Markets took off last week after a deluge of economic announcements, particularly within the labor data. Are equity flows benefitting from an Early August Rush?
Monday S&P 500 1.48% | NASDAQ 2.13%
Equities began the week betting on positive developments in Iran as the tight grip of energy channels may be loosening. Manufacturing Data in the U.S. outpaced projections and earnings continued to roll in with strength across the board. Growth investors were out looking for buying opportunities while the 10-year treasury fell 5 basis points from last week.
Tuesday S&P 500 1.79% | NASDAQ 2.59%
Monday was good but trading on Tuesday was even better, carrying the DOW and the S&P500 into record territory. Oil prices softened on the day along with a par Jobs announcement on available positions, which boosted sentiment. August has started out strong with positive outlook for Q3 production across industries.
Wednesday S&P 500 0.17% | NASDAQ 0.83%
Tech valuations came under scrutiny, and capital expenditures worries, again, sent the Nasdaq lower. Value leaning companies continued their climb and SpaceX (SPCX) reported, suggesting strained spending on development. The drop on the day was also, in part, attributed to softer job data released by payroll giant ADP.
Thursday S&P 500 0.18%| NASDAQ 0.06%
Equities let off the throttle as indexes fell, although volatility measures also fell for the third consecutive session. More news on the international front in Iran spurred selling and a spike higher for oil. The 10-year treasury rose again, reversing the downward trend earlier this week.
Friday S&P 500 0.62% | NASDAQ 1.30%
Markets rallied from Thursday’s trading after job numbers for July showed layoffs in the private and government sectors. The
projections for a September rate hike by the Federal Reserve fell below a 50% probability (according to CME Group). The
prospect of a lower cost of borrowing boosted markets but the risks of less jobs could impact economic growth.
Conclusion S&P 500 3.58% | NASDAQ 5.19%
Markets were spurred on by a myriad of economic data last week. Manufacturing data kicked us off which, when higher
than expected, indicates strength underneath relative to shorter-term GDP productivity. Services productivity,
ultimately, still contributes to the overall economic picture. This reading has been stable for all of 2026 so far supporting
resilient GDP projections for the current quarter. Additionally, there were two important jobs announcements including
openings and changes in employment for July. In an economy looking at past data and forecasting future interest rates, the
bulls came out running last week. If inflation is kept at bay, energy concerns dissipate, and productivity remains positive, a
Q3 rate hike is less likely. Economic forecasts by the Federal Reserve, of course, is dependent on multiple economic factors.
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