Dow surges 600 points as tech stocks lead August rebound

• Amazon's market cap crossed $3 trillion for the first time following strong earnings showing AWS growth acceleration, while Meta gained nearly 6% and Alphabet and Microsoft each rose around 5%
• Oil prices fell sharply—Brent crude down 5% to $83.46 and WTI down over 7% to $78.59—after President Trump called off military strikes against Iran, easing Middle East tensions and inflation concerns
• S&P 500 companies reported 29.3% year-over-year profit growth with 85.2% beating expectations, while markets now price in a 66.5% probability of a Fed rate increase in September ahead of Friday's jobs data

Market Summary: Dow Surges 600 Points on Tech Rally

Key Market Movements:

The Dow Jones Industrial Average surged 693 points (1.3%) to a record closing high on Monday, August 3, 2026. The S&P 500 gained 1.5%, approaching its early June all-time high, while the Nasdaq Composite jumped 2.1%.

Sector Performance:

Communication services led all S&P 500 sectors with a 4%+ gain, followed by technology. Energy stocks lagged as the weakest performers due to falling crude prices.

Major Company Highlights:

• Amazon (AMZN): Rose 4%, crossing $3 trillion market capitalization for the first time, driven by accelerating AWS growth
• Meta Platforms: Climbed nearly 6%
• Alphabet and Microsoft: Each gained approximately 5%
• AI-related stocks including Palantir, AMD, SanDisk, and Western Digital remained in focus

Earnings Data:

Through Friday, 304 S&P 500 companies showed aggregate profit growth of 29.3% year-over-year, with 85.2% exceeding analyst expectations—restoring confidence that AI infrastructure investments are delivering returns.

Commodities and Bonds:

Oil prices dropped sharply after President Trump called off military strikes against Iran. Brent crude fell 5% to $83.46/barrel, while WTI declined over 7% to $78.59/barrel. The 10-year Treasury yield decreased six basis points to around 4.68%.

Forward Outlook:

Investors await Friday's nonfarm payrolls data and additional labor market reports. Markets currently price in a 66.5% probability of a 25-basis-point Fed rate increase in September, according to CME FedWatch data.

The rally marks a reversal from July's tech sector pressure, driven by renewed AI optimism and easing geopolitical tensions.