Today's rally has a different texture from yesterday's. Where Monday leaned on a single catalyst — the oil-price plunge — Tuesday's advance was broader and sturdier, combining earnings beats from Caterpillar and Palantir with a coordinated rebound across large-cap semiconductors including Intel, Arm, and Micron. Caterpillar's first-ever quarter above $20 billion in revenue is a particularly concrete data point for the 'Big Tech capex is spilling into the real economy' narrative, given the demand was tied to power and construction equipment for AI data centers. Two things are worth flagging, though. First, SpaceX fell 7% in after-hours trading despite beating revenue estimates, as its nearly $18.4 billion in quarterly capex reawakened investor unease about the pace of AI-related spending. Second, Amazon dropped 2.32% on news of Jeff Bezos's planned $4 billion share sale — a pre-scheduled 10b5-1 transaction unrelated to fundamentals, but a natural psychological pullback after a nearly 20% two-day surge. The Fear & Greed Index climbing to 58 ('Greed') signals growing conviction in the rally, but it's also a caution flag against overheating.
📊 Top Movers
🧭 Sector Performance
🇰🇷 Korean Investor Perspective
Today's standout for Korean investors is Micron's (MU) +7.62% surge — as a direct memory-market competitor to SK Hynix, its strength is a favorable read-through, and fittingly five new AI/semiconductor-themed ETFs launched in Korea on the same day. USD/KRW fell 6.35 won to 1,429.35 (won strength), meaning a meaningful chunk of the Nasdaq's 2.59% gain was offset by currency for unhedged Korean retail investors ('seohak-gaemi') in US stocks — their won-denominated returns likely trailed the headline index move. Popular broad ETFs like QQQ and SPY likely rose roughly in line with their indexes, while semiconductor-heavy funds such as SOXX and SMH — with large weightings in Intel and Arm — probably posted considerably larger gains.
📊 Market Overview
U.S. stocks notched fresh record highs on Tuesday, August 4, 2026, powered by a broad rebound in large-cap semiconductors and a wave of earnings beats. The S&P 500 climbed 136.02 points (+1.79%) to close at 7,736.52, its first record close in two months. The Nasdaq Composite surged 671.09 points (+2.59%) to 26,584.99, while the Dow Jones Industrial Average jumped 907.47 points (+1.71%) to 54,085.88, closing above 54,000 for the first time ever.
Unlike Monday, which leaned on a single catalyst — the oil-price plunge — Tuesday's gains were far broader, combining earnings surprises from Caterpillar and Palantir with a simultaneous rally across Intel, Arm, Micron, and Qualcomm. The Philadelphia Semiconductor Index (SOX) clawed back more than 60% of its July decline in just four trading sessions. Amazon was the notable exception, falling 2.32% on news of Jeff Bezos's $4 billion planned share sale, a natural profit-taking pause after nearly a 20% two-day surge.
🔑 Key Issues
1. Semiconductors rally in unison, SOX recovers most of July's losses Arm Holdings surged 17.36%, the day's top gainer, after JPMorgan raised its price target to $255 from $240, citing data-center royalty revenue growth exceeding 100% year-over-year for a second straight quarter. Intel jumped 10.84% to break above $100, boosted by accelerated construction of its new Ohio fab and a raised 2026 capex plan of $20 billion (up from $18 billion). Micron (+7.62%), Qualcomm (+7.32%), Broadcom (+6.61%), and AMD (+7.00%) also rallied.
2. Caterpillar tops $20 billion in quarterly revenue for the first time ever Caterpillar posted adjusted EPS of $8.17 (32% above the $6.19 consensus) and revenue of $20.5 billion ($19.24 billion expected, +24% YoY), crossing $20 billion in quarterly sales for the first time in company history. The company raised its full-year revenue growth outlook, citing power-generation and construction-equipment demand tied to the AI data-center buildout. Shares jumped 5.60%.
3. Palantir surges 29% on an earnings blowout Palantir reported EPS of $0.41 (beating the $0.33 consensus by 24%) and revenue of $1.94 billion ($1.80 billion expected, +93% YoY), rising 12% after hours before rallying a further 29% during Tuesday's regular session — its second-best day on record (not among our tracked/verified tickers). US commercial revenue growth of 149% year-over-year reinforced investor confidence in AI demand.
4. SpaceX beats on revenue in maiden earnings report, but falls 7% after hours on capex concerns Reporting its first quarterly results since its June IPO, SpaceX posted revenue of $7.81 billion (beating the $6.93 billion consensus, +92% YoY) and a per-share loss of $0.09 (narrower than the expected $0.26 loss). However, quarterly capex surged more than sixfold year-over-year to $18.37 billion ($15.83 billion of it AI-related), and the stock — up 9.43% during the regular session — fell roughly 7% after hours once results were released.
5. Amazon pulls back on news of Bezos's $4 billion share sale Amazon fell 2.32% after a filing disclosed Jeff Bezos plans to sell roughly 15 million shares (about $4.07 billion) under a 10b5-1 trading plan adopted in November 2025. The sale is fundamentals-neutral, but it landed amid natural profit-taking after the stock's nearly 20% two-day surge following earnings.
