tehran has denied the existence of direct talks, prompting Trump to label Iran as “unbelievably duplicitous” and caution that it now has a final opportunity to strike a deal. Oil prices remained elevated as investors assessed the uncertain landscape.
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