U.S. stock indices closed higher on August 4, with the Dow-30 (+1.71%) and the S&P 500 (+1.79%) at new record highs.
Stocks continued the rally that began on Monday, posting another strong gain on a positive market reaction to earnings reports and a rally in semiconductor makers. Palantir Technologies shares, after a strong report and an upgrade to its full-year revenue outlook, recorded their biggest daily percentage gain since February 2024.
Caterpillar shares, considered a barometer of the global industrial economy, also rose after it raised its forecast for full-year revenue growth, as AI data center construction boosted demand for its power and construction equipment.
On the economic front, U.S. job openings fell in June, but the pace of hiring picked up slightly, pointing to relatively steady labor demand heading into the summer. This stability gives the Fed room to keep its primary focus on inflation.
U.S. Treasuries extended the recovery that began on Monday, although even with today’s steady buying, yields only returned to May highs. The 2-year yield fell 5 bps to 4.20%, while the 10-year yield fell 6 bps to 4.63%. The U.S. dollar was little changed, as the yen remained the main theme in FX markets. Japan’s currency weakened against the dollar but still remains well above the 40-year low it hit before last week’s landmark intervention. The euro, in turn, edged up to $1.153.
Oil prices fell sharply after a Qatari official and the U.S. Treasury Secretary spoke about a possible short-term agreement between the U.S. and Iran that could lead to a resumption of shipping through the Strait of Hormuz.
WTI crude futures closed at $75.94 per barrel (-5.5%).