📊 Sector Performance
| Sector | Change | Key Driver |
|---|---|---|
| Technology | +5.19% | Coordinated semiconductor rally: Arm (+17.36%), Intel (+10.84%), Micron (+7.62%) |
| Industrials | +2.53% | Caterpillar earnings beat (+5.60%), confirmed AI data-center equipment demand |
| Financials | +1.41% | Strength in Goldman Sachs (+2.52%) and Morgan Stanley (+2.75%) |
| Consumer Staples | +0.84% | Procter & Gamble (+2.10%) strength |
| Consumer Discretionary | +0.73% | Tesla (+1.64%) gains offset by Amazon's (-2.32%) decline |
| Utilities | +0.36% | Modest gains amid improved risk appetite |
| Healthcare | +0.24% | Mixed: Gilead (+3.13%), Amgen (+2.94%) higher; UnitedHealth (-1.88%) lower |
| Communication Services | -0.95% | Verizon (-1.01%) and AT&T (-0.89%) both lower |
| Energy | -1.06% | Further ~5% oil decline weighed on Chevron and ConocoPhillips |
🌍 Global Markets
- European STOXX 600: +0.3% (~657.52); pan-European STOXX 50 +0.9%. Lufthansa (+3.8%), Ryanair (+3.3%), Airbus (+3.2%), and SAP (+3.7%) rallied, while AstraZeneca sank more than 6% on reports of a $400 billion merger approach from Bristol Myers Squibb
- US Dollar Index (DXY): 99.92
- 10-Year US Treasury Yield: around 4.65% (ranged 4.63%–4.69% intraday)
- WTI Crude Oil: $76.14 (-5.23%), extending losses on progress in Iran-Oman talks to normalize Strait of Hormuz shipping
- Gold: $4,087.14/oz (+0.79%), safe-haven demand persisting amid lingering Middle East risk
🚀 SPCX (SpaceX) Update
SpaceX closed the regular session at $125.33, up 9.43% from Monday's $114.53, as investors positioned ahead of the company's first-ever quarterly earnings report. After the close, results showed revenue of $7.81 billion, well above the $6.93 billion consensus, with a per-share loss of $0.09 that was narrower than the expected $0.26 loss. However, quarterly capex more than sextupled year-over-year to $18.37 billion (of which $15.83 billion was AI-related), and shares fell roughly 7% in after-hours trading. Cash and equivalents jumped to $93.5 billion from $24.7 billion at the end of Q1, reflecting the substantial boost from June's IPO proceeds.
⚠️ Investor Considerations
With back-to-back record-high sessions, the Fear & Greed Index has climbed to 58 ("Greed"). While the headline indexes look sturdy, the sharply divergent after-hours reactions among stocks that combined "AI-driven revenue beats" with "surging capex" — as with SpaceX — deserve attention: a strong quarter can still send shares lower if capital spending outpaces market expectations. Separately, JOLTS job openings came in at 7.359 million, below both the 7.40 million consensus and the prior month's 7.537 million, a sign of a cooling labor market that raises the stakes for Friday's July Nonfarm Payrolls report.
👁 Tomorrow's Watch Points
- Uber (UBER) earnings (Wednesday): Ride-share and delivery demand trends, along with margin progress, should shape sentiment in Consumer Discretionary.
- ISM Services PMI (July, consensus 54.5): Whether Monday's manufacturing surprise extends to services matters — a repeat beat could push back rate-cut expectations and pressure Treasury yields higher.
- SpaceX's open on Wednesday: Watch whether the after-hours 7% drop carries into the regular session, or whether bargain-hunters focus instead on the revenue beat.
- Whether the S&P 500 holds above 7,700: Having reclaimed record territory after two months, the key question is whether the rally has more room to run or whether profit-taking hits the semiconductor names.
- Lingering effects of the softer JOLTS report: Watch whether the cooling labor-market signal lowers expectations into Friday's payrolls data.
💡 Upcoming Events
- 2026-08-05: Uber (UBER) earnings, ISM Services PMI (July)
- 2026-08-06: Weekly jobless claims
- 2026-08-07: July Nonfarm Payrolls, unemployment rate — the week's biggest macro event
📚 Sources
- Stock market today: Nasdaq surges, Dow and S&P 500 trade at record highs amid US-Iran optimism, tech rally — Yahoo Finance
- Stock Market Today (Aug. 4, 2026): Record closes for S&P 500, Dow as tech comeback continues; SpaceX and AMD report earnings — TheStreet
- The S&P 500 is back at a record high and the Dow just hit 54,000 — CNN Business
- Arm Jumps More Than 11%: Data Center Royalty Growth Drives Post-Selloff Semiconductor Rally — Benzinga
- Intel Stock Up Nearly 8%: AI Growth Narrative Trumps Foundry Capex Concerns — Benzinga
- Caterpillar lifts 2026 sales growth target on strong data center demand after quarterly profit beat — CNBC
- SpaceX Exceeds Revenue Estimates in First Earnings Since IPO — Bloomberg
- Jeff Bezos just filed to sell $4 billion in Amazon. The shares are falling — CNBC
- Dow Closes at Record High, Nasdaq Surges 2%, but Fear & Greed Index Signals Investors Are Still Playing It Safe — Benzinga
- Gold prices today, Tuesday, August 4, 2026: Gold remains above $4,100 with Iran threats looming — Yahoo Finance
- WTI Crude Oil Price Analysis for August 4, 2026 — FX Daily Report
- Dow, S&P 500 Hit Record Highs as Micron Returns to Trillion-Dollar Market Cap Amid Structural AI Trade Recovery — TradingKey
- Stock Market Today, Aug. 4: S&P 500 and Dow Set New Highs on Easing Geopolitical Tensions — The Motley Fool