U.S. stocks had their best start to the month in four years. The Dow hit a new record high.

On Monday, August 3, the three key U.S. stock market indices posted their best performance on the first trading day of the month since October 2022, MarketWatch reported.

The Dow Jones Industrial Average, a blue-chip index, set a record at the close of trading: it rose 1.3% to 53,178.41 points. This marks the 22nd time this year that the index has closed at a new high. Boeing shares gained 8% on the day following the aircraft’s certification and the latest “bear” analyst’s decision to withdraw his sell recommendation.

The Nasdaq Composite “tech” index rose 2.1% over the course of the day to reach 25,913.9 points. Over the past three trading days, it has risen 6%, marking its best performance over such a period since May 2025, according to MarketWatch.

The S&P 500 broad-market index rose 1.5% to 7,600.5 points, marking its best day since March, according to Bloomberg. The S&P 500 is also close to a record high: on June 2, it closed at 7,609.78 points. The Nasdaq Composite is still about 4% shy of a new high.

On Monday, the largest tech companies saw their stock prices rise sharply: reports from Amazon and Microsoft detailing the success of their cloud businesses gave the sector a new boost. The combined market capitalization of the “Magnificent Seven” rose by approximately $1.9 trillion over three trading days—likely a record, according to MarketWatch, citing Dow Jones Market Data. Meta shares rose 6% on Monday, Amazon shares rose more than 4%, and Alphabet (Google’s parent company) and Microsoft shares each rose 5%.

The rise in stock prices was driven by easing tensions between the U.S. and Iran after U.S. President Donald Trump announced a new round of talks, according to MarketWatch. This pushed down oil prices and eased concerns about a resurgence of inflationary pressure. The decline in U.S. Treasury yields also benefited stocks, particularly tech stocks and other “growth stocks,” the publication notes. In addition, the ISM Manufacturing Index came in stronger than expected: it rose to 55.6 points in July, marking a high not seen since 2022 and significantly exceeding economists’ expectations, MarketWatch added.

Investors have once again turned their attention to tech stocks thanks to quarterly earnings that are coming in higher than expected, said Jet Ellerbrock, a portfolio manager at Argent Capital Management, as reported by CNBC. The geopolitical situation is once again setting the agenda for macroeconomic forecasts and providing comfort to investors looking to buy on the dip, noted Ian Lindgen, managing director at BMO Capital Markets, as quoted by Bloomberg.

This article was AI-translated and verified by a human editor