The Dow gained 693 points, the S&P 500 finished 0.1% below its record close, and fuel-sensitive airline and cruise stocks rallied as oil and Treasury yields fell.
U.S. stocks rose sharply in the August 3, 2026 regular session as Brent crude fell following President Donald Trump's weekend decision to hold off on new strikes against Iran. The Dow Jones Industrial Average gained 693.38 points, or 1.3%, to an all-time closing high of 53,178.41. The S&P 500 rose 1.5% to finish 0.1% below its record close, while the Nasdaq composite added 2.1%.
Dow set a record as all four major indexes rose
The S&P 500 ended at 7,600.50, 9.28 points below its record close of 7,609.78. The Russell 2000 of smaller companies also rose 1.7%.
| Index | August 3 regular-session change | Close |
|---|---|---|
| Dow Jones Industrial Average | +693.38, +1.3% | 53,178.41 |
| S&P 500 | +110.78, +1.5% | 7,600.50 |
| Nasdaq composite | +540.04, +2.1% | 25,913.90 |
| Russell 2000 | +50.57, +1.7% | 2,981.91 |
Brent crude fell 4.7% to $83.77 a barrel. The yield on the 10-year U.S. Treasury declined to 4.68% from 4.75% late Friday, according to Associated Press market reporting. The yield remained above the 3.97% level recorded before the war with Iran.
Airlines and cruise shares led fuel-sensitive gains
Companies with large fuel bills were among the session's strongest performers. United Airlines rose 5.8%, American Airlines gained 5%, and Norwegian Cruise Line Holdings advanced 6.6% in regular trading.
The session also had support from corporate earnings. FactSet estimated that S&P 500 companies were on track to report second-quarter earnings per share 47% above the year-earlier period, with more than half of the index having reported. If maintained, that would be the strongest growth since the second quarter of 2021.
XTB linked lower oil to inflation and bond yields
Kathleen Brooks, research director at broker XTB, said earlier Monday that the decline in oil should support markets by easing inflation concerns and damping bond yields. By the U.S. close, the 10-year Treasury yield had fallen seven basis points from Friday's level.
IG market analyst Tony Sycamore offered a more cautious view. He said the central question was whether the week would repeat the previous pattern in which hopes for an agreement faded as Iran maintained control over the Strait of Hormuz and the risk of further attacks remained.
Strike hold did not amount to a completed agreement
Trump said on Sunday, August 2, that he decided against ordering new U.S. strikes after appeals from Qatar, Saudi Arabia and the United Arab Emirates. He said diplomacy would be given more time and that an emerging agreement would include reopening the Strait of Hormuz.
Iranian Foreign Ministry spokesperson Esmail Baghaei said Sunday that there were no current talks about reopening the strait. An official involved in mediation also told the Associated Press that no agreement had been reached. As of the August 3 U.S. market close, the strike hold remained a diplomatic pause rather than a completed settlement.