NEW YORK, Aug. 4 (Xinhua) -- U.S. stocks recorded solid gains on Tuesday as the market monitored developments in the Middle East and digested a fresh wave of corporate earnings.

Traders work on the floor of the New York Stock Exchange in New York, the United States, on March 2, 2026. (File photo: Xinhua)

The Dow Jones Industrial Average rose 907.47 points, or 1.71 percent, to 54,085.88. The S&P 500 added 136.02 points, or 1.79 percent, to 7,736.52, while the technology-heavy Nasdaq Composite Index soared 671.1 points, or 2.59 percent, to 26,584.99.

Six of the 11 primary S&P 500 sectors closed in positive territory, with technology and materials leading the gainers by advancing 4.09 percent and 1.99 percent, respectively. Utilities and energy led the decliners, slipping 0.6 percent and 0.49 percent, respectively.

Global energy benchmarks saw deep losses after U.S. Treasury Secretary Scott Bessent confirmed in public media comments that active diplomatic discussions with Iranian representatives are underway. West Texas Intermediate crude for September delivery decreased 4.57 U.S. dollars, or 5.69 percent, to settle at 75.77 dollars a barrel on the New York Mercantile Exchange. Brent crude for October delivery lost 4.41 dollars, or 5.26 percent, to settle at 79.36 dollars a barrel on the London ICE Futures Exchange.

In corporate developments, shares of SpaceX and Advanced Micro Devices surged more than 9 percent and 7 percent, respectively, during regular trading hours ahead of their scheduled earnings disclosures after the bell. In its first quarterly report since going public, SpaceX reported a 92-percent year-on-year surge in revenue.

Enterprise software firm Palantir Technologies surged nearly 30 percent following the release of blowout second-quarter financial results. Palantir CEO Alex Karp characterized the performance as "otherworldly," attributing the growth to surging global demand for artificial intelligence sovereignty solutions.

Semiconductor equities continued to extend their recent recovery following a severe washout in July. Micron Technology advanced 7.62 percent, while Marvell Technology surged 12.81 percent.

Among Dow components, industrial machinery giant Caterpillar jumped 5.6 percent to lead the index after delivering better-than-expected quarterly results and raising its full-year revenue outlook.

Market strategists noted that strong aggregate quarterly earnings and reassuring guidance on data center capital expenditures from major technology hyperscalers have helped restore institutional confidence across broader equity markets.

"From watching the stock market zoom higher over the past three sessions, you wouldn't think there's anything wrong with the world," said Thierry Wizman, global FX & rates strategist at Macquarie Group. "After all, even the semiconductor makers have recovered from their big skid in July after some AI hyperscalers managed to quell analysts' fears about whether their data center investments are excessively eating into cash-flow."