The stock market soars. 5 reasons behind the big surge Tuesday
📰 source: cnbc_topnews · 💼 business
stocks surged to records on tuesday. the dow jumped 900+ points, its best day in nearly two months, while the sp 500 gained almost 2% to a fresh all-time high. the nasdaq composite rose more than 2.5%.
multiple catalysts drove the rally. treasury secretary scott bessent told cnbc the us and iran could reach a deal on the strait of hormuz as soon as tuesday or wednesday, sending oil futures tumbling and bond yields lower. earnings also impressed: sp 500 companies are on track for 27% year-over-year second-quarter profit growth excluding alphabet and amazon, or 45% including them, per bank of america. tech was broad-based, with the semiconductor etf (soxx) up over 6% and the software etf (igv) up nearly 5%.
the sp 500 closed above 7,700 for the first time, breaking through the 7,620 june high. some traders also pointed to the near-collapse of leopold aschenbrenner's situational awareness fund as a washing-out of leveraged momentum bets. since tuesday, the sp 500 is up 3.3% for august, and the nasdaq has climbed almost 5% in two days.
why it matters: record sp500 close above 7,700 on easing oil tensions and strong earnings could extend the rally.
source: cnbc_topnews
sentiment: +0.80 · impact: 0.60