S&P 500 Hits All-Time High... Semiconductors and Caterpillar Surge, Overtaking the Magnificent 7

▲ U.S. Stock Market, Bull Market/AI Generated Image

With the Dow Jones Industrial Average jumping over 900 points and the S&P 500 breaking an all-time high, market leadership has shifted from the Magnificent 7 to semiconductors and Caterpillar.

According to the U.S. economic media outlet Barron's on August 4 (local time), the Dow Jones Industrial Average rose 906 points, up 1.7%. The S&P 500 climbed 1.5% to an all-time high, and the Nasdaq Composite surged 2%. All three indices joined the rally, spreading a tech-led rebound.

Semiconductor stocks led the rally. The Philadelphia Semiconductor Index soared 6.2%. In contrast, the Roundhill Magnificent 7 ETF remained flat. Gains in Microsoft (MSFT) and Nvidia (NVDA) alone were not enough to offset the weakness in other constituent stocks.

Caterpillar (CAT) surged 9% after announcing earnings that exceeded market expectations. Caterpillar alone accounted for over 445 points of the Dow's gains. In the price-weighted Dow index, Caterpillar is the second most heavily weighted stock after Goldman Sachs.

Buying returned to popular stocks that had plunged in July. While the iShares Semiconductor ETF dropped more than 20% in July, SanDisk (SNDK) rose over 7%. Marvell Technology (MRVL) jumped approximately 12%, ranking among the top gainers in the S&P 500.

Palantir Technologies (PLTR)'s strong earnings boosted the rebound in AI-related stocks. The S&P 500 and Nasdaq showed a trend to record their highest 4-day gains in over a year. The Dow's cumulative 4-day gain also reached its highest level since 2025.

[Article Summary]

-The Dow surged 906 points, and the S&P 500 hit an all-time high.

-The Philadelphia Semiconductor Index rose 6.2%, but the Magnificent 7 ETF remained flat.

-Caterpillar surged 9%, contributing over 445 points to the Dow's gains.

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