Key Takeaways
- The S&P 500 (SPX) hit an intraday record high of 7,640 on Tuesday, marking its first return to peak levels since early June as investors cheered strong AI-linked earnings.
- The NASDAQ 100 (NDX) rallied more than 2%, reaching its highest point since July 15, driven by a rebound in technology heavyweights and positive forecasts from Caterpillar (CAT) and Palantir (PLTR).
- Brent Crude oil prices plunged below $80 per barrel for the first time since mid-July following comments from U.S. Treasury Secretary Scott Bessent regarding a potential deal to reopen the Strait of Hormuz.
- Ford Motor Company (F) reported a 10.2% year-over-year decline in July U.S. sales, totaling 169,951 units, though electrified vehicle sales remained a focal point at 16,151 units.
- Canada’s manufacturing sector expanded at its fastest pace in four years, with the S&P Global Manufacturing PMI rising to 53.5 in July from 53.0 in June.
Wall Street Reaches New Milestones
U.S. equity markets saw a significant surge on Tuesday as the S&P 500 (SPX) climbed 0.5% to reach an intraday record high for the first time in two months. The rally was underpinned by a wave of optimism surrounding artificial intelligence (AI) monetization, with heavyweights like Amazon (AMZN) and Microsoft (MSFT) providing evidence that massive infrastructure investments are beginning to yield tangible returns.
The tech-heavy NASDAQ 100 (NDX) outperformed the broader market, rising more than 2% to its highest level since mid-July. This recovery follows a volatile July characterized by a rotation out of over-leveraged semiconductor names. Market sentiment was further bolstered by upbeat AI-driven forecasts from Caterpillar (CAT) and Palantir (PLTR), which reassured investors of the broadening reach of AI technology across different sectors.
Energy Markets Retreat on Geopolitical Hopes
Brent Crude oil prices fell sharply, dropping 3.7% to trade below the $80 threshold for the first time since July 13. The decline was triggered by U.S. Treasury Secretary Scott Bessent's suggestion that a diplomatic resolution to the U.S.-Iran conflict could be imminent, potentially reopening the Strait of Hormuz.
The prospect of normalized oil flows through the critical shipping channel, which handles roughly 20% of global supply, significantly reduced the geopolitical risk premium that had kept prices elevated. Energy analysts noted that while physical supply remains tight, the shift in sentiment has provided much-needed relief to global inflationary pressures.
Mixed Results for Automotive and Manufacturing
In the automotive sector, Ford Motor Company (F) faced headwinds as its total July U.S. sales fell 10.2% year-over-year to 169,951 units. Despite the overall decline, the company continues to pivot toward its "Ford Model e" division, recording 16,151 electrified vehicle sales during the month.
North of the border, the Canadian economy showed signs of industrial strength. The S&P Global Canada Manufacturing PMI rose to 53.5 in July, the highest reading since June 2022. While domestic demand drove production and new orders to a four-year high, manufacturers expressed ongoing concerns regarding international trade tariffs and the impact of Middle Eastern tensions on input costs.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.