S&P 500 hits record 7,736 as oil slides on Iran talks
Published on August 5, 2026
The S&P 500 closed at a record 7,736.52 on Tuesday, and crude did most of the work. Oil dropped more than 5% again after signs of a thaw between Washington and Tehran, which pulled long term yields lower and lifted US indices. On Wednesday the market swaps barrels for wages, with the ADP survey landing at 8:15 am ET.
The S&P 500 record rests on cheaper crude
The index added 136 points, or 1.8%, to finish at 7,736.52. The Dow Jones gained 907 points (1.7%) and cleared 54,000 for the first time, closing at 54,085.88. The Nasdaq Composite posted the biggest move of the three, up 2.6% to 26,584.99.
Crude was the trigger. According to the AP wrap, Brent fell 5.3% to $79.36, a second sharp drop since Qatar pointed to progress toward a short term deal between the United States and Iran, as Charles Schwab noted in its market update. WTI slipped back toward $75. Through July the barrel swung between $72 and $102 on Strait of Hormuz risk.
Why falling oil lifts the indices
Cheaper crude means less imported inflation, which gives the Fed more room. The bond market said as much. The 10 year Treasury yield fell to 4.62% from 4.70% on Monday and 4.75% on Friday. Lower yields feed straight into valuations, tech above all.
Daniela Hathorn at Capital.com framed it early Tuesday in TheStreet: equities are treating Middle East tension as an energy story rather than a growth and inflation story. Earnings help too. Roughly 85% of S&P 500 companies are beating estimates this season. Phil Segner of the Leuthold Group points out that profits have jumped about 50% while prices went sideways, which leaves stocks looking less expensive than they did.
One thing tempers the mood. CNN's Fear and Greed Index sits at 46, in neutral territory, per Benzinga. Two record closes and a sentiment gauge that refuses to run hot is a gap worth watching. The VIX is still around 16.
ADP is the first test before Friday payrolls
US futures are up 0.2% to 0.3% ahead of the open. Attention now shifts to jobs. ADP is expected at 68,000 private payrolls after 98,000, according to Investing.com. It opens a three step week that runs through ISM services and the official BLS report on Friday.
Gold is trading near $4,085 an ounce, helped by a softer dollar into those releases. Same driver again: rate cut expectations.
Key levels today
| Instrument | Level (support / resistance) | Change (August 4 session) | Scenario / What to watch |
|---|---|---|---|
| S&P 500 | Support at 7,620, former resistance and June peak at 7,610 | +1.8% | Katie Stockton (Fairlead Strategies) wants two clear consecutive closes above 7,620 to confirm the breakout. A slip back below would put the record in doubt. |
| WTI crude | Support at $75, bottom of the bearish channel | About -6.5% | Below $75 the bearish channel stays in control. A sharp bounce would signal doubts about the Hormuz deal. |
Ari Wald, head of technical analysis at Oppenheimer, sees high conviction tech and software leading the next leg if the breakout holds, as reported by Invezz.
Economic calendar
8:15 am ET, ADP employment (consensus 68,000, previous 98,000). Below 50,000 and rate cut bets firm up, pressuring the dollar and supporting indices. Above 100,000 and long yields climb back, with tech taking the hit.
9:45 am ET, S&P Global services PMI (consensus 53.6, previous 51.2). A print above 53 would back the soft landing read.
10:00 am ET, ISM services (consensus 54.5, previous 54.0). A reading under 50 would revive recession worries and change how the oil drop is read.
10:30 am ET, EIA crude inventories (previous -7.167 million barrels). Another big draw would help WTI defend $75.
Bottom line
The S&P 500 record rests on the oil pullback and softer yields, not on runaway sentiment. This afternoon's three releases will show whether that base holds into Friday's jobs report.
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This is not investment advice. Informational content only.