The US stock market witnessed one of the best single-day bullish trends overnight, with the Dow Jones crossing the 54,000 mark for the first time, while the S&P 500 index touched a new all-time high. Nasdaq soared 2% as well. The strong optimism on Wall Street is due to robust earnings and hopes of a peace deal between the US and Iran that will calm the inflationary storm and economic crisis.
Wall Street tied a bow around recent gains and pushed toward record highs early after the latest round of solid earnings and amid hopes for improved transit through the Strait of Hormuz. Caterpillar (CAT) and McDonald's (MCD) became the latest firms to beat estimates this morning, and Qatar signaled progress toward a short-term deal between the U.S. and Iran, Bloomberg reported. Crude fell 2% and Treasury note yields also declined, as per Charles Schwab's report.
US Stock Market:
The Dow Jones ended at 54,085.88, higher by 907.47 points, or 1.71%, after hitting a new all-time high of 54,272.60. The DJIA has touched the 54,000 mark for the first time in its history.
Meanwhile, the S&P 500 index soared by 136.02 points, or 1.8%, to trade around 7,736.52. Also, the Nasdaq Composite index climbed by 671.10 points or 2.6% to end at 26,584.99.
Major tech stocks witnessed a strong rally. SpaceX skyrocketed by 9.4% after reporting better-than-expected second-quarter revenue in its first earnings release as a public company. This is amid growing concern of the company's heavy spending for AI infrastructure. Meanwhile, Advanced Micro Devices Inc stock price rallied 7% after modest earnings as well.
But the star performers were Palantir, which skyrocketed nearly 30%. Also, Caterpillar surged by 6%, and McDonald's stock rose by over 1% after their quarterly earnings.
Other giants like Nvidia climbed 3%, Apple surged 2%, Microsoft and Google stock also rallied 1% each. Chipmakers also surged such as Samsung soared 4%, Micron Technology advanced by 8%, Broadcom rallied 7%, and Sandisk climbed nearly 11%.
What To Expect On August 5 From Wall Street?
Investors are now awaiting another round of corporate earnings on Wednesday, including results from Eli Lilly, AppLovin, Walt Disney, Uber, and Sandisk, as per Trading Economics.
Key macro data such as ADP Employment Change, EIA Crude Oil Inventories, ISM Non-Manufacturing Index, MBA Mortgage Applications Index will be released on Wednesday.
While companies scheduled to declare results include Allstate Corp. (ALL), AppLovin Corp. (APP), Brookfield Asset Management (BAM), CVS Health Corp. (CVS), DoorDash Inc. (DASH), Eli Lilly & co. (LLY), McKesson Corp. (MCK), MercadoLibre Inc. (MELI), Novo Nordisk A/S (NVO), SanDisk Corp. (SNDK), Shopify Inc. (SHOP), Uber Technologies Inc. (UBER), Walt Disney Co. (DIS), and Western Digital Corp. (WDC).
As per Ponmudi R, CEO of Enrich Money, while the recent decline in crude oil prices reflects growing optimism over a potential normalization of shipping through the Strait of Hormuz, investors are likely to remain cautious until there is greater clarity on the evolving geopolitical situation.
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