Stock Market News for Aug 5, 2026
Zacks Equity Research
Wed, August 5, 2026 at 3:33 PM GMT+5:30
4 min read
- CAT
-1.62% - PLTR
-1.58%
U.S. stock markets closed sharply higher on Tuesday buoyed by a gradual decline in crude oil prices for two successive days on positive developments on the Middle East war front. Solid results of artificial intelligence (AI)-led corporate bigwigs also boosted investors’ sentiment. All three major stock indexes ended in positive territory
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) advanced 1.7% or 907.47 points to close at 54,085.88, marking a new all-time closing high. Notably, 26 components of the 30-stock index ended in positive territory and four ended in negative territory. During intraday trade, the blue-chip index posted a new all-time high of 54,272.60.
The tech-heavy Nasdaq Composite finished at 26,584.99, climbing 2.6% or 671.10 points on strong performance by AI giants. The S&P 500 appreciated 1.8% or 136.02 points to finish at 7,736.52, reflecting a new all-time closing high. During intraday trade, the broad-market index recorded a new all-time high of 7,758.21.
Eight out of 11 sectors of the broad-market index ended in positive territory while three finished in negative territory. The Consumer Discretionary Select Sector SPDR (XLY), the Communication Services Select Sector SPDR (XLC) and the Industrials Select Sector SPDR (XLI) gained 1.8%, 2.9% and 1.9%, respectively. On the other hand, the Energy Select Sector SPDR (XLE) slid 1.3%
The fear gauge CBOE Volatility Index (VIX) rose 4% to 16.50. A total of 18.89 billion shares were traded on Tuesday, higher than the last 20-session average of 17.33 billion. Advancers outnumbered decliners on the NYSE by a 2.84-to-1 ratio. On the Nasdaq, a 2.89-to-1 ratio favored advancing issues
Decline in Crude Oil Prices
On Aug. 4, in an interview with CNBC, Treasury Secretary Scott Bessent said “we are in talks with the Iranians.” Bessent added, “There is a chance we may have a deal today or tomorrow to open the Strait and move towards a more normalized position in this conflict.”On Aug. 2, President Donald Trump announced the cancellation of a planned attack on Iran due to some positive developments. The President said in his Truth Social post, “We have just been asked by Iran, and other Middle Eastern Countries, to hold off any attack in that the perimeters of a deal has been agreed to.”Following these developments, crude oil prices declined. The U.S. benchmark — West Texas Intermediate — futures settled down 5.7% at $75.77 per barrel. The international benchmark — the Brent — dropped 5.3% to settle at $79.36 per barrel.
