Stock Market Update Tuesday August 4, 2026

Stock Market Update Tuesday August 4, 2026 U.S. stocks surge to fresh record highs

Wall Street staged a powerful risk-on rally Tuesday, with all three major averages posting outsized gains. The S&P 500 climbed 1.8% to notch its first record close since June, while the Dow Jones Industrial Average surged 907 points, eclipsing the 54,000 milestone for the first time. The Nasdaq Composite outperformed, advancing 2.6% to cap its strongest four-day rally in more than a year, as technology and AI-related stocks led the charge.

Away From Stocks: Treasury Yields: Treasury prices advanced as yields moved lower alongside crude oil, with the 10-year Treasury yield declining to 4.63%. Oil: WTI crude fell to approximately $76 per barrel as optimism increased over a potential agreement to reopen key shipping lanes through the Strait of Hormuz, easing concerns over global energy supply disruptions. Volatility: The VIX edged higher to 16.50, creating an unusual backdrop of stocks higher alongside rising implied volatility. While uncommon, this combination can reflect increased demand for downside hedging even as equities rally. Friday’s U.S. Employment Report will likely determine whether volatility subsides or continues to build ahead of the next major macro catalyst.