US Stocks Surge Overnight: Dow Soars Over 800 Points to Record High, Philadelphia Semiconductor Index Jumps 5%, ARM Rockets 12%

US stocks staged a powerful rally on August 4, with all three major indices surging sharply higher. The Dow Jones Industrial Average and S&P 500 both hit fresh intraday record highs, signaling a significant revival in market risk appetite. The semiconductor sector led the charge, with the Philadelphia Semiconductor Index (SOX) skyrocketing over 5%, propelling technology stocks broadly higher. Meanwhile, commodity markets diverged, with international oil prices suffering heavy losses while precious metals climbed in tandem.

As of 23:00 Beijing time, the Dow Jones Industrial Average (DJI) had surged more than 800 points at one stage, rising 1.51%; the Nasdaq Composite (IXIC) gained 1.63%; and the S&P 500 (SPX) advanced 1.16%. According to earlier reports from NetEase Finance, both the Dow and S&P 500 had already set record highs at the opening bell, reflecting extremely robust market momentum.

Editor's note: The above reflects real-time early-session data as of 23:00 Beijing time. According to official closing data later reported by CNBC, TradingKey, and other media outlets, the three major indices ultimately extended their gains by the close:

Index	Early Session (23:00 Beijing Time)	Closing Gain	Closing Level
Dow Jones Industrial Average (DJI)	+1.51% (over 800 pts intraday)	+1.67%	54,067.17
Nasdaq Composite (IXIC)	+1.63%	+2.08%	26,454.18
S&P 500 (SPX)	+1.16%	+1.46%	7,711.45 (officially closed above 7,700)

Chip and Optical Communications Sectors Erupt in Tandem

The semiconductor sector became the focal point of capital flows during the session, with the Philadelphia Semiconductor Index surging nearly 5% intraday in a broad-based rally. Chip design giant ARM (ARM) delivered the most ferocious performance, with gains steadily expanding throughout the session to ultimately exceed 12%, leading all index constituents. Networking and communications chipmaker Marvell Technology (MRVL) followed closely with a 10% gain.

Notably, ARM's explosive surge was not driven solely by sector sentiment: the company's latest quarterly earnings report revealed revenue and earnings per share that comprehensively exceeded consensus analyst expectations, while management simultaneously raised full-year revenue and profit guidance. The market broadly interpreted this as reflecting the significant success of its transition to the high-margin Armv9 architecture—which commands notably higher licensing royalty rates than previous generations—coupled with accelerating demand for custom AI chips from hyperscale cloud computing providers. Following the earnings release, multiple institutions promptly raised their price targets, with the average Street target rising to approximately $274 (as reported by CNBC and TradingKey).

Legacy chip giant Intel (INTC) also staged a long-awaited strong rebound, with shares surging over 9% at one point. The storage segment performed equally well, with SanDisk jumping over 7%, while Micron Technology (MU) and Advanced Micro Devices (AMD) both gained more than 4%.

The optical communications sector posted even more aggressive gains than semiconductors, extending its recent strong momentum. Applied Optoelectronics (AAOI) surged over 18% intraday, Coherent (COHR) jumped over 13%, Lumentum (LITE) rose over 7%, and glass and optical communications materials giant Corning (GLW) advanced more than 5%. This collective eruption across the sector reflects sustained optimistic market expectations for high-speed data transmission infrastructure demand.

According to closing data disclosed by TradingKey, semiconductor stock gains further expanded into the close:

Ticker	Early Session (23:00 Beijing Time)	Closing Gain
Philadelphia Semiconductor Index (SOX)	Nearly 5%	+6.21%, closed at 11,440.22
ARM	Over 12%	+14.89%
Intel (INTC)	Over 9%	+9.82%
Advanced Micro Devices (AMD)	Over 4%	+7.91%
SanDisk	Over 7%	+10.46%

China-Concept Stocks Show Significant Divergence

In contrast to the broad-based rally in US markets, popular China-concept stocks exhibited pronounced divergence during the session. The Nasdaq Golden Dragon China Index came under pressure, falling over 1% intraday.

The education sector faced selling, with New Oriental (EDU) tumbling more than 5%, making it one of the weakest performers among China-concept stocks. Fresh grocery e-commerce platform Dingdong Maicai (DDL) fell over 4%, while video platform Bilibili (BILI) and internet technology company NetEase (NTES) declined more than 2% and 1%, respectively.

