NEW YORK, August 5, 2026, 12:07 p.m. EDT — U.S. cash equities began trading.
- The Dow gained 0.87%, as the Nasdaq and Russell 2000 declined.
- Both major exchanges saw more stocks falling than rising. Around 300 stocks in the S&P 500 declined.
- Private sector payroll growth fell short of forecasts, as the ISM services prices index climbed to 70.3.
The Dow posted an almost 0.9% rise on Wednesday, while the majority of U.S. equities lagged. The S&P 500 saw only a slight increase. The Nasdaq Composite and Russell 2000 both traded in negative territory.
The divergence carries greater significance than the record itself. Latest ETF prices revealed a Dow advantage of 1.10 percentage points over the Nasdaq-100 tracker. The spread with small caps widened to 1.18 points.
Key indexes
| Index | Intraday level | Change |
|---|---|---|
| Dow Jones Industrial Average | 54,558.10 | up 0.87% |
| S&P 500 | 7,745.81 | gained 0.12% |
| Nasdaq Composite | 26,578.01 | slipped 0.03% |
| Russell 2000 | 3,026.11 | fell 0.36% |
Readings were taken at about 11:33 a.m. EDT. Figures are intraday and subject to change until markets close.
Cap weighting played a role as well. The S&P 500 index finished unchanged, in contrast to its equal-weight counterpart, which dropped 0.38%. The data points to gains driven by some bigger names, rather than a wide-spread push for risk across the market.
Four ways to measure market breadth
| Comparison | Leader | Laggard | Performance gap |
|---|---|---|---|
| Dow against Nasdaq 100 | DIA +0.75% | QQQ -0.35% | 1.10 points |
| Dow against small caps | DIA +0.75% | IWM -0.43% | 1.18 points |
| Cap-weighted S&P vs equal-weight S&P | SPY -0.01% | RSP -0.38% | 0.37 points |
| Healthcare against technology | XLV +0.71% | XLK -0.22% | 0.93 points |
ETF prices reflect data from 11:52 a.m. EDT. Percentage-point differences are based on those intraday changes.
In late-morning trading, decliners on the NYSE outnumbered advancers 1,489 to 1,077. On the Nasdaq, losers led by 2,288 to 1,724. However, 22 out of the 30 Dow components were higher.
This extends beyond a rally in just one stock. However, it does not yet signal a definitive shift to risk-on sentiment.
Macro data highlighted the divergence. Demand for services remained steady, while job growth slowed and input costs rose. This combination supports near-term earnings and pricing strength rather than long-term growth projections.
Wednesday’s economic highlights
| Release | July reading | Reuters estimate | June reading |
|---|---|---|---|
| Private payroll growth | +44,000 | +70,000 | +95,000, revised |
| ISM Services PMI | 54.1 | — | 54.0 |
| ISM new orders | 57.2 | — | 55.1 |
| ISM employment | 47.4 | — | 51.2 |
| ISM prices paid | 70.3 | — | 67.7 |
The payroll consensus figure comes from a Reuters survey. For most ISM indexes, a value over 50 signals growth.
Automatic Data Processing NASDAQ:ADP announced an increase of just 44,000 jobs in the private sector. Chief economist Nela Richardson stated “rapid pay growth implies supply constraints.” The pay growth rate for those switching jobs hit 7.0%, the quickest rise since August 2025. ADP Media Center
The inflation indicator was difficult to ignore. According to ISM’s Steve Miller, services employment was below 50 in 12 of the last 18 months. However, prices were above 70 for the fourth month in five.
Investors adopted the same approach with earnings. Shares rose for firms demonstrating strong near-term demand and monetization of AI. Stocks fell on guidance that simply matched expectations.
Highlighted market movers
| Company | Intraday move | Main catalyst |
|---|---|---|
| Nvidia NASDAQ:NVDA | +3.4% | SpaceX named Nvidia hardware for use in computing systems |
| Advanced Micro Devices NASDAQ:AMD | -6.7% | Outlook above consensus did not meet high market expectations |
| SpaceX NASDAQ:SPCX | -8.6% | Initial post-listing results weighed down by major spending |
| Eli Lilly NYSE:LLY | +2.9% | Company increased its 2026 revenue target to $85 billion-$87 billion |
| Walt Disney NYSE:DIS | +2.0% | Profits exceeded estimates as parks’ revenue climbed by 10% |
| Uber Technologies NYSE:UBER | -6.7% | Profit outlook disappointed; $10 billion-plus pledged for robotaxi |
| Arista Networks NYSE:ANET | +3.1% | Q3 revenue projection surpassed market forecasts |
Activity was noted at approximately 11:52 a.m. EDT and is still subject to revision.
Company triggers were validated via earnings disclosures and Reuters investigations.
AMD highlights the elevated expectations for earnings in the market. The company projected third-quarter revenue of around $13 billion, surpassing the consensus estimate of $12.52 billion. Revenue from data centers climbed to $6.72 billion, more than twice the previous figure. CEO Lisa Su anticipates this segment to more than double once more by 2027.
According to Bernstein analyst Stacy Rasgon, investors were already “fairly bullish.” Shares nevertheless declined by over 6%. The results did not satisfy expectations. Reuters
Healthcare stood out as the standout option. The sector’s ETF rose 0.71%, contrasting with a 0.22% fall in technology. Over the past three months, the S&P healthcare index has climbed 11.2%, outpacing the S&P 500’s 6% gain.
Healthcare funds attracted $2.44 billion in July. The sector was valued at nearly 18 times forward earnings, while the S&P 500 traded at close to 20 times. JPMorgan Chase NYSE:JPM strategists, led by Dubravko Lakos-Bujas, highlighted its “attractive valuation and diversification benefits.” Reuters
Wednesday saw rating changes reflecting that trend. Three chosen healthcare stocks were upgraded, while downgrades were issued for consumer and auto-related cyclicals.
Analyst recommendations highlighted
| Company | Brokerage | Recommendation change | Price target |
|---|---|---|---|
| Bristol Myers Squibb NYSE:BMY | Argus Research | Hold raised to Buy | $75 |
| Humana NYSE:HUM | Morgan Stanley NYSE:MS | Underweight increased to Equal-weight | $370 |
| Waters NYSE:WAT | TD Cowen | Hold upgraded to Buy | $475 |
| Aptiv (NYSE:APTV) | Deutsche Bank NYSE:DB | Buy cut to Hold | $56 |
| Best Buy NYSE:BBY | Jefferies Financial Group NYSE:JEF | Buy reduced to Hold | $85 |
Briefing.com published the following highlighted recommendations at 8:48 a.m. EDT.
Treasury supply met expectations, with the department announcing $125 billion in securities and maintaining nominal coupon auction sizes at current levels for several more quarters. The auction is set to generate around $28.7 billion in new cash.
Liquidity is not an immediate issue. Treasury projects its cash balance will rise to $950 billion by September, with the total potentially hitting around $1.05 trillion, give or take $50 billion, towards the end of October. This cash build-up may draw liquidity from financial markets.
The upcoming employment report on Friday is seen as a key indicator. Analysts project 80,000 jobs added and an unemployment rate at 4.2%. Soft hiring paired with solid wages would favor defensive plays. However, a robust report could increase rate expectations and weigh on long-duration assets.
Risks: ADP data has frequently failed to accurately reflect the official private payroll figures. A wider recovery in earnings could offset Wednesday’s signal of market narrowness. If energy prices climb again, this could push yields up and intensify a technology sector selloff.
Related articles: NASDAQ:ADP
