{"id":65943,"date":"2026-08-04T10:08:14","date_gmt":"2026-08-04T14:08:14","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/sp-500-and-nasdaq-100-surge-to-new-heights-amid-ai-optimism-and-easing-energy-costs\/65943\/"},"modified":"2026-08-04T10:08:14","modified_gmt":"2026-08-04T14:08:14","slug":"sp-500-and-nasdaq-100-surge-to-new-heights-amid-ai-optimism-and-easing-energy-costs","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/sp-500-and-nasdaq-100-surge-to-new-heights-amid-ai-optimism-and-easing-energy-costs\/65943\/","title":{"rendered":"S&#038;P 500 and Nasdaq 100 Surge to New Heights Amid AI Optimism and Easing Energy Costs"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>The <a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a> (<a href=\"\/stock\/SPX\">SPX<\/a>) hit an intraday record high of 7,640 on Tuesday<\/strong>, marking its first return to peak levels since early June as investors cheered strong AI-linked earnings.<\/li>\n<li><strong>The NASDAQ 100 (<a href=\"\/stock\/NDX\">NDX<\/a>) rallied more than 2%<\/strong>, reaching its highest point since July 15, driven by a rebound in technology heavyweights and positive forecasts from Caterpillar (<a href=\"\/stock\/CAT\">CAT<\/a>) and Palantir (<a href=\"\/stock\/PLTR\">PLTR<\/a>).<\/li>\n<li><strong>Brent Crude <a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">oil prices<\/a> plunged below $80 per barrel<\/strong> 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.<\/li>\n<li><strong>Ford Motor Company (<a href=\"\/stock\/F\">F<\/a>) reported a 10.2% year-over-year decline in July U.S. sales<\/strong>, totaling 169,951 units, though electrified vehicle sales remained a focal point at 16,151 units.<\/li>\n<li><strong>Canada\u2019s manufacturing sector expanded at its fastest pace in four years<\/strong>, with the S&amp;P Global Manufacturing PMI rising to <strong>53.5<\/strong> in July from 53.0 in June.<\/li>\n<\/ul>\n<h2>Wall Street Reaches New Milestones<\/h2>\n<p>U.S. equity markets saw a significant surge on Tuesday as the <strong>S&amp;P 500 (<a href=\"\/stock\/SPX\">SPX<\/a>)<\/strong> climbed <strong>0.5%<\/strong> 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 (<a href=\"\/stock\/AMZN\">AMZN<\/a>) and <a href=\"https:\/\/stockmarketwatch.com\/stock\/MSFT\" data-internallinksmanager029f6b8e52c=\"18\" title=\"Stock: MSFT\">Microsoft<\/a> (<a href=\"\/stock\/MSFT\">MSFT<\/a>) providing evidence that massive infrastructure investments are beginning to yield tangible returns.<\/p>\n<p>The tech-heavy <strong>NASDAQ 100 (<a href=\"\/stock\/NDX\">NDX<\/a>)<\/strong> outperformed the broader market, rising more than <strong>2%<\/strong> 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 (<a href=\"\/stock\/CAT\">CAT<\/a>) and Palantir (<a href=\"\/stock\/PLTR\">PLTR<\/a>), which reassured investors of the broadening reach of AI technology across different sectors.<\/p>\n<h2>Energy Markets Retreat on Geopolitical Hopes<\/h2>\n<p><strong>Brent Crude<\/strong> oil prices fell sharply, dropping <strong>3.7%<\/strong> to trade below the <strong>$80<\/strong> threshold for the first time since July 13. The decline was triggered by U.S. Treasury Secretary Scott Bessent&#39;s suggestion that a diplomatic resolution to the U.S.-Iran conflict could be imminent, potentially reopening the <strong>Strait of Hormuz<\/strong>.<\/p>\n<p>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. <em>Energy analysts noted that while physical supply remains tight, the shift in sentiment has provided much-needed relief to global inflationary pressures.<\/em><\/p>\n<h2>Mixed Results for Automotive and Manufacturing<\/h2>\n<p>In the automotive sector, Ford Motor Company (<a href=\"\/stock\/F\">F<\/a>) faced headwinds as its total July U.S. sales fell <strong>10.2%<\/strong> year-over-year to <strong>169,951 units<\/strong>. Despite the overall decline, the company continues to pivot toward its &quot;Ford Model e&quot; division, recording <strong>16,151<\/strong> electrified vehicle sales during the month.<\/p>\n<p>North of the border, the Canadian economy showed signs of industrial strength. The <strong>S&amp;P Global Canada Manufacturing PMI<\/strong> rose to <strong>53.5<\/strong> 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.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways The S&amp;P 500 (SPX) hit an intraday record high of 7,640 on Tuesday, marking its first return to 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