The Nasdaq Composite (^IXIC +2.59%) extended Monday’s rally on cooling geopolitical tensions, rising 2.59% to 26,585. The S&P 500 (^GSPC +1.79%) gained 1.79% to 7,737 to hit a record close, and the Dow Jones Industrial Average (^DJI +1.71%) climbed 1.71% to 54,086 after gaining 907 points.
Today’s Change
Index Level
7,736.52
Gold prices rose 1.01% to $4,075.26 as of U.S. market close, and the 10-Year Treasury yield slipped 0.07% to 4.61%. Most sectors finished in the green, with technology stocks up 4.20% and industrials up 3.42%, while only energy and utility stocks lagged.
Today’s biggest moves
Palantir Technologies shares surged nearly 30% on explosive growth in the U.S. market, while Caterpillar finished the day up 5.60% after reporting record quarterly revenue. Space Exploration Technologies stock increased ahead of its inaugural earnings release, but fell in after-hours trading on mixed results. AdaptHealth slumped almost 40% following an earnings miss and a reduction in its full-year earnings guidance.
What this means for investors
Stocks surged to record highs today as progress towards reopening the Strait of Hormuz and earnings strength drove a more optimistic mood. WTI crude oil fell over 6% to $75.32 a barrel on hopes that traffic might resume through the vital waterway relatively soon. Lower oil prices could help reduce inflation and make the Federal Reserve less likely to raise interest rates this year.
Palantir Technologies leadership reported “otherworldly” growth, which not only boosted its stock but also reassured investors that demand for artificial intelligence (AI) tools remains strong. Meanwhile, analysts at Citadel Securities think August may be less volatile than July, citing reduced leverage, less risk-taking by retail investors, and a strong earnings season. They may be right, but AI jitters have not gone away: Advanced Micro Devices fell in after-hours trading, despite solid results.
Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Caterpillar, and Palantir Technologies. The Motley Fool has a disclosure policy.
