US stocks began August with strong gains on Monday as investors bought back into technology shares following a volatile end to July, with Amazon, Microsoft and Alphabet helping drive the advance.
The S&P 500 rose 1.3% and moved close to its record high, while the Nasdaq Composite climbed 2.1%. The Dow Jones Industrial Average added 1.4%, gaining more than 700 points as all three major indexes finished the session higher.
The move followed a difficult week for markets, although Friday’s gains helped limit losses. Despite the recovery, only the Dow ended July in positive territory.
Amazon was the standout performer after its cloud business results triggered a sharp rally. Shares gained another 4.5% on Monday after jumping 15% in the previous session, taking the company’s market value above $3 trillion for the first time.
Microsoft and Alphabet also contributed to the technology rebound, with both companies rising around 5%. Boeing provided the biggest boost to the Dow, climbing 8%, while Apple remained under pressure after falling 7% during the previous session and declining almost 2% on Monday.
Oil Falls as Iran Tensions Ease
Energy markets moved in the opposite direction as crude prices dropped following comments from President Donald Trump that he was delaying action against Iran if an agreement could be reached to reopen the Strait of Hormuz.
West Texas Intermediate futures fell 5.2% to $80.25 a barrel, while Brent crude declined 4.7% to $83.75. Lower oil prices also coincided with a fall in Treasury yields, with the 10-year yield trading around 4.69%, five basis points below Friday’s close after reaching its highest level since January 2025.
Markets are now preparing for another major week of corporate results, including reports from SpaceX, McDonald’s and Advanced Micro Devices, while Friday’s US employment report will provide the latest update on the labour market.
Palantir Raises Forecast After Strong Quarter
Palantir shares jumped over 10% in after-hours trading after the company exceeded expectations for its second quarter and increased its full-year revenue forecast.
The company now expects annual revenue of $8.16 billion, compared with previous guidance of $7.65 billion to $7.66 billion. Adjusted earnings came in at $0.41 per share, above analyst expectations of $0.35, while revenue reached $1.94 billion against forecasts of $1.8 billion.
Palantir said US commercial revenue increased 149% year on year, while overall revenue climbed 93%. Revenue from US government customers also remained strong, rising 90% compared with the previous year and 18% from the previous quarter.
FTSE 100 Slips as AstraZeneca Weighs on London
The FTSE 100 closed slightly lower on Monday as AstraZeneca shares fell sharply following reports of potential discussions with Bristol-Myers Squibb over a possible $400 billion merger.
The blue-chip index declined 0.1%, while the FTSE 250 gained 1% as lower bond yields supported interest-rate-sensitive companies.
AstraZeneca dropped more than 8% as investors questioned whether a deal of that size would strengthen the company’s position given its existing drug pipeline. Housebuilders benefited from the decline in yields, with Barratt Redrow rising 3.8%, Persimmon adding 2.2% and Vistry climbing 8%.
Smith & Nephew gained 3.3% ahead of its results, while InterContinental Hotels Group slipped 2.2%.
On the FTSE 250, Clarkson surged more than 8% after reporting record first-half profit and saying annual performance is expected to exceed market forecasts, helped by disruption in global shipping routes and higher freight rates.
