Dow hits 24th record of 2026 as earnings lift blue chips

The Dow Jones Industrial Average rose 0.49 percent to 54,349.00, its 24th record close of the year, as strong blue-chip earnings outweighed a slide in the Nasdaq Composite.

"It's just a straight rocket shot that we've gone up," said Kenny Polcari, chief market strategist at SlateStone Wealth.

Amgen, Goldman Sachs and Nvidia contributed roughly 207 points, or 79 percent of the Dow's gain, preliminary data showed. The S&P 500 slipped 0.17 percent to 7,723.53, while the Nasdaq Composite dropped 0.83 percent to 26,363.44.

The divergence points to rotation into value and blue-chip names as investors position ahead of the July jobs report due Aug. 7, which could reset expectations for a Federal Reserve rate increase.

Amgen gained about 3.7 percent after second-quarter sales rose 9 percent and the drugmaker lifted its 2026 revenue forecast by $1 billion. Walt Disney climbed roughly 3.6 percent following a quarterly profit beat. Alphabet dropped, shaving about 95 points off the Dow and nearly offsetting Amgen's contribution on its own.

The Dow has risen 2,754.86 points, or 5.34 percent, over five sessions since July 29, accelerating after Caterpillar powered the index above 54,000 for the first time on Aug. 4. The index touched an intraday high of 54,744.33 before finishing 395.33 points below that level. Breadth lagged the headline move: decliners outnumbered advancers by 1.07-to-1 on the New York Stock Exchange and 1.29-to-1 on the Nasdaq.

Earnings Carry the Rally, But Breadth Lags

Adjusted earnings for the S&P 500 have risen 31.1 percent from a year earlier, with technology sector profits up 72 percent, according to early data. "Corporate profits have been spectacular," said Eric Kuby, chief investment officer at North Star Investment Management.

Private payrolls rose by 44,000 in July, while the ISM services index came in at 54.1, below the 54.5 forecast but still above the expansion threshold. Traders priced the probability of a Fed rate increase in September at 54.9 percent, down from 58.3 percent a week earlier. The 10-year Treasury yield was near 4.63 percent, while Brent crude settled around $79 a barrel after falling more than 5 percent on Aug. 4 as hopes grew for a deal to reopen the Strait of Hormuz.

Jobs Report Looms as Next Test

The July payrolls report due Aug. 7 is the next event for rate expectations, followed by consumer prices on Aug. 12 and producer prices on Aug. 13. A strong reading could push Treasury yields higher and renew expectations for a rate increase, while a breakdown in Middle East diplomacy could lift oil prices and inflation.

The Dow is up 12.5 percent for the year, while the S&P 500 closed above 7,700 for the first time on Aug. 4. The record appears more durable if a wider group of Dow components participates in Thursday's session. If not, a handful of higher-priced constituents will continue to carry most of the index's progress.

This article is for informational purposes only and does not constitute investment advice.