Closing Bell: Index Heights Continue on Hormuz Hopes

U.S. stocks rallied sharply on Tuesday, with the S&P 500 (SPX) and Dow Jones Industrial Average ($DJI) settling at fresh record highs, thanks to strong earnings and another decline in oil prices driven by hope that energy shipments can restart in the Strait of Hormuz. 

The S&P rose 1.79% while the Nasdaq-100 (NDX) rallied 3.32%. The Dow spiked 1.71%, and the small-cap Russell 2000 (RUT) jumped 1.85%.  

The Philadelphia Semiconductor Index (SOX) jumped 6.55%, underscoring the chip-stock comeback from a washout in July. Intel shares rallied 10.9%, Micron Technology (MU) gained 7.6%, and Marvell Technology (MRVL) advanced 12.8%. Reports that the Trump administration is considering restrictions on Chinese-made data-center components further boosted AI infrastructure names and semiconductor stocks. 

U.S. benchmark oil prices tumbled nearly 6% to near $75.71 per barrel. That eased inflation worries, and the Bureau of Labor Statistics reported 7.36 million job openings in June, which was down from a revised 7.54 million in May. 

Four things to know from Tuesday’s markets: 

Palantir (PLTR) spiked nearly 30%, the best day for the stock in more than two years, after posting blowout results for the second quarter. CEO Alex Karp described earnings as “otherworldly” thanks to demand for sovereign AI tools. Palantir raised its annual revenue forecast; Deutsche Bank upgraded the stock to Buy from Hold.  See FOMO: PLTR Surges on Earnings | Next Gen Investing 

In after-hours trading, Space Exploration Technologies "SpaceX" (SPCX) shares were down more than 7% as the company reported a second-quarter loss of $541 million on revenue of $7.8 billion in its first earnings report as a public entity. It beat Wall Street revenue expectations and said it ended the second quarter with $100 billion in cash and marketable securities, according to reports. See What to Expect from SPCX Earnings | Next Gen Investing

Caterpillar (CAT) posted record quarterly revenue above $20 billion and cited growing demand tied to the AI data-center buildout. Caterpillar shares jumped 5.6% Tuesday. See CAT Surges on Strong Earnings and AI Momentum | Morning Trade Live

McDonald's (MCD) shares rose 1% despite struggles: The fast-food giant said recent value pricing changes created confusion for customers and restaurant staff, resulting in loyal customers visiting less frequently, and the company pushed back its target of reaching 50,000 global restaurants. U.S. same-store sales rose just 0.8% in the second quarter and were described as slightly negative in July. See YUM & SHAK Emerge as Favorites While MCD’s Faces Growing Competitive Pressure

Tom White and Angrej Singh contributed to this article.

Economic Calendar, Wednesday August 5 

• 08:15 AM: ADP Nonfarm Employment Change (Jul) 
• 09:45 AM: S&P Global Services PMI, Final (Jul) 
• 10:00 AM: ISM Services PMI (Jul) 

Earnings Snapshot, Wednesday 

• Premarket: Eli Lilly and Company (LLY), The Walt Disney Company (DIS), Uber Technologies, Inc. (UBER), Shopify Inc. (SHOP) 
• Postmarket: DoorDash, Inc. (DASH), Block, Inc. (XYZ), MercadoLibre, Inc. (MELI), CF Industries Holdings, Inc. (CF), Exelixis, Inc. (EXEL) 

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