US stocks started August on a powerful note as easing tensions with Iran sent oil prices and Treasury yields lower. The Dow Jones Industrial Average reached a record close, while Amazon, Boeing and other technology-related shares led the advance.
US markets at the close
Wall Street rallied sharply on Monday, 3 August 2026, as investors welcomed signs of geopolitical de-escalation, falling energy prices and stronger-than-expected US manufacturing data.
| Index | Closing level | Daily change |
|---|---|---|
| Dow Jones Industrial Average | 53,178.41 | +1.32% |
| S&P 500 | 7,600.50 | +1.48% |
| Nasdaq Composite | 25,913.90 | +2.13% |
| Russell 2000 | 2,981.91 | +1.73% |
The Dow gained 693.38 points and established a new closing record. The S&P 500 added 110.78 points, finishing only around 0.1% below its previous all-time high, while the technology-heavy Nasdaq Composite climbed 540.04 points.
Small-cap companies also participated in the rally, with the Russell 2000 rising 1.7%. This broader participation showed that the advance extended beyond the largest technology companies. Associated Press
Falling oil prices transform market sentiment
The most important catalyst was a sharp decline in crude oil prices after President Donald Trump delayed planned military strikes against Iran and indicated that negotiations could resume.
The announcement increased hopes that further escalation could be avoided and that disruption affecting the Strait of Hormuz might eventually ease.
Brent crude fell approximately 4.7% to $83.77 per barrel, while US oil prices moved back towards $80.
Lower oil prices supported equities through several channels:
- Reduced pressure on consumer fuel expenses;
- Lower operating costs for airlines and transport companies;
- Less immediate concern about energy-driven inflation;
- Reduced pressure on the Federal Reserve to maintain restrictive monetary policy;
- Lower government-bond yields;
- Improved expectations for household discretionary spending.
The decline particularly benefited airlines, homebuilders, software companies and other interest-rate-sensitive or fuel-intensive businesses. Energy producers, by contrast, underperformed as lower crude prices reduced expectations for future revenue.
The US ten-year Treasury yield fell to approximately 4.68%, providing additional support for growth stocks whose valuations are particularly sensitive to long-term interest rates.
Technology shares lead the advance
Technology was one of the strongest areas of the market as investors returned to large AI, cloud-computing and semiconductor companies.
Amazon reaches $3 trillion
Amazon climbed 4.6% to a record $284.02, taking its market capitalisation above $3 trillion for the first time.
The move followed stronger-than-expected quarterly results, including a reported 37% year-on-year increase in Amazon Web Services revenue. AWS growth accelerated as demand for artificial-intelligence infrastructure and cloud capacity remained strong.
Amazon became the fifth company to cross the $3 trillion threshold after Apple, Microsoft, Nvidia and Alphabet.
The milestone also reflected investors’ willingness to accept the group’s enormous investment programme. Amazon raised its estimated 2026 capital expenditure to approximately $220 billion as it expands data centres, computing capacity and AI infrastructure. Barron’s
Nvidia and the AI trade recover
Nvidia advanced approximately 2.9%, while Alphabet, Microsoft and other hyperscale cloud companies contributed to the Nasdaq’s outperformance.
Microsoft added close to 5%, extending the strong rally that followed its quarterly results. Optimism surrounding Azure growth and the commercial adoption of Microsoft 365 Copilot helped restore confidence in the group’s AI investment strategy.
The Magnificent Seven companies collectively gained hundreds of billions of dollars in market value during Monday’s session. However, their renewed strength also illustrates the market’s continued dependence on a relatively small number of exceptionally large companies.
Apple remains under pressure
Apple did not participate in the rally. Its shares declined around 1.8%, extending their losing streak following the company’s results.
The weakness allowed Alphabet to move ahead of Apple in market capitalisation. Investors continue to evaluate Apple’s growth outlook, AI strategy and ability to accelerate revenue beyond its mature hardware businesses.
Boeing surges after regulatory approval
Boeing was among the session’s largest major-company gainers, rising approximately 8%.
The US Federal Aviation Administration issued an amended type certificate for the Boeing 737 MAX 7 after an extensive review of the aircraft’s design and safety documentation.
Certification removes an important regulatory obstacle for Boeing and brings the manufacturer closer to delivering the aircraft to customers. It does not, however, resolve all of the company’s production, quality-control and cash-flow challenges.
