Dow and S&P 500 close at fresh records, Nasdaq books best 4-day stretch in over a year

U.S. stocks finished sharply higher on Tuesday, with both the S&P 500 and Dow Jones Industrial Average logging fresh records, as semiconductor names extended their rebound and investors hoped that the U.S. and Iran could soon reach a deal to reopen the Strait of Hormuz.

The S&P 500 was up 136.02 points, or 1.8% to end at 7,736.52, its first record close since June. It was the largest one-day point and percentage gain for the large-cap index since April 8, according to Dow Jones Market Data.

The Dow rose 907.47 points, or 1.7%, to finish at 54,085.88, also an all-time closing high.

The Nasdaq Composite advanced 671.10 points, or 2.6%, ending at 26,584.99. The tech-heavy index has risen for four straight sessions and booked its largest four-day gain since April 2025.

The rally in technology stocks picked up steam on Tuesday after a brutal selloff in July. Shares of Palantir Technologies were up 29.5%, propelling the S&P 500, after the company posted blowout results for the second quarter. Chip names were also on a tear, with the PHLX Semiconductor Index up 6.6%.