The S&P 500 closed at a record high on Tuesday, as investors welcomed strong corporate results and a rebound in technology stocks, while focusing on hopes for progress on reopening the Strait of Hormuz.

The index climbed 1.79% to 7,737 points, its first closing peak in two months and above the prior record set in early June. The Dow Jones Industrial Average gained more than 900 points, or 1.71%, to finish above 54,000 for the first time, extending a run of consecutive all-time highs after it reached a record on Monday for the first time in a month.

The Nasdaq Composite rose 2.59%. It remains about 2% below its record level from early June, after recovering from a summer slump.

Earnings Lift Stocks and Tech Rebounds

The move comes as Wall Street digests the latest round of quarterly earnings and reassesses how artificial intelligence is affecting different parts of the market. Despite earlier nerves about AI this summer, investors have rotated across sectors and bought into weakness in selected large technology and software names.

Tuesday marked the S&P 500’s best session since April, while the Dow recorded its strongest day in almost two months. The Nasdaq’s surge was its best day since last week.

By late Tuesday, the focus also included developments in the Middle East after US Treasury Secretary Scott Bessent told CNBC that he expects a deal to open the Strait of Hormuz could be reached “today or tomorrow”.

Oil prices fell sharply after the comments. Brent crude, the global benchmark, dropped about 5.3% to settle at $79.36 a barrel, its lowest close since July 10.

Strait of Hormuz Hopes Ease Oil and Inflation Fears

Traders leaned on Bessent’s remarks, though they continued to monitor how Washington and Tehran respond. Qatar’s Foreign Ministry said efforts to resolve the conflict were in “very progressive stages”.

Market participants have also been watching shipping activity in and out of the Strait of Hormuz as a gauge of whether oil flows are returning. With oil lower, concerns about inflation appeared to ease, and US Treasury yields pulled back after rising sharply last week.

Investors are also factoring in the start of Kevin Warsh’s tenure as Federal Reserve chair, alongside expectations that stubborn inflation could keep rates steady or lead to additional hikes in coming months.

From Two-Month Swoons to Record Levels

The S&P 500’s return to record levels ended a two-month period of weakness, during which the index fell by almost 5% from its early-June peak before moving sideways and then rebounding. The Nasdaq had fallen by nearly 10% from its late-July high, edging towards a technical correction as semiconductor stocks dropped and investors became selective about parts of technology.

Since a low on July 29, the Nasdaq has rallied nearly 9%, aided by a rebound in tech and AI-related stocks.

Within the Dow, Caterpillar rose 5.6% after reporting earnings and raising its forecast for annual revenue growth, citing increased demand linked to AI data-centre buildouts that support construction and power equipment.

In year-to-date terms, the Dow is up 12.5%, the S&P 500 has gained 13% and the Nasdaq is up more than 14%.

Earnings Season Deepens Focus on AI Demand

Earnings season continues to drive sentiment. FactSet data to July 31 showed about 61% of S&P 500 companies had reported, with 86% of those beating earnings-per-share expectations.

FactSet also said companies’ earnings growth is tracking towards the strongest pace in five years based on a blended measure combining results and estimates.

Palantir jumped 29% on Tuesday, its second-biggest day on record, after reporting a surge in revenue tied to demand for AI tools.

Investors also analysed SpaceX’s first quarterly results since becoming a public company. SpaceX shares gained 9% to $125, still below the company’s IPO target price of $135.

Bank of America has warned that August to October is historically the weakest three-month period for the S&P 500, leaving investors alert to potential risks. Craig Johnson, chief market technician at Piper Sandler, said in a note that falling oil and lower yields support a “risk-on” narrative near all-time highs, but that headline risks and weaker market breadth suggest the recovery is “good, not great”.

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5 August 2026

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Checked my retirement funds this morning. Very nice.

Staking anything on 'Strait of Hormuz hopes' seems foolish until further notice.

S&P has a long way to fall sooner than later. At a level that will really surprise all.

7 minutes ago, koolkarl said:

S&P has a long way to fall sooner than later. At a level that will really surprise all.

