NEW YORK, August 7, 2026, 16:10 EDT — Trading wrapped up for U.S. cash markets.
- The S&P 500 finished at an all-time high of 7,757.54. The Nasdaq rose 1.30%, and the Dow advanced 0.28%.
- The jobs report resulted in a negative data surprise of 206,000 jobs. The chance of a rate increase in September declined to 44%.
- July CPI is due Wednesday, with forecasts pointing to headline inflation at 3.4% and core inflation at 2.5%.
U.S. equities ended up on Friday, with the S&P 500 reaching a new all-time high. The Nasdaq outperformed, supported by softer payroll data that eased prospects of a rate increase in September.
Based on a straightforward information-shock metric, the report fell short by 206,000 jobs. July’s figure missed expectations by 103,000, and adjustments to prior data pulled another 103,000 jobs.
That was significant. Investors viewed soft labor data as a signal for rate cuts rather than as evidence of a downturn. Growth trades remained buoyant, bolstered by an exceptionally robust earnings season.
Friday’s closing scoreboard:
| Benchmark | Friday close | Friday change | Weekly change |
|---|---|---|---|
| S&P 500 | 7,757.54 | up 0.62% | up 3.58% |
| Nasdaq Composite | 26,690.62 | up 1.30% | up 5.19% |
| Dow Jones Industrial Average | 54,036.52 | up 0.28% | up 2.96% |
Weekly changes are based on July 31 closing figures. Each of the three indexes saw its biggest weekly percentage rise since mid-April.
The Nasdaq gained 5.19% during the week, compared with a 2.96% increase for the Dow. The 2.23-point difference signals a rebound powered mainly by technology and longer duration assets.
The comparison of labor and rates highlights the reason:
| Signal | Latest reading | Comparison | Change |
|---|---|---|---|
| July nonfarm payrolls | -23,000 | +80,000 consensus estimate | -103,000 |
| May-June payroll adjustment | -103,000 | Previously reported data | -103,000 |
| Three-month average job creation | +20,000 | +77,000 over prior three months | -57,000 