The Dow Jones Industrial Average closed at a record high on Tuesday, gaining 907 points, after oil prices fell sharply on expectations that the Strait of Hormuz could reopen within days.
The S&P 500 also finished at a record, its first since June. Both moves followed remarks by Treasury Secretary Scott Bessent that a United States agreement with Iran could be reached within a day.
How far did markets move?
The Dow rose 907.47 points, or 1.71 per cent, to 54,085.88. CNBC reported the S&P 500 gained 1.79 per cent to close at 7,736.52 and the Nasdaq Composite rose 2.59 per cent to 26,584.99.
It was the Dow’s strongest session in nearly two months and among the largest single-day advances for the S&P 500 this year.
| Index | Move | Close |
|---|---|---|
| Dow Jones Industrial Average | +1.71% | 54,085.88 |
| S&P 500 | +1.79% | 7,736.52 |
| Nasdaq Composite | +2.59% | 26,584.99 |
| WTI crude | -5.69% | $75.77 |
| Brent crude | -5.26% | $79.36 |
Why did the stock market rise on 4 August 2026?
United States equity markets rose sharply on Tuesday 4 August 2026, with the Dow Jones Industrial Average closing up 907.47 points, or 1.71 per cent, at a record 54,085.88, and the S&P 500 gaining 1.79 per cent to a record close of 7,736.52. The Nasdaq Composite added 2.59 per cent to 26,584.99. The rally was driven principally by a fall in oil prices after US Treasury Secretary Scott Bessent said an agreement with Iran to reopen the Strait of Hormuz could be reached within a day, easing supply concerns. West Texas Intermediate crude settled 5.69 per cent lower at $75.77 a barrel and Brent fell 5.26 per cent to $79.36. Strong quarterly earnings from McDonald’s, Pfizer and Caterpillar reinforced the move.
What led the gains?
Technology stocks rose about 4 per cent. Palantir Technologies climbed 29 per cent and Caterpillar gained more than 5 per cent, passing its intraday record from last month after raising its full-year sales outlook.
Semiconductor and software funds tracked the move, with the iShares Semiconductor ETF up more than 6 per cent. Industrials and materials each rose close to 2 per cent, and financials added 0.9 per cent. Energy and utilities closed lower as crude fell.
McDonald’s and Pfizer both beat expectations, the latter reporting adjusted earnings of 77 cents a share on revenue of $15.03bn.
What else moved the picture?
The US trade deficit narrowed to $73.3bn in June from $77.6bn a month earlier. Imports fell 1.8 per cent to $388bn and exports declined 0.9 per cent to $314.7bn, a four-month low.
Paul Hickey of Bespoke Investment Group said several catalysts had combined rather than a single event, adding that such conditions tend to sustain a move.
Gains continued more modestly on Wednesday, with South Korea’s Kospi rising almost 4 per cent after its heavy fall at the start of the week.
How durable is the move?
The rally rests on a diplomatic outcome that has not been reached. Brent settled above $100 as recently as 23 July, and previous announcements of an imminent Hormuz agreement have been followed by renewed fighting rather than reopening.
Shipping analysts remain more cautious than the Treasury on how quickly tanker traffic would recover even if a deal is signed, with crossings still sharply constrained. A collapse in the talks would put the risk premium straight back into crude.
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Sources for this report
The Redline News Desk
The Redline News desk files and edits world reporting. Every story carries the sources it was built from, and corrections are published on the story itself.
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