So just keep buying great companies when they are cheap that have great moats, future earnings, profits, and reasonable debt. Adjust your stops accordingly.

This insanity cannot and will not be sustained. It's just a matter of time.

Bought a zero-fee total market index fund (basically S&P 500++) about 15 years ago. Now, my problem is how to spend the accumulated moolah.

Seriously, if you are trying to pick the next AMZN, NFLX or GOOG, good luck. Few succeed, most don't. I tried for a few years, found the experience stressful and not particularly rewarding, saw the numbers for indexing (thanks, Jack Bogle), ran a few myself, and thought why not. Put my whole little stash in one total market fund (diversification? heck, it's a total market fund isn't it?) and rolled over and went to sleep.

Now, I am trying to decide between a luxury vacation to Peru or Lithuania, first-class five-star all the way. That's this month. Next month Russia or China.

Just kidding but, seriously, if you're in the situation I was, viz., decent job, not particularly high-paying, mid-size savings, so little tolerance for loss, and not a lot of time (or the skill) for stock picking, then consider indexing. Read Jack Bogle and A Random Walk Down Wall Street and run numbers yourself. You'll see what I mean.

Edited August 5Aug 5 by Autocan

All thanks to Trumps big beautiful tariffs. Shame the forum left all dumped their portfolios in a mass flounce after the RECIPROCAL tariffs were announced. Well done to calm and sane investors that trusted DJT.

Well good old Don just made some big bucks for him and his friends, and a few that invested well, unfortunately he will do something stupid tomorrow and let the bridge crumb again. Play your cards right average Joe.

This time it's different .....!!!!!

21 hours ago, spidermike007 said:

This insanity cannot and will not be sustained. It's just a matter of time.

Yes. I really fear what a crash would look like - how big would it be, 50% drop? And its aftermath.

I’ve never seen the markets this volatile for this long. Grateful that the overall trend is up and that I don’t need to cash in anytime soon. Still, with The Mad King running things, I’m as nervous as a long tailed cat in a room full of rocking chairs. 😝

1 hour ago, ronnie50 said:

Yes. I really fear what a crash would look like - how big would it be, 50% drop? And its aftermath.

At least 50%, under fairly normal circumstances, and I think there's a good possibility if things really blow up and things really fall apart, that the doubt could drop to as low as 5,000. An awful lot of paper fortunes would be wiped out as most people just wouldn't see it coming.

20 minutes ago, spidermike007 said:

At least 50%, under fairly normal circumstances, and I think there's a good possibility if things really blow up and things really fall apart, that the doubt could drop to as low as 5,000. An awful lot of paper fortunes would be wiped out as most people just wouldn't see it coming.

I was refreshing myself about 1929 crash. In first five days the market tumbled by 25% due to panic selling. But, just like today's bullish brokers like to say, many saw it as a 'buying opportunity'. Unfortunately, those who thought they were buying on the cheap after the first five days eventually lost their shirts as the market didn't reach reach its lowest point until 1932 - a combined painful decline of 90% from its 1929 peak. Life savings were lost - unemployment hit 25%.

1 hour ago, ronnie50 said:

I was refreshing myself about 1929 crash. In first five days the market tumbled by 25% due to panic selling. But, just like today's bullish brokers like to say, many saw it as a 'buying opportunity'. Unfortunately, those who thought they were buying on the cheap after the first five days eventually lost their shirts as the market didn't reach reach its lowest point until 1932 - a combined painful decline of 90% from its 1929 peak. Life savings were lost - unemployment hit 25%.

And so many are convincing themselves that that could never happen again that safeguards have been put into place and that the market functions more efficiently than it previously did.

And yet look at 2007. The banks were lending just as recklessly up to a few years ago and that was after that debacle. So much of the stock run up has been related to AI and tech stocks and even a lot of experts don't think that's sustainable. The accumulated deficit is that an all-time high, and it's likely considerably higher than the numbers they are putting out there. Consumer confidence is at an all-time low, inflation is still kicking despite the fake government numbers, and I can't help but think that there is trouble brewing on the horizon.

