US close: Dow, S&P 500 hit new highs on Iran deal hopes

5th Aug 2026 00:40

(Sharecast News) - US stock markets closed sharply higher on Tuesday, with both the Dow Jones Industrial Average and S&P 500 finishing at all-time highs on rising hopes of diplomatic progress in the Middle East.

"Hope has been rekindled that a quick solution can be found to the conflict in the Middle East," said AJ Bell head of financial analysis Danni Hewson.

The Dow surged 1.7% to a new closing high of 54,085.88, the S&P 500 jumped 1.8% to a record close of 7,736.52, while the Nasdaq soared 2.6% to 26,584.99, its highest in nearly two months.

Oil prices dropped after US Treasury Secretary Bessent claimed in an interview with CNBC that a final deal between the US and Iran to reopen the Strait of Hormuz could be reached as early as Wednesday.

Subsequent reports of a commercial vessel being struck by a projectile offshore Oman raised fears that obstacles likely still remained between Washington and Tehran.

Nevertheless, Brent crude still settled down 5.3% at $79.36 a barrel and WTI fell 5.7% to $75.77 a barrel, with both hitting their lowest levels in nearly four weeks.

"Stocks continue to gain on hopes that some kind of deal on Hormuz will be announced soon. Given how often this has been declared, you might think that everyone was tiring of the pantomime, but with the Dow, Dax and others at record highs and recent laggards like the Dax and Nikkei rebounding too it appears that Trump is managing to avoid a major crisis in the global economy," said Chris Beauchamp, chief market analyst at IG.

"Oil prices are down too, which is always good for generating upside in equities panicked by signs that inflation is picking up again."

Tech stocks jumped on Tuesday, fuelled by a strong performance from tech giant Palantir, which lifted its full‑year guidance following strong US demand, with the company forecasting at least $8.15bn in revenues and $3.4bn from its US commercial division - both ahead of which were ahead of expectations. Palantir also posted better‑than‑expected Q2 earnings, as US sales jumped 23% to $1.57bn, helping net income rise to $1.06bn.

Elsewhere, Caterpillar jumped after it delivered a strong Q2 beat, posting $8.17 adjusted earnings per share on $20.54bn revenue versus expectations for $6.20 and $19.34bn, respectively.

Merck inched higher as Q2 results topped forecasts, with a smaller‑than‑expected adjusted loss and higher‑than‑anticipated revenue. The pharma group also hiked its full‑year sales guidance.

Pfizer beat Q2 expectations and lifted the lower end of its revenue outlook on stronger non‑Covid demand, reporting $15.03bn in sales and $0.77 adjusted EPS.

Spotify announced it had hit 300m premium subscribers and delivered a sharp swing to profit, with revenues up 14% and gross margins reaching a record 33.4%, though monthly active users came in slightly below guidance, causing shares to fall.

McDonald's rose but posted mixed Q2 results as US same‑store sales growth slowed, with net income rising to $2.36bn and revenue up 4% to $7.1bn, while global comparable sales increased 1.3%.

On the macro front, the US trade deficit narrowed in June as both exports and imports declined, according to the Bureau of Economic Analysis, with the goods shortfall easing and the services surplus improving. Exports slipped $2.9bn on the month to $314.7bn, while imports fell $7.3bn to $388bn, pulling the overall goods and services deficit down to $73.3bn.

US job openings were little changed in June, holding at 7.4m, while hires and separations also remained broadly steady, according to the Bureau of Labor Statistics' latest JOLTS report. Hires were unchanged at 5.3m, and total separations held at 5.4m, with quits at 3.2m and layoffs and discharges at 1.8m.

Finally, US factory orders dipped again in June, marking a second monthly decline, according to the Census Bureau, with softer shipments partly offset by continued strength in unfilled orders and inventories. New orders edged 0.3% lower to $656.5bn after a 1.1% fall in May, while shipments slipped 0.2% to $652.1bn following six straight monthly increases.

Dow Jones - Risers

Intel Corp. (INTC) $100.86 16.49%

Cisco Systems Inc. (CSCO) $121.74 6.61%

Caterpillar Inc. (CAT) $876.54 5.60%

International Business Machines Corporation (CDI) (IBM) $235.15 3.91%

Salesforce.Com Inc. (CRM) $190.99 2.71%

Goldman Sachs Group Inc. (GS) $1,052.98 2.52%

Home Depot Inc. (HD) $348.24 2.42%

3M Co. (MMM) $181.45 2.38%

Procter & Gamble Co. (PG) $148.01 2.10%

Boeing Co. (BA) $237.16 1.57%

Dow Jones - Fallers

Nike Inc. (NKE) $41.53 -2.60%

Unitedhealth Group Inc. (UNH) $407.55 -1.88%

Chevron Corp. (CVX) $190.40 -1.44%

Verizon Communications Inc. (VZ) $46.88 -1.01%

Coca-Cola Co. (KO) $86.56 -0.35%

S&P 500 - Risers

Gartner Inc. (IT) $185.79 22.61%

Intel Corp. (INTC) $100.86 16.49%

Micron Technology Inc. (MU) $892.67 14.20%

Whirlpool Corp. (WHR) $44.62 13.80%

Lam Research Corp. (LRCX) $317.74 13.44%

Advanced Micro Devices Inc. (AMD) $518.58 12.49%

Ipg Photonics Corp. (IPGP) $94.07 11.94%

Western Union Co. (WU) $7.31 11.60%

QUALCOMM Inc. (QCOM) $162.67 11.22%

KLA-Tencor Corp. (KLAC) $195.45 10.99%

S&P 500 - Fallers

Aptiv PLC (APTV) $47.72 -16.62%

NRG Energy Inc. (NRG) $117.04 -15.48%

Chipotle Mexican Grill Inc. (CMG) $33.82 -9.72%

Coterra Energy Inc. (CTRA) $32.56 -8.62%

Alexandria Real Estate Equities Inc. (ARE) $48.87 -7.84%

Rockwell Automation Inc. (ROK) $445.23 -7.43%

W.W. Grainger Inc. (GWW) $1,300.45 -5.16%

Marriott International - Class A (MAR) $345.20 -3.58%

ProLogis (PLD) $139.05 -3.54%

Hasbro Inc (HAS) $91.51 -3.47%

Nasdaq 100 - Risers

Intel Corp. (INTC) $100.86 16.49%

Micron Technology Inc. (MU) $892.67 14.20%

Lam Research Corp. (LRCX) $317.74 13.44%

QUALCOMM Inc. (QCOM) $162.67 11.22%

KLA-Tencor Corp. (KLAC) $195.45 10.99%

Broadcom Inc. (AVGO) $418.16 10.35%

Applied Materials Inc. (AMAT) $546.62 10.09%

Microchip Technology Inc. (MCHP) $80.67 9.55%

Skyworks Solutions Inc. (SWKS) $66.79 9.46%

Asml Holdings N.V. (ASML) $1,711.89 7.36%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

Marriott International - Class A (MAR) $345.20 -3.58%

Hasbro Inc (HAS) $91.51 -3.47%

Amazon.Com Inc. (AMZN) $277.42 -2.63%

Autodesk Inc. (ADSK) $237.21 -2.61%

Starbucks Corp. (SBUX) $104.97 -2.54%

Verisk Analytics Inc. (VRSK) $192.80 -2.42%

Monster Beverage Corp (MNST) $94.18 -2.22%

Cognizant Technology Solutions Corp. (CTSH) $56.13 -1.98%

Ross Stores Inc. (ROST) $251.06 -1.95%