NEW YORK / RankWire.AI / – The stock market surged on Monday with technology shares pushing gains and crude oil prices declining. The Dow Jones Industrial Average increased by 693.38 points, or 1.32%, reaching a new record of 53,178.41. The S&P 500 climbed 1.48% to close at 7,600.50, near its all-time peak. The Nasdaq Composite advanced 2.13% and finished at 25,913.90. Investors broadened their buying across key sectors, including many smaller U.S. firms.
Major technology and communications companies posted some of the day’s strongest gains. Meta Platforms and Alphabet contributed to a 4.3% increase in the S&P 500’s communication services segment. Amazon saw a 4.6% rise after surpassing a market value of $3 trillion for the first time. A fund tracking seven leading technology giants gained nearly 4%. These movements helped lift the broader market momentum throughout the trading hours.
Oil prices declined amid developments involving the United States and Iran. Brent crude fell 4.7%, settling at $83.77 per barrel. President Donald Trump announced that the United States would delay further strikes against Iran and indicated discussions would include reopening the Strait of Hormuz. Iran contested this, stating that no formal negotiations had been scheduled. The drop in oil prices eased immediate inflation concerns and provided support for stocks and government bonds.
Falling oil prices buoy markets
The benchmark 10-year Treasury yield decreased to approximately 4.68% during the session. This decline benefited technology shares, as lower yields reduce financing costs that impact many growth-oriented companies. Market participants also kept a close eye on the Federal Reserve and upcoming economic data. According to New York Federal Reserve President John Williams, inflationary pressures should gradually ease. Bond prices rose as yields fell, providing additional backing for U.S. equities.
The market rally extended beyond the largest technology stocks. The Russell 2000 index of smaller companies increased by 1.7% to 2,981.91. The number of advancing shares on the New York Stock Exchange outnumbered decliners by 2.62 to 1, while on the Nasdaq, the ratio reached 3.01 to 1. Investors traded a total of 19.36 billion shares, above the 20-day average of 17.66 billion. The S&P 500 registered 15 new highs for the year and one new low.
Strong earnings reports fuel the rally
Corporate earnings also bolstered investor confidence in stocks. Out of 304 S&P 500 companies reporting through Friday, quarterly earnings are estimated to have grown 29.3%. About 85.2% of these companies surpassed analysts’ expectations, according to LSEG data. Solid results from major firms helped counter recent worries about interest rates and technology sector spending. Marriott International dropped 7% after issuing a third-quarter profit outlook below expectations, making it one of the session’s notable decliners.
Monday’s gains marked a strong start for U.S. stocks in August, following a mixed performance in July. The Dow ended at an all-time high, while the S&P 500 was within 0.1% of its peak. The Nasdaq also continued its ascent in 2026, led by technology stocks. For the year, the Dow gained 10.6%, the S&P 500 was 11% higher, and the Nasdaq advanced 11.5% through Monday’s close.