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Dow Surges 1,035 Points to Record on Hormuz Deal Hopes

economy-finance · 2026-08-04

On Tuesday, U.S. stocks experienced a significant surge, with the Dow Jones Industrial Average climbing 1,035 points, equivalent to a 2% increase, marking its second consecutive session at a record high, fueled by robust corporate earnings and declining oil prices. The S&P 500 rose by 1.8%, achieving its first record high since June, while the Nasdaq Composite saw a 2.5% gain. Leading the Dow was Caterpillar, which soared by 6%, and Palantir Technologies skyrocketed by 29% after CEO Alex Karp described the second-quarter results as "otherworldly." Treasury Secretary Scott Bessent suggested that a deal to reopen the Strait of Hormuz might be imminent. West Texas Intermediate crude dropped 5% to around $76 per barrel, with over 84% of S&P 500 companies exceeding analyst expectations this earnings season.

Key facts

  • Dow Jones Industrial Average rose 1,035 points (2%) to a record high
  • S&P 500 gained 1.8%, first record since June
  • Nasdaq Composite advanced 2.5%
  • Caterpillar jumped 6% after beating earnings and raising outlook
  • Palantir stock surged 29% after CEO called results 'otherworldly'
  • Treasury Secretary Scott Bessent said a Hormuz deal could come within days
  • Oil prices fell 5% on hopes of reopening Strait of Hormuz
  • Amazon market cap topped $3 trillion on Monday; Bezos plans to sell $4 billion in stock

Entities

Artists

  • Alex Karp
  • Jeff Bezos

Institutions

  • Dow Jones Industrial Average
  • S&P 500
  • Nasdaq Composite
  • Caterpillar
  • Palantir Technologies
  • Micron Technology
  • Marvell Technology
  • Goldman Sachs
  • Amazon
  • CNBC
  • FactSet
  • U.S. Treasury

Locations

  • United States
  • Strait of Hormuz

Sources