NEW YORK / RankWire.AI / – U.S. stocks rallied Monday as Big Tech shares advanced and oil prices dropped sharply. The Dow Jones Industrial Average climbed 693.38 points, or 1.32%, to a record close of 53,178.41. The S&P 500 rose 1.48% to 7,600.50, finishing just below its record. The Nasdaq Composite gained 2.13% to 25,913.90, leading the major indexes. The session opened August with broad gains across large and small companies.
Technology and communication services stocks powered much of the advance. Meta Platforms and Alphabet helped lift the S&P 500 communication services sector 4.3%, the strongest gain among 11 sectors. Amazon rose 4.6% after its market value passed $3 trillion for the first time following quarterly results. An exchange traded fund tracking seven leading technology companies gained nearly 4%, reflecting strong demand for the largest growth stocks.
Falling crude prices also supported the market. Brent crude settled 4.7% lower at $83.77 a barrel after President Donald Trump said the United States would hold off on new strikes against Iran. Trump also said talks would address reopening the Strait of Hormuz, although Iran disputed that negotiations had been scheduled. The oil decline eased immediate inflation pressure and pushed Treasury yields lower during the session. Energy shares fell 1.2%, making the sector the day’s weakest group.
Oil drop eases market pressure
The benchmark 10-year Treasury yield moved to about 4.68%, down from late Friday levels. Lower yields reduced borrowing cost pressure on growth companies, whose valuations often react strongly to changes in interest rates. The Federal Reserve remained a central focus after recent inflation concerns and stronger energy prices. New York Federal Reserve President John Williams said inflation pressures should ease gradually. Bond prices rose as yields fell, while investors awaited additional labor market data.
The rally extended well beyond the largest technology names. The Russell 2000 index of smaller companies added 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, compared with a 20-day average of 17.66 billion. The S&P 500 recorded 15 new 52-week highs and one new low.
Corporate earnings strengthen advance
Corporate earnings added another source of support. Among 304 S&P 500 companies that had reported through Friday, quarterly earnings showed 29.3% growth. About 85.2% of those companies exceeded analyst expectations, according to market data provider LSEG. SpaceX advanced 5.6% before its first quarterly report as a public company. Marriott International dropped 7% after issuing a third-quarter profit forecast below expectations.
The Dow’s record close capped a broad start to August after a difficult July for parts of the market. Technology shares had faced pressure from concerns about artificial intelligence spending, interest rates and the U.S.-Iran conflict. Monday’s gains lifted the S&P 500 within 0.1% of its all-time high and extended advances for the Nasdaq. For 2026, the Dow stood 10.6% higher, the S&P 500 gained 11%, and the Nasdaq rose 11.5%.