2026-08-04 · By SEPT AI
U.S. equities staged a powerful rally on Tuesday, with the tech-heavy Nasdaq Composite leading a broad-based advance that lifted all major indices into positive territory. The S&P 500 climbed 1.41%, while the Dow Jones Industrial Average posted a more modest 0.48% gain, as investors shook off lingering anxiety and piled into risk assets on the back of a wave of better-than-expected corporate earnings.
The rally was decisive and broad. The SPY, tracking the S&P 500, closed at $771.33 after touching a high of $773.41, recovering from an intraday low of $760.52. The tech-focused QQQ surged 2.22% to $723.85, outperforming the broader market. Small caps also joined the party, with the IWM jumping 1.38% to $301.69. The Dow, however, lagged, closing at $540.47 after a session that saw it swing between $536.00 and $542.09.
Despite the strong price action, the Fear & Greed Index remained deep in "Extreme Fear" territory at 25, suggesting that while traders were buying, the underlying sentiment remains fragile. The day’s move felt more like a relief rally than a full-throated endorsement of the economic outlook, driven largely by individual company news rather than a shift in macro sentiment.
The technology sector was the undisputed leader, fueled by a string of strong earnings reports and optimistic guidance. The QQQ’s 2.22% gain was the standout performance among the major ETFs, reflecting broad strength in software, semiconductors, and internet names. The rally was not limited to mega-caps; mid-cap and small-cap tech names also participated, with several posting double-digit percentage gains.
Energy stocks also had a solid session, supported by strong results from Devon Energy (DVN), which beat earnings estimates handily. However, the sector’s gains were tempered by mixed signals from the broader commodity complex. Industrials were a mixed bag, with Caterpillar (CAT) posting a strong beat but Cummins (CMI) missing estimates, keeping the sector’s overall performance in check.
Consumer discretionary stocks were buoyed by a strong report from Pinterest (PINS), which cited AI as a "clear accelerant" to its business. The stock’s post-earnings surge helped lift the sector, though Bed Bath & Beyond (BBBY) provided a notable drag after reporting disappointing results and announcing plans to eliminate non-performing assets.
The session was characterized by extreme moves in individual names, with several stocks posting gains or losses in excess of 20%.
The biggest winner by far was AMIX, which exploded 262.45% to close at $19.50 on massive volume of nearly 97 million shares. The move appeared to be driven by a catalyst not detailed in the day’s news feed, but the sheer scale of the rally suggests a significant corporate development or short squeeze.
Other notable gainers included INHD (+42.50% to $9.12), AEHG (+27.79% to $13.29), and ORIC (+26.60% to $13.47). ADEA surged 25.95% to $31.21, while TSAT gained 24.43% to $54.75. NXTC (+23.24%), CERT (+23.18%), and CDTG (+23.17%) also posted strong gains.
On the downside, PLTZ cratered 40.50% to $11.87, making it the day’s worst performer among the top movers. MOVE fell 26.89% to $13.73, while RAIN dropped 24.18% to $1.16. FUSE lost 23.13% to $1.03, and BETR declined 22.21% to $17.27.
Key Earnings: A Flood of Beats and Misses
Tuesday was a heavy day for earnings, with a clear tilt toward positive surprises.
Arista Networks (ANET) was a standout, reporting Q2 EPS of $0.95 versus estimates of $0.80, on revenue of $3.036 billion. The stock hit new all-time highs in after-hours trading, reflecting investor enthusiasm for the networking company’s growth trajectory.
Caterpillar (CAT) delivered a strong beat, with Q2 EPS of $7.77 versus the $6.25 consensus, on revenue of $20.543 billion. The results underscored continued strength in infrastructure and mining demand.
Devon Energy (DVN) also impressed, posting Q2 EPS of $2.03 versus $1.30 expected, on revenue of $5.1 billion.
Pinterest (PINS) reported better-than-expected Q2 earnings, with management highlighting AI as a key growth driver. The stock rallied on the news.
Upstart (UPST) surged after its Q2 earnings beat estimates, while Intapp (INTA) guided Q1 and FY2027 above consensus, sending shares higher.
On the disappointing side, International Flavors & Fragrances (IFF) missed estimates badly, with Q2 adjusted EPS of $0.82 versus $1.12 expected, and revenue of $1.954 billion versus $2.692 billion. The stock fell on the news.
Cummins (CMI) missed Q2 estimates, with EPS of $6.73 versus $7.33 expected, despite revenue of $9.5 billion.
Bed Bath & Beyond (BBBY) reported worse-than-expected Q2 results and announced a restructuring plan, sending shares lower.
MasterBrand (MBC) issued weak Q3 guidance, while Usana Health Sciences (USNA) slashed its full-year outlook, sending shares down.
There were no major economic releases on Tuesday, leaving the market to focus entirely on corporate earnings. The absence of macro headwinds allowed the earnings-driven rally to proceed without interruption. The bond market was relatively quiet, with yields edging slightly higher as risk appetite improved.
Notable insider buying activity was detected across several names, suggesting that corporate insiders see value at current levels.
KKR saw a strong buy signal with a score of 3, driven by 10 insider purchases totaling $40.1 million. TSM also scored a strong buy with 76 insider buys worth $1.1 million. ERIE and MELI each saw multiple insider buys, while RYAN had 9 insider purchases totaling $5.6 million. SLRC and DLHC also saw significant insider buying.
Cryptocurrency markets were relatively subdued on Tuesday, with Bitcoin and Ethereum trading in narrow ranges. There were no major catalysts to drive directional movement, and the asset class largely tracked the broader risk-on tone in equities without making any notable headlines.
All eyes will be on Wednesday’s economic calendar, which includes the ISM Services PMI for July. The services sector has been a key pillar of the economy, and any sign of weakness could reignite recession fears. Additionally, the weekly jobless claims data will be closely watched for any deterioration in the labor market.
On the earnings front, a lighter calendar is expected, but several notable names are still set to report, including some in the consumer and technology sectors. The market’s ability to sustain Tuesday’s momentum will depend on whether the positive earnings momentum can continue and whether macro data provides any surprises.
For now, the bulls have seized control, but with the Fear & Greed Index still in extreme fear territory, the rally’s durability remains an open question.
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