NEW YORK / RankWire.AI / – On Monday, Wall Street experienced a significant rise fueled by gains in the technology sector and a drop in crude oil prices. The Dow Jones Industrial Average surged by 693.38 points, equivalent to 1.32%, reaching a new high of 53,178.41. Meanwhile, the S&P 500 increased by 1.48% to close at 7,600.50, nearly touching its all-time peak. The Nasdaq Composite also advanced by 2.13%, ending at 25,913.90. Across major industries, buying activity was widespread, including numerous smaller U.S. firms.
Key contributors to the session’s positive momentum were large technology and communication firms. The sectors benefited from notable gains by Meta Platforms and Alphabet, which helped push the S&P 500’s communication services sector up by 4.3%. Amazon’s stock rose by 4.6% after surpassing a market value of $3 trillion for the first time. Additionally, a fund tracking seven major technology giants increased nearly 4%. These movements contributed to the broader market’s upward trend throughout the trading session.
Crude oil prices declined as markets reacted to developments involving the United States and Iran. Brent crude fell by 4.7%, settling at $83.77 per barrel. President Donald Trump announced that the U.S. would postpone further strikes against Iran and mentioned negotiations on reopening the Strait of Hormuz. Iran, however, contested the scheduling of any formal talks. This drop in oil prices eased immediate inflationary pressures and supported stocks and government bonds alike.
Falling oil prices bolster market sentiment
During trading, the 10-year Treasury yield decreased to approximately 4.68%, helping to support technology shares by lowering financing costs that influence growth-oriented companies. Investors remained attentive to the Federal Reserve and economic data releases. Federal Reserve Bank of New York President John Williams indicated that inflationary pressures are expected to ease gradually. Bond prices increased as yields fell, providing additional backing for U.S. equities.
The upward movement extended beyond the largest technology firms. The Russell 2000 index, representing smaller businesses, rose 1.7% to reach 2,981.91. On the New York Stock Exchange, advancers outnumbered decliners by 2.62 to 1, while on the Nasdaq, the ratio was 3.01 to 1. U.S. trading volume exceeded 19.36 billion shares, surpassing the 20-day average of 17.66 billion. The S&P 500 posted 15 new highs for the year and one new low.
Strong earnings reports bolster the rally
Earnings reports from corporations also contributed to investor enthusiasm for equities. Up to Friday, 304 S&P 500 companies had reported, with quarterly earnings estimated to have grown by 29.3%. Around 85.2% of these companies beat analysts’ expectations, according to LSEG data. Results from major corporations helped offset recent worries over interest rates and technology spending. One notable decliner was Marriott International, which dropped 7% after issuing a third-quarter profit forecast below market expectations.
Monday’s gains marked a strong start for U.S. stocks in August following a mixed performance in July. The Dow reached a record high, while the S&P 500 closed within 0.1% of its peak. The Nasdaq continued its upward trend in 2026, with technology stocks leading the way. For the year, the Dow increased by 10.6%, the S&P 500 by 11%, and the Nasdaq by 11.5% as of Monday’s close.