Stocks Hit Four-Month High:
U.S. stocks rallied last week (August 3–7, 2026) to their strongest weekly performance since mid-April, driven by strong Q2 earnings and a weaker-than-expected July jobs report that shifted attention to the Federal Reserve’s next interest-rate decision.
The S&P 500 Index advanced 3.57%, while the Nasdaq Composite Index gained 5.19%. The Dow Jones Industrial Average rose 2.96%. The MSCI EAFE Index, which tracks developed overseas stock markets, added 2.32%.1,2
Source: Bloomberg Finance, L.P. (Performance data normalized 07/31/26 = 0)
Best Week in Nearly 4 Months
Stocks opened the week strong as oil prices slid on news of diplomatic efforts in the Middle East. Big Tech led, which helped push the Dow Industrials to a record close.3
Investor optimism continued to build on Tuesday as stocks opened higher and climbed throughout the day. Strong Q2 corporate reports added fuel to the rally, lifting all three averages into a second day of robust gains.4
Markets opened higher on Wednesday but lost momentum as the day progressed. On Thursday, oil prices crept higher, and stocks went sideways as investors awaited updates on the Middle East and digested the final big trove of Q2 corporate results.5,6
Then, on Friday, an unexpected contraction in the labor market boosted stocks as investors hoped the jobs data might influence the Fed’s outlook for short-term rates.
Each major average logged its best weekly gain since mid-April.7
Sources: U.S. Department of the Treasury, Board of Governors of the Federal Reserve System
Labor Market Update
The economy unexpectedly shed 23,000 jobs in July, based on the Labor Department’s report released Friday. Economists expected 83,000 jobs to be created. July’s decline was the first monthly contraction in the labor market since February.8
Additionally, the number of jobs added in May and June was revised down by 103,000, reinforcing evidence of a cooling job market. Meanwhile, unemployment edged down to 4.1% as fewer people looked for work.8
This Week: Key Economic Data
Source: Bloomberg Finance L.P.
This Week: Companies Reporting Earnings
Source: EarningsWhispers
Author
Gary Aiken
Chief Investment Officer
Concord Asset Management
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Footnotes and Sources
1WSJ.com, August 7, 2026
2Investing.com, August 7, 2026
3CNBC.com, August 3, 2026
4CNBC.com, August 4, 2026
5CNBC.com, August 5, 2026
6CNBC.com, August 6, 2026
7WSJ.com, August 7, 2026
8WSJ.com, August 7, 2026
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