If I were heavily invested in the markets I would take my money and run right now.

26 minutes ago, spidermike007 said:

If I were heavily invested in the markets I would take my money and run right now.

Me too.

On 8/5/2026 at 11:28 AM, Autocan said:

Bought a zero-fee total market index fund (basically S&P 500++) about 15 years ago. Now, my problem is how to spend the accumulated moolah.

Seriously, if you are trying to pick the next AMZN, NFLX or GOOG, good luck. Few succeed, most don't. I tried for a few years, found the experience stressful and not particularly rewarding, saw the numbers for indexing (thanks, Jack Bogle), ran a few myself, and thought why not. Put my whole little stash in one total market fund (diversification? heck, it's a total market fund isn't it?) and rolled over and went to sleep.

Now, I am trying to decide between a luxury vacation to Peru or Lithuania, first-class five-star all the way. That's this month. Next month Russia or China.

Just kidding but, seriously, if you're in the situation I was, viz., decent job, not particularly high-paying, mid-size savings, so little tolerance for loss, and not a lot of time (or the skill) for stock picking, then consider indexing. Read Jack Bogle and A Random Walk Down Wall Street and run numbers yourself. You'll see what I mean.

Mine doubled in 5 to 6 yrs.

Enjoy.

2 hours ago, spidermike007 said:

At least 50%, under fairly normal circumstances, and I think there's a good possibility if things really blow up and things really fall apart, that the doubt could drop to as low as 5,000. An awful lot of paper fortunes would be wiped out as most people just wouldn't see it coming.

The doom and gloom from those who didn't invest in a retirement fund.

22 minutes ago, ronnie50 said:

Me too.

Wise. Just look at the PE ratios of the 3 main indices. Mid 20s for S&P and DJ and Nasdaq close to 30. It is a casino.

I ran my numbers through AI and it calculated (very roughly, obviously) if I'd not paid NI but put those payments into the stock market I would have a pension pot of around £2.5 -£3 million.

I now have to live to 130 to "break even"

Pam Bondi must be beside herself at this news.

7 minutes ago, EVENKEEL said:

The doom and gloom from those who didn't invest in a retirement fund.

I have a good corporate retirement fund - including global healthcare - premiums paid 50/50 with my former employer (for life). Cash in the bank in a few countries. And when I hit 67 I'll get another state-funded pension that I paid into for 30 years. Not missing the stock markets at all.

6 minutes ago, ronnie50 said:

I have a good corporate retirement fund - including global healthcare - premiums paid 50/50 with my former employer (for life). Cash in the bank in a few countries. And when I hit 67 I'll get another state-funded pension that I paid into for 30 years. Not missing the stock markets at all.

Is the corporate retirement fund not invested in the stock market?

2 minutes ago, MIke B Bad said:

Is the corporate retirement fund not invested in the stock market?

Partially. Yes - but it is quite a conservative fund.

Look, I'm not against stock markets at all. I've invested in stocks before.

Our conversation above is that now is the time to bail. Take your big profits and run like your hair's on fire. Alternatively, take out what you need by estimating what you were expecting/hoping it woulld get up to (and what you know you will need going forward) then leave the rest in as a gamble to see if it goes higher (easy come easy go).

12 minutes ago, ronnie50 said:

Partially. Yes - but it is quite a conservative fund.

Look, I'm not against stock markets at all. I've invested in stocks before.

Our conversation above is that now is the time to bail. Take your big profits and run like your hair's on fire. Alternatively, take out what you need by estimating what you were expecting/hoping it woulld get up to (and what you know you will need going forward) then leave the rest in as a gamble to see if it goes higher (easy come easy go).

I've taken half of each of the big US funds (big for me) that have rocketed......one by 95% over the last two years......and diversified into global and European. I'm fortunate in that I can live off my pensions and rental incomes, so even if there is a correction I can wait it out.

Edited August 6Aug 6 by MIke B Bad