U.S. stocks generally had a positive month in July, with several indexes posting gains. However, the Dow Jones Industrial Average, which eked out a 0.1% increase, lagged other benchmarks such as the S&P 500 (2.2%) and Russell 2000 (1.7%) indexes.

Nonetheless, the Dow Jones Industrial Average, consisting of 30 blue chip companies, had positive performers. These two stocks led the way.

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1. Caterpillar

Caterpillar's (CAT -2.01%) shares increased 12.8% during the month, making it the index's top gainer. The company, part of the industrial sector, manufactures products such as construction and mining equipment, natural gas engines, and industrial gas turbines.

While there wasn't any specific news that drove the increase, the market appears to have reacted positively to recent tariff agreements that imposed less severe levies than those previously bandied about by the Trump administration. At the end of April, before any deals were reached, management stated that tariffs could increase Caterpillar's costs by $350 million in the second quarter.

Caterpillar will report second-quarter results on Aug. 5.

2. Nvidia

Nvidia's (NVDA -2.26%) stock price performance finished a close second, increasing 12.6% in July. The company's products are widely used in games, data centers, and autos.

It's created solutions for generative artificial intelligence (AI), and that's been rewarding for the company and shareholders. Last month's stock price move was partly due to the Trump administration reversing its previous policy and approving Nvidia's sale of H20 chips to China. These are used for AI applications.

There have also been ongoing trade discussions between the U.S. and Chinese governments. Any easing of tensions could prove beneficial to Nvidia.

The company reported fiscal first-quarter results, which ended on April 27, at the end of May. Revenue grew 69% year over year to $44.1 billion.

Nvidia has scheduled its second-quarter earnings release for Aug. 27.