Y'all Street Daily
The Dow cleared 54,000 for the first time and the Nasdaq jumped 2.6% as blowout AI earnings and Strait of Hormuz reopening hopes lifted every major index.
Market Snapshot
All levels reflect Tuesday's record close, August 4.
Every major index finished at or near a record, with the gains broadening well beyond the mega-cap names that led earlier this summer.
Oil was the exception, sliding more than 3% as traders bet a US-Iran deal could reopen the Strait of Hormuz, while the VIX held below 16.
Earnings did the heavy lifting among the stocks in the news today.
Palantir soared 27% after a quarter management called "otherworldly," Zebra Technologies rode its own AI workflow beat higher, and Bruker sank on soft revenue and a trimmed forecast.
Main Story
Tuesday's record run had two engines: earnings and diplomacy.
Palantir jumped 27% after reporting revenue up 93% to around $1.94 billion and lifting full-year guidance to about $8.15 billion, its largest raise ever.
The Street read it as proof that enterprise AI spending is accelerating rather than peaking, then paired it with Hormuz optimism to justify chasing fresh highs.
With the S&P now stretched, the real test is whether an actual Hormuz deal becomes "buy the rumor, sell the news" for both oil and equities.
Chart of the Day
The S&P 500 spent most of July grinding sideways above 7,360 support before Tuesday's push.
The 1.8% jump cleared the prior June record near 7,620, which now flips to support.
With RSI around 60 and not yet stretched, the breakout still has room, though the gap back to support is widening fast.
Technical Trading
The tape is clean but getting extended.
S&P 500 held near-term support around 7,360 through July before breaking out to new highs.
The prior June record around 7,620 now becomes first support on any pullback.
RSI near 60 is firmly bullish but still short of the overbought line above 70.
Broader Markets
Treasury Secretary Scott Bessent said US and Iran could reach a deal "tomorrow" to reopen the Strait of Hormuz, the catalyst behind oil's slide and the risk-on tone.
WTI crude fell 3.2% to around $77.77 and Brent slipped below $80 as traders priced in freer shipping through the world's most important oil chokepoint.
Asian markets joined the rally, with South Korea's Kosdaq surging 5.8% and mainland China's CSI 300 up more than 1%.
SpaceX reported record revenue of around $7.8 billion on Starlink strength, while AMD beat estimates but flagged a steep jump in capital spending.
Texas News
The Texas Stock Exchange, now fully operational in Dallas, keeps building North Texas into a rival financial hub, with Goldman Sachs pouring some $700 million into its new campus there.
Texas Capital Bancshares posted second-quarter profit of around $77.3 million, or $1.58 a share.
Looking Ahead
Wednesday, August 5: Investors watch for confirmation of a Hormuz agreement, which could whipsaw oil and the energy trade.
Thursday, August 6: Weekly jobless claims give the next read on a labor market the Fed is watching closely.
Friday, August 7: A quieter earnings day lets the market digest whether this record run has staying power.
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Prices from Yahoo Finance, CNBC and Bloomberg. Technical levels from Investing.com and Barchart. News from Reuters, CNBC and Yahoo Finance.
For informational purposes only. Not investment advice. Prices are indicative opening levels and may differ from your broker.