Despite the majority of China-concept stocks trending lower, cloud computing services provider Kingsoft Cloud (KC) bucked the trend to surge over 7%, demonstrating strong buying support. E-commerce giant Alibaba (BABA) successfully reversed its losses intraday, turning positive after earlier declines.

Crude Oil Plunges While Precious Metals Climb

Commodity markets experienced violent swings. Against a backdrop of potential breakthroughs in geopolitical tensions, international oil prices suffered heavy losses. WTI crude oil futures plunged more than 5% intraday, and while losses narrowed by press time, prices remained deeply in the red at -4.53%; Brent crude oil futures also fell nearly 4%.

The immediate catalyst for the oil price collapse came from the latest remarks by US Treasury Secretary Scott Bessent. According to Xinhua News Agency, citing US media reports from August 4, Bessent stated that the United States could reach an agreement with Iran as soon as the following day to reopen the critical Strait of Hormuz. If such a deal materializes, it would significantly alleviate concerns over global crude supply disruptions, thereby exerting enormous downward pressure on oil prices.

The tensions surrounding the Strait of Hormuz have deep roots. According to Wikipedia entries, the United States and Israel launched joint airstrikes against Iran on February 28, with Iran's Supreme Leader Khamenei reportedly killed in the operation; Iran's Revolutionary Guard subsequently announced between March 2 and 4 that it had blockaded the strait and claimed full control, briefly driving Brent crude prices above $100 per barrel and as high as $126 per barrel—marking the fastest oil price surge recorded in recent geopolitical conflicts. This waterway handles approximately 20% of global seaborne crude oil trade and roughly 20% of global liquefied natural gas transportation, with about one-third of China's crude oil imports transiting through it, making it the key backdrop for why this "reopening rumor" could move global energy and inflation expectations.

In a CNBC interview, Bessent further elaborated that the agreement would guarantee "freedom of movement" for transiting vessels, and that Iran would not be permitted to charge tolls on passing ships. He also revealed that once the strait reopens, hundreds or even thousands of tankers that have been waiting could be released, potentially triggering a significant "relief trade" that would drive oil prices even lower. However, according to concurrent Reuters reports, Iran continues to demand retention of supervisory authority over inbound shipping lanes in mediation talks with Oman, with both sides still divided on agreement details, leaving the final signing uncertain.

In stark contrast to crude oil's weakness, precious metals markets climbed amid dual support from safe-haven demand and monetary policy expectations. Spot gold rose 0.60% to $4,078.807 per ounce; spot silver posted even more aggressive gains of 2.04%, reaching $59.344 per ounce.

Market Driver Analysis

This powerful breakout to record highs in US stocks, particularly with rate-sensitive technology and semiconductor sectors leading the charge, likely reflects the resonance of multiple factors. First, market expectations regarding the Federal Reserve's future monetary policy path may be undergoing subtle shifts, with some capital beginning to bet that the tightening cycle is approaching its end. Second, the explosion in computing power demand driven by artificial intelligence (AI) continues to provide strong earnings support and valuation upside potential for upstream hardware manufacturers in semiconductors and optical communications.

Furthermore, Bessent's remarks about a potential agreement with Iran, while hammering oil prices, represent a significant positive for the broader economy and corporate cost structures. A notable retreat in energy prices would help ease inflationary pressures and reduce operating costs for manufacturing and transportation industries, thereby enhancing corporate profitability from the cost side—providing additional logical support for the broad-based equity rally.

From a sector rotation perspective, capital is flowing out of certain China-concept stocks that had previously posted substantial gains, as well as energy sectors directly impacted by geopolitical events, and rotating into semiconductor hardware names that stand to benefit from AI industrialization and have undergone sufficient corrections. Investors are now closely watching upcoming macroeconomic data releases and corporate earnings reports to assess the sustainability of this record-breaking rally.

The chart above traces the two key threads behind this breakout to record highs in US equities: the geopolitical dimension (strait agreement expectations → oil price retreat → inflation cooling) and the industrial fundamental dimension (AI-related earnings beats → semiconductor stock leadership), with both forces resonating in tandem during the session.