US stocks hit record highs as earnings surge and oil falls

Major U.S. stock indexes surged to record highs on Tuesday, August 4, 2026, propelled by a combination of strong corporate earnings, a sharp drop in oil prices, and optimism over potential diplomatic progress in the Middle East. The S&P 500 climbed to a new all-time high, surpassing its previous record set in early June, while the Dow Jones Industrial Average and the Nasdaq Composite also posted significant gains.

The rally was broad-based, with technology and industrial stocks leading the advance. A key driver was the continued strength of the corporate earnings season. Companies within the S&P 500 are on track to deliver nearly 50% growth in earnings per share for the spring quarter compared to a year earlier, which would mark the largest such jump since 2021. Several major firms reported results that exceeded analyst expectations, fueling investor confidence.

Artificial intelligence companies were standout performers. Palantir Technologies saw its stock soar after reporting a 93% leap in overall revenue for the quarter and raising its full-year revenue forecast. Heavy equipment manufacturer Caterpillar also posted stronger-than-expected profit and revenue, noting record...