Dow rallies 600 points to fresh record on earnings strength, hope around U.S.-Iran deal: Live updates

The Dow Jones Industrial Average experienced a significant rally, climbing 617 points, or 1.1%, to achieve a new all-time high. This surge in the stock market index can be attributed to strong corporate earnings reports and optimism surrounding the potential reopening of the Strait of Hormuz. Over the course of the past week, the S&P 500 gained more than 6%, while the Nasdaq Composite increased by more than 9%.

The positive momentum was further fueled by the soaring performances of companies like Disney and Eli Lilly, which both surpassed earnings expectations.

The S&P 500's ascent to an all-time high was supported by Disney, which reported better-than-anticipated third-quarter earnings in the form of a 2% increase in its stock price. Additionally, Eli Lilly's shares climbed by 7% following a second-quarter performance that exceeded market projections. These impressive earnings results have contributed to an earnings season where over 84% of S&P 500 companies managed to exceed expectations, as reported by FactSet.

Despite the notable gains in the stock markets, investors remained cautious about the prospects of a U.S.-Iran deal to reopen the Strait of Hormuz. While oil prices exhibited moderate fluctuations, Brent crude futures for October delivery experienced a 1% gain at approximately $80 per barrel. Meanwhile, Advanced Micro Devices and SpaceX faced declines, with the latter's shares plummeting 12% after the company disclosed a sixfold increase in capital expenditures during its second-quarter report.