On August 4, 2026, Wall Street soared to new all-time highs, driven by exceptional corporate earnings, the relentless rise of artificial intelligence, and a sharp drop in oil prices amid hopes of a US-Iran deal to reopen the Strait of Hormuz. The Dow Jones, S&P 500, and Nasdaq all closed at record levels, signaling strong investor confidence in the global economic outlook.

A Historic Day on Wall Street

The first trading session of August 2026 will be remembered as a day of euphoria. According to reports from Ámbito and Infobae, Wall Street celebrated with strong gains as excellent corporate results and a sharp decline in oil prices cleared the clouds of geopolitical tension that had dominated June and July.

New All-Time Highs

The Dow Jones Industrial Average (a price-weighted index of 30 major US companies) rose 1.71% to close at 54,085.88 points – an absolute record. The S&P 500 (a market-cap-weighted index of 500 large US firms) gained 1.79% to 7,736.52 units, surpassing its previous high from June. The tech-heavy Nasdaq Composite led the rally with a 2.59% jump to 26,584.99 points.

Oil Plunge and Geopolitical Hope

A key driver was the drop in crude oil. US Treasury Secretary Scott Bessent indicated that a deal with Iran to reopen the Strait of Hormuz – a critical chokepoint for global energy transport – could be reached 'today or tomorrow'. This sent Brent crude down 5.26% to $79.36 per barrel, while West Texas Intermediate (WTI) fell 5.69% to $75.77.

The AI Revolution as a Growth Engine

The bull market is not solely supported by geopolitics; exceptional corporate fundamentals and the unstoppable momentum of Artificial Intelligence (AI) are also driving gains. S&P 500 earnings per share are on track to surge 47% year-over-year in the second quarter – an extraordinary figure at this stage of the economic cycle.

Corporate Stars of August 4

  • Palantir Technologies soared +29.5% after reporting a 150% growth in US commercial revenue.
  • Caterpillar rose +5.6% after surpassing $20 billion in quarterly revenue, boosted by demand for turbines for AI data centers.
  • SpaceX (Elon Musk's company) gained +9.3% in its first earnings report since its June 2026 IPO.
  • Nvidia, Broadcom, and Micron led the chip sector with gains between 2.6% and 7.6%.

Morgan Stanley's CAPMI Index

Morgan Stanley reported that its Capital Goods Momentum Index (CAPMI) – which tracks 48 macroeconomic variables – rose 5 points to 58 points in July 2026. This signals accelerating global growth, especially in the US and Europe, driven by general industry, automotive, and aerospace sectors.

The Day's Exception

Chipotle Mexican Grill fell 9.7% after a salmonella outbreak in Minnesota affected 110 people, linked to jalapeños served at its restaurants. The company proactively removed the product, demonstrating how quickly markets penalize such health risks.

Looking Ahead: Optimism and Caution

Despite widespread enthusiasm, some analysts urge caution. Jack Ablin, chief strategist at Cresset Capital, noted he sees 'not a shred of skepticism' among investors. However, Phil Segner of Leuthold Group offered a more constructive view, arguing that with rising earnings, valuations appear less stretched. All eyes are now on the evolution of the Middle East conflict and upcoming US employment data.

Sources: El Día, Ámbito Financiero, Infobae, and InvertirOnline.