Stock Market Recap — August 4, 2026

📊 Alain’s Holdings — August 4, 2026
Symbol	Name	Price	Change	Change %
VOO	Vanguard S&P 500 ETF	708.98	+12.58	+1.81%
QQQ	Invesco QQQ Trust	723.85	+23.78	+3.40%
XIU.TO	iShares S&P/TSX 60 ETF	53.41	+0.65	+1.23%

Wall Street extended its rally on Tuesday as investors embraced another wave of strong earnings, easing oil prices, and renewed optimism surrounding artificial intelligence.

All three major indexes closed at or near record highs, led once again by technology stocks.

Market Performance

📈 Nasdaq Composite: +2.6%
📈 S&P 500: +1.8% (Record High)
📈 Dow Jones Industrial Average: +1.8% (+900 points, another Record High)

The combination of strong earnings, falling oil prices, and hopes for diplomatic progress in the Middle East created a broad-based rally across nearly every sector.

Palantir Delivers an “Otherworldly” Quarter

One of the day’s biggest winners was Palantir.

Shares surged nearly 30% after the company delivered another exceptional earnings report.

CEO Alex Karp described the quarter as “otherworldly,” highlighting explosive demand for the company’s AI-powered software.

Palantir’s U.S. commercial revenue grew 90% year over year, reinforcing the view that artificial intelligence is becoming a critical competitive advantage across both government and private industry.

Semiconductors Roar Back

Chip stocks enjoyed one of their strongest sessions in weeks.

The PHLX Semiconductor Index (SOX) jumped roughly 6%, while:

📈 Nvidia gained sharply.
📈 Intel continued its recent recovery.
📈 Micron advanced alongside the broader semiconductor rally.

The rebound suggests investors remain confident that demand for AI chips and data-center infrastructure will continue growing despite recent concerns about capital spending.

Caterpillar Benefits from the AI Boom

Technology wasn’t the only sector making headlines.

Caterpillar rallied after reporting quarterly revenue above US$20 billion for the first time in company history.

The industrial giant continues to benefit from rising investment in factories, energy projects, data centers, and infrastructure supporting artificial intelligence.

It serves as a reminder that the AI boom extends far beyond software companies.

Oil Prices Continue to Fall

Markets also welcomed another decline in oil prices.

Comments from Treasury Secretary Scott Bessent suggesting negotiations over the Strait of Hormuz may be progressing helped reduce fears of supply disruptions.

Lower oil prices eased inflation concerns and added support to today’s rally.

While political uncertainty remains, investors appear increasingly optimistic that diplomacy could prevent another major escalation in the region.

Eyes Turn to SpaceX and the Jobs Report

Attention now shifts to two important events.

After today’s close, SpaceX will release its first quarterly earnings report since becoming a public company.

The report will be closely watched after the stock’s difficult start following its IPO.

Investors are also awaiting Friday’s U.S. employment report, one of the most important economic releases of the month.

A strong labor market would reinforce confidence in the economy, while a weaker report could influence expectations for future Federal Reserve policy.

The Bottom Line

Tuesday’s rally reflected growing optimism on multiple fronts.

Strong corporate earnings.
Renewed leadership from AI-related companies.
Falling oil prices.
Improving hopes for diplomacy in the Middle East.

Markets continue rewarding companies that can demonstrate real financial benefits from artificial intelligence—not just ambitious spending plans.

For now, momentum clearly remains with companies delivering measurable results.

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