U.S. stocks leap toward record as profits keep piling up, oil prices ease
U.S. stock markets are rallying toward record highs as companies report strong quarterly earnings and oil prices decline. Major tech and industrial firms, including Palantir and Caterpillar, exceeded profit expectations, buoyed by AI-related demand.
Why it matters
Strong corporate earnings are a primary driver of market confidence, signaling resilience despite broader economic concerns like inflation and geopolitical instability.
The U.S. stock market is rallying toward a record on Tuesday (August 4, 2026) as companies keep piling up profits and oil prices ease.
The S&P 500 climbed 1.7% and is on track to top its all-time high set a couple months ago. The Dow Jones Industrial Average added 966 points, or 1.8%, to its own record set the day before, while the Nasdaq composite was 2.2% higher, as of 12:55 p.m. Eastern time.
Despite worries about high inflation, the war in Iran and a possible bubble in stock prices because of euphoria around the boom in artificial-intelligence technology, Wall Street is nearing its latest apex in large part because profits are soaring for companies. That's key because stock prices tend to follow the path of corporate earnings over the long term.
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