U.S. markets enter Wednesday, August 5, 2026, with conditions set by the Tuesday, August 4 close.

Stocks pushed higher. The Dow reached a record close. The S&P 500 reached a record close. The Nasdaq surged. Small caps improved. Oil prices fell. Treasury yields eased. AI stocks stayed strong. Earnings remained the main driver.

The S&P 500 closed at 7,736.52.
The Nasdaq closed at 26,584.99.
The Dow closed at 54,085.88.
The Russell 2000 closed at 3,036.98.

The surface improved. The reason was simple:

One company wiped $31 billion from IBM in a single trading day.

Not with a product launch. With a blog post.

Days later, America's largest legal database company suffered the worst drop in its history.

Then cybersecurity. Then consulting. Then advertising.

$285 billion gone from the software sector in under a week.

Microsoft alone has surrendered $700 billion since this started.

And here's the part that should worry you:

That happened while this company was still private. Still holding its most powerful weapon back.

Now it's about to go public - possibly in October - with a nearly $1 trillion valuation and a war chest to match.

If you own "safe" software, consulting, or services stocks in your retirement account, you may be standing in the blast radius.

I just published the 5 stocks I'd sell before October - and the one backdoor play I'd buy instead.

See the full briefing before the IPO changes everything »

Tuesday’s session showed broad strength across the market.

The Nasdaq rose +2.6%.
The Russell 2000 rose +1.8%.
The S&P 500 rose +1.8%.
The Dow gained +1.7%.

That ranked the major indexes from strongest to weakest as:
Nasdaq, Russell 2000, S&P 500, Dow.

The Nasdaq gained 671.10 points.
The Russell 2000 gained 55.07 points.
The S&P 500 gained 136.02 points.
The Dow gained 907.47 points.

The strongest signal came from growth stocks. Technology continued leading. Investors returned to AI and growth companies as earnings remained strong and oil prices moved lower. The Nasdaq led the move. That showed buyers were willing to step back into technology after recent volatility.

The S&P 500 reached a new record. The index gained as investors became more comfortable with lower energy pressure. The Dow delivered the biggest headline. It closed above 54,000 for the first time. That showed the rally was not limited to technology.

Large companies across multiple sectors gained. Small caps improved. The Russell 2000 moved above 3,000. That mattered because smaller companies are more sensitive to economic growth and interest rates.

The market message:

Move your money now.

That is the urgent message from Larry Benedict, the trader who generated $274 million in profits for his clients.

Click here to hear his warning

You see, every time the Federal Reserve makes a major move, certain assets move with it, and if you're positioned correctly, the returns can be extraordinary.

When the Fed cut rates in 2020, Larry's readers were positioned to make 62% from a single position.

When it signaled rate hikes in January 2022, they could have made 117% in under a month.

When Fed Chair Jerome Powell spoke at Jackson Hole, Larry had his readers positioned for an 89% gain in just 17 days.

Now, President Trump has installed a new Fed chair and Larry says it's triggering what could be the most significant shift in the U.S. financial system in nearly 20 years.

He has already identified the single ticker he says will be at the center of the money flows.

Click here to discover the one move Larry is recommending right now

Treasury yields eased.

The 2-year yield moved lower.
The 10-year yield moved near 4.63%.
The 30-year yield remained elevated.

Lower oil prices helped the bond market. When energy prices fall, inflation pressure can ease. That gives investors more confidence that rates may not need to stay high for as long. The bond market remains the main risk. Long-term yields are still high. That keeps pressure on expensive stocks.

The key question: Can yields continue falling while earnings remain strong?

The dollar remained active. The U.S. Dollar Index stayed elevated. The yen strengthened. The euro remained under pressure.

Currency markets continued reacting to interest rates and Japan’s currency actions. A stronger yen reduced some recent global pressure. The dollar remains an important market signal.

Commodity markets focused on oil.

WTI crude moved near $75.77.
Brent crude moved near $79.36.
Spot gold traded near $4,054.

Oil was the biggest market change. Crude fell sharply as investors saw progress toward lower geopolitical risk. That helped stocks. That helped bonds. That reduced inflation concerns. Gold remained supported. The metal continued benefiting from uncertainty, but lower inflation pressure reduced some demand.

The commodity message: Lower oil helped the market move higher.

Wednesday begins with a stronger market setup. The biggest change was energy. Last week, oil pushed inflation fears higher. This week, falling oil prices removed some pressure.

The chain reaction:

The market is now watching three things:

AI remains one of the biggest growth stories. But investors still want proof that spending creates profits. Rates remain the biggest risk. Lower yields can extend the rally. Higher yields can slow it down. The market improved. Now it needs confirmation.

Key reference levels:

Markets enter Wednesday after another strong session. The Dow reached a record close. The S&P 500 reached a record close. The Nasdaq surged. Small caps improved. AI stocks stayed strong. Oil prices fell. Treasury yields eased. Investors returned to risk.

The key takeaway: Tuesday showed what happens when inflation pressure falls. Oil dropped, yields eased, and investors returned to stocks. Earnings kept confidence high, but the next test is whether this rally can continue while rates remain elevated and companies continue proving they can turn growth spending into real profits.