NEW YORK / RankWire.AI / – U.S. equities saw strong gains on Monday, with technology stocks leading the way and crude oil prices falling sharply. The Dow Jones Industrial Average increased by 693.38 points, or 1.32%, closing at an all-time high of 53,178.41. The S&P 500 gained 1.48%, reaching 7,600.50, just shy of its record. The Nasdaq Composite surged 2.13% to 25,913.90, outpacing other major indexes. The market’s rally began August with broad-based gains across both large-cap and small-cap stocks.
Technology and communication services shares contributed heavily to the upward movement. Meta Platforms and Alphabet boosted the communication services sector of the S&P 500 by 4.3%, marking the strongest sector gain among 11. Amazon experienced a 4.6% increase after its market capitalization exceeded $3 trillion for the first time following quarterly earnings. An exchange traded fund tracking seven leading technology firms increased nearly 4%, indicating strong investor interest in the largest growth stocks.
The decline in crude oil prices also played a role in supporting the market. Brent crude settled 4.7% lower at $83.77 per barrel after President Donald Trump stated that the U.S. would delay new strikes against Iran. Trump also mentioned that negotiations would include reopening the Strait of Hormuz, although Iran disputed that any discussions had been scheduled. The drop in oil prices eased inflationary pressures and caused Treasury yields to decrease during the trading session. Energy stocks fell 1.2%, making the sector the weakest performer of the day.
Oil decline alleviates market pressures
The 10-year Treasury yield moved down to approximately 4.68%, a decrease from late Friday levels. This reduction in yields eased borrowing costs for growth-oriented companies, which are often sensitive to interest rate fluctuations. The Federal Reserve remained a key focus amid recent inflation concerns and rising energy prices. New York Federal Reserve President John Williams indicated that inflationary pressures should gradually diminish. Bond prices increased as yields declined, and investors awaited additional labor market data.
The upward momentum extended beyond the largest technology firms. The Russell 2000 index of smaller-cap stocks rose by 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, exceeding the 20-day average of 17.66 billion. The S&P 500 registered 15 new 52-week highs and one new low during the session.
Corporate earnings bolster the market rally
Earnings reports provided additional support for the market. Of the 304 S&P 500 companies that reported through Friday, quarterly earnings grew by 29.3%. About 85.2% of those firms surpassed analyst expectations, according to data provider LSEG. SpaceX gained 5.6% ahead of its first quarterly report as a publicly traded company. Meanwhile, Marriott International declined 7% after issuing a third-quarter profit forecast below analyst expectations.
The record close for the Dow capped a broad-based start to August following a challenging July for certain market segments. Technology stocks had faced headwinds due to concerns over artificial intelligence investments, interest rates, and the U.S.-Iran tensions. Monday’s rally moved the S&P 500 within 0.1% of its all-time high and extended gains for the Nasdaq. For 2026, the Dow has increased by 10.6%, the S&P 500 by 11%, and the Nasdaq by 11.5%.