US Stocks Hit Record Highs as Iran Deal Looms

Major US stock indices reached record closing highs on August 4, 2026, as geopolitical tensions eased and corporate earnings surged. The S&P 500 rose 1.8% to 7,736.52, the Dow Jones Industrial Average climbed 907.47 points to 54,085.88, and the Nasdaq Composite jumped 2.6% to 26,584.99. The rally was fueled by a sharp decline in crude oil prices after Donald Trump announced he was holding off on military strikes against Iran, contingent on a rapid deal to reopen the Strait of Hormuz.

U.S. Treasury Secretary Scott Bessent further bolstered market sentiment, stating that negotiations with Iran were ongoing and a deal could be reached within 48 hours. This diplomatic shift lowered bond yields and inflation expectations, supporting a broad market recovery. The rally also followed the forced liquidation of billions in AI-related assets from Leopold Aschenbrenner's Situational Awareness fund, which had previously triggered a market correction.

Corporate performance played a central role, particularly in the AI sector. Palantir Technologies saw its stock surge nearly 30% after reporting a 93% revenue increase. Caterpillar also posted record quarterly sales exceeding $20 billion, citing high demand for power generation in AI data centers. In contrast, Chipotle Mexican Grill shares fell nearly 10% following a salmonella outbreak. Other notable developments included Amazon's market capitalization exceeding $3 trillion and the FAA certification of the Boeing 737 Max 7.