The regulator said the approval followed years of work addressing complex technical issues. Federal Aviation Administration
The share-price reaction reflected the potential financial importance of starting MAX 7 deliveries, together with renewed confidence that Boeing may gradually stabilise its commercial-aircraft operations.
US manufacturing reaches four-year high
Economic data provided another source of support.
The Institute for Supply Management’s Manufacturing PMI rose to 55.6 in July from 53.3 in June. This was the strongest reading since May 2022 and remained comfortably above the 50-point threshold separating expansion from contraction.
The report showed that:
- Manufacturing expanded for a seventh consecutive month;
- The wider US economy remained in expansion;
- Production and new orders continued to grow;
- Manufacturing employment returned to expansion for the first time in almost three years.
The figures suggested that US industry entered the third quarter with stronger momentum than anticipated. Institute for Supply Management
Strong economic growth can sometimes push bond yields higher by reducing expectations for interest-rate cuts. On Monday, however, the inflationary relief created by falling oil prices dominated that concern.
Notable stock movers
Winners
- First Solar: gained approximately 10% following strong results and optimism surrounding forthcoming trade decisions;
- Boeing: rose around 8% after FAA certification of the 737 MAX 7;
- Ferguson: advanced approximately 6.7%;
- Corning: climbed about 6.1% following an analyst upgrade;
- CrowdStrike: gained roughly 6.1%;
- Amazon: rose 4.6% and exceeded a $3 trillion valuation;
- Palo Alto Networks: added approximately 4.6%;
- Alibaba: gained around 4.1% following the introduction of a new AI model;
- Nvidia: advanced approximately 2.9%;
- ServiceNow: rose around 2.7%.
Losers
- GameStop: dropped approximately 12% after announcing a $1.4 billion debt-for-equity exchange;
- Marriott International: fell around 7% as geopolitical disruption weighed on travel-related results;
- Circle Internet: declined approximately 3.6% following an analyst downgrade;
- Chevron: lost around 1.9% as crude prices fell;
- Apple: declined approximately 1.8%, extending its post-results weakness.
Market breadth improves
Approximately two-thirds of S&P 500 constituents finished higher.
That represents an improvement from sessions in which gains were almost entirely driven by megacap technology companies. Consumer discretionary, industrial, airline and housing-related shares joined the advance, while energy and some defensive consumer-staples companies lagged.
A broad rally is generally considered healthier than an index gain generated by only a handful of companies. Nevertheless, the Nasdaq’s 2.1% advance and the large contribution from Amazon, Microsoft, Nvidia and Alphabet show that technology remains the principal engine of the market.
What investors are watching next
Attention now turns back to the quarterly earnings season, with results from several important companies capable of producing sector-specific volatility.
Investors will monitor:
- Whether AI-related corporate spending continues to accelerate;
- AMD’s semiconductor and data-centre outlook;
- Palantir’s commercial and government AI demand;
- McDonald’s assessment of consumer spending;
- Pfizer’s pharmaceutical revenue and pipeline;
- Disney’s streaming and theme-park performance;
- Further developments in negotiations involving Iran;
- Oil prices and reopening prospects for the Strait of Hormuz;
- Upcoming US labour-market indicators.
The interaction between earnings, oil prices and bond yields may determine whether the S&P 500 can establish another record.
Closing assessment
Monday’s rally combined three favourable developments: reduced geopolitical anxiety, a substantial decline in oil prices and evidence of improving US manufacturing activity.
The Dow reached a new closing record, the S&P 500 moved back to within touching distance of its peak and the Nasdaq outperformed as investors returned to AI and cloud-computing leaders.
The decline in crude prices was especially important. It reduced immediate inflation concerns while improving the outlook for consumers and energy-intensive businesses. At the company level, Amazon’s entry into the $3 trillion club and Boeing’s regulatory breakthrough added further momentum.
However, risks remain elevated. The market continues to depend heavily on megacap technology companies, Treasury yields remain historically high and geopolitical negotiations can change direction rapidly.
Monday’s session therefore represented a decisive improvement in sentiment—but maintaining that momentum will require confirmation from earnings, economic data and the oil market.
Market levels and stock movements refer to the US closing session of Monday, 3 August 2026. This article is for informational purposes only and does not constitute investment advice.
Sources: Associated Press—US market close, Institute for Supply Management—July Manufacturing PMI, FAA—Boeing 737 MAX 7 certification, The Wall Street Journal—US stocks and oil, Barron’s—Amazon reaches $3 trillion
