Tuesday, August 4, 2026

Wall Street delivered a broad and robust rally on Tuesday, propelled by a surge in tech and plunging energy prices. The Nasdaq paced the advance with a 2.59% jump to 26,584.992, while the S&P 500 gained 1.79% to 7,736.52 and the Dow Jones added 1.71% to close at 54,085.88. Small caps joined the broader market strength as the Russell 2000 climbed 1.85% to 3,036.975, and Gold saw steady accumulation, rising 1.10% to 4,135.3, even as the VIX edged up 4.04% to 16.5.

Sectors in focus:

• Tech and Machinery: Electronic Components & Accessories soared 8.04%, ignited by Palantir's 26.4% earnings breakout and upbeat 2026 forecast. General Industrial Machinery jumped 7.01%, heavily supported by Caterpillar's 5.7% rally on record quarterly sales tied to AI data center turbines. Lower 10-year Treasury yields (easing to 4.67%) further supported these growth groups.
• Aerospace: A strong macro environment and easing long-term inflation expectations boosted Guided Missiles & Space Vehicles (+7.90%) and Aircraft (+7.73%).
• Energy and Healthcare Laggards: WTI Crude plummeted 6.32% to 75.26 after Treasury Secretary Scott Bessent signaled an imminent deal with Iran to reopen the Strait of Hormuz. This geopolitical de-escalation sent Natural Gas Transmission & Distribution down 4.94%. Home Health Care Services fell to the bottom of the board, shedding 6.62%.

On the radar: After a narrowing trade deficit and a resilient JOLTS report showing 7.4 million job openings, investors now look to a critical stretch of labor metrics:

• Aug 5: ADP Private Payrolls (July)
• Aug 6: Weekly Initial Jobless Claims and major earnings from Microchip Technology (MCHP) and Airbnb (ABNB)
• Aug 7: BLS Employment Situation (Nonfarm Payrolls & Unemployment Rate)
• Aug 11–12: NFIB Small Business Optimism Index, followed by July's Consumer Price Index (CPI)