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Dow soars 900 points on strong corporate profits, hopes of Iran deal
CBS News · 2026-08-04
Dow soars 900 points on strong corporate earnings and hopes of Iran deal - CBS News Latest U.S. Iran War Spokane Wildfires World Politics Entertainment HealthWatch MoneyWatch Crime Space Sports Brand Studio The Free Press Local News Atlanta Baltimore Bay Area Boston Chicago Colorado Detroit Los Angeles Miami Minnesota New York Philadelphia Pittsburgh Sacramento Texas Live CBS News 24/7 Baltimore Bay Area Boston Chicago Colorado Detroit Los Angeles Miami Minnesota New York Philadelphia Pittsburgh Sacramento Texas 48 Hours 60 Minutes Shows 48 Hours 60 Minutes CBS Evening News CBS Mornings CBS Morning News CBS Reports CBS Saturday Morning The Daily Report The Dish Face the Nation Sunday Morning The Takeout Things That Matter The Uplift CBS News Investigates CBS News Confirmed Podcasts Newsletters Download Our App CBS News Team Executive Team Brand Studio Paramount+ Join Our Talent Community RSS Feeds MoneyWatch | Managing Your Money CBS News Price Tracker Watch CBS News MoneyWatch Dow soars 900 points on strong corporate earnings and hopes of Iran deal By Aimee Picchi Aimee Picchi Associate Managing Editor, MoneyWatch Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports. Read Full Bio Aimee Picchi Updated on: August 4, 2026 / 4:15 PM EDT / CBS News Add CBS News on Google The U.S. stock market notched record highs on Tuesday after Treasury Secretary Scott Bessent said a deal to reopen the Strait of Hormuz could be reached within days. Investors were also cheered by strong corporate profits, with companies ranging from equipment maker Caterpillar to software company Palantir Technologies reporting second-quarter results that exceeded analysts' expectations. The S&P 500 climbed 136 points, or 1.8%, to 7,736, surpassing its previous high set on June 2. The Dow Jones Industrial Average jumped 907 points, or 1.7%, while the tech-heavy Nasdaq Composite gained 2.6%. Investors are hopeful that an end to the Iran war could lower global energy prices and reduce inflation. New government figures, the so-called Job Openings and Labor Turnover Survey (JOLTS), also showed that hiring in the U.S. remains solid , with layoffs at modest levels. "The equity rally is being driven by blowout earnings from the day's two most important reports (CAT and PLTR), positive remarks from Bessent on CNBC about the potential for a deal to reopen Hormuz arriving within the next 24-48 hours, and a JOLTS report that wasn't as hot as feared," Wall Street analyst Adam Crisafulli, head of Vital Knowledge, told investors in a note. To be sure, investors eager for peace in the Middle East have been disappointed before, with President Trump and other U.S. officials previously signaling that a breakthrough was at hand only for the conflict to resume. The Dow and S&P 500 have risen 12% and 13% this year, respectively, while the Nasdaq is up 14%. Stocks have rebounded after sliding in the weeks following the outbreak of war in Iran in late February and despite some concerns about an AI-driven stock bubble . Strongest growth in years Stocks are rising in large part because profits are soaring for U.S. companies, a key factor for investors, as equity prices tend to follow corporate earnings over the long term. Coming into this week, companies in the S&P 500 index were on track to deliver growth of nearly 50% in earnings per share for the spring from a year earlier, according to FactSet. That would be the biggest such jump since the spring of 2021, when the economy was emerging from the COVID-19 pandemic. Stock prices today look more in line with corporate profits, said Phil Segner, a co-portfolio manager at the Leuthold Group. Shares of Palantir Technologies jumped 29.3% after CEO Alex Karp said the defense tech company's revenue leaped 93% in what he called an "otherworldly" quarter. Besides reporting a stronger profit for the spring than analysts expected, the company also raised its revenue forecast for the full year of 2026. Caterpillar was another strong stock performer on Tuesday, with its shares climbing 6.5% after the heavy-equipment maker reported stronger-than-forecast profit and revenue. It was the first time Caterpillar made more than $20 billion in sales and revenue in a quarter, and CEO Joe Creed said it's seeing strong order rates and a growing backlog across its main businesses. Lower oil prices Stocks were helped by a drop in oil prices on Tuesday. Brent crude, the international benchmark, sank 4.9% to $79.64 per barrel as hope once again took over from fear in the oil market. It had swung sharply between $72 and $102 through July amid uncertainty about when the war with Iran would allow oil tankers to transit the Persian Gulf freely again to deliver crude around the world. Bessent told CNBC on Tuesday that a U.S. deal with Iran could soon be within reach. "I think 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," Bessent told the network. Edited by Alain Sherter The Associated Press contributed to this report. More from CBS News SpaceX shows strong growth in its first earnings report since IPO What to watch for in SpaceX's first public earnings report today Is a CD or a money market account better now? Here's what 3 experts think. How much interest will a $50,000 1-year CD earn if opened this August? Go deeper with The Free Press Trump Blinks First in Iran, with Haviv Rettig Gur The Real Reason Trump Needs a Deal with Iran In: Stock Market © 2026 CBS Interactive Inc. All Rights Reserved. Bessent on possible Strait of Hormuz deal Bessent signals a possible U.S-Iran deal that would open the Strait of Hormuz 03:09 Bessent signals a possible U.S-Iran deal that would open the Strait of Hormuz (03:09) SpaceX shows strong growth in its first earnings report since IPO What to watch for in SpaceX's first public earnings report today Is a CD or a money market account better now? Here's what 3 experts think. Trump Blinks First in Iran, with Haviv Rettig Gur Featured SpaceX Rocket Collision Iran War Latest MLB Trade Deadline Predictions NFL Overrated QBs Follow Us On YouTube Facebook Instagram X Privacy Privacy Policy California Notice Your Privacy Choices Terms of Use Minors' Privacy Policy More from CBS News Newsletters Podcasts Download Our App Brand Studio Sitemap Company About Paramount Advertise With Paramount Join Our Talent Community Help Feedback Contact the Ombudsman Copyright ©2026 CBS Interactive Inc. All rights reserved. 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