Stocks rallied strong last week as investors cheered the last big week of Q2 corporate reports and a Friday jobs update that put the spotlight on the Fed's next move with short-term rates. The Standard & Poor's 500 Index advanced 3.57 percent, while the Nasdaq Composite Index gained 5.19 percent. The Dow Jones Industrial Average rose 2.96 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, added 2.32 percent.1,2 Best Week in Nearly 4 MonthsStocks opened the week strong as oil prices slid on news of diplomatic efforts in the Middle East. Big Technology companies 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 |
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Source: YCharts.com, August 8, 2026. Weekly performance is measured from Monday, August 3 to Friday, August 7. TR = total return for the index, which includes any dividends as well as any other cash distributions during the period. Treasury note yield is expressed in basis points. |
Labor Market UpdateThe 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 percent as fewer people looked for work. Become a valued client of Castle Financial to receive our more Comprehensive Weekly Global Macro Updates. Call us at 732-888-4994 to schedule an introductory call and second opinion on your investment portfolios. Among my many credentials, I am a Certified Financial Fiduciary always acting in the best interests of our valued clients and a former co-manager of a Fund rated 5 Stars by Morningstar. This Week: Key Economic DataTuesday: NFIB Small Business Optimism Index. Existing Home Sales. New York Fed Q2 Household Debt & Credit Report. Wednesday: Consumer Price Index (CPI). Monthly Treasury Balance. Thursday: Fed Speeches: Beth Hammack (Cleveland) and Thomas Barkin (Richmond). Weekly Jobless Claims. Producer Price Index (PPI). Friday: Retail Sales. Manufacturing & Trade: Inventories. University of Michigan Consumer Survey. Source: Investors Business Daily - Econoday economic calendar; August 7, 2026. The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to provide accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts are also subject to revision. This Week: Companies Reporting EarningsMonday: Simon Property Group, Inc. (SPG) Tuesday: Lumentum Holdings Inc. (LITE) Wednesday: Cisco Systems, Inc. (CSCO) Thursday: Applied Materials, Inc. (AMAT), Brookfield Corporation (BN) Source: Zacks, August 7, 2026. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your goals, time horizon, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule their earnings reports without notice. |
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"Optimism is the faith that leads to achievement." – Helen Keller |
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Egypt: Ancient Wonders, Newly RediscoveredEgypt is having a moment, and for good reason. With the opening of the Grand Egyptian Museum, which adds a stunning new chapter to Cairo's cultural landscape, now is a wonderful time to explore this ancient destination. Plan your visit carefully: a knowledgeable local guide and pre-arranged priority access to major sites will make all the difference. After exploring the pyramids and museums, consider adding a few days on a Nile River cruise from Luxor, where breathtaking scenery drifts past your window at a wonderfully unhurried pace. Tip adapted from TravelandLeisure.com9 Low-Impact Exercises for Healthy JointsHere are some of our favorite low-impact exercises:
Tip adapted from Healthline10 |
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Buried in wood from one end to the other, my head is exposed while I keep things together. What am I? Last Week's Riddle: What has hundreds or even thousands of ears but hears absolutely nothing? Answer: A cornfield. |
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Basilica di San Marco |
Footnotes And Sources1. WSJ.com, August 7, 2026 |
Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.
The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.
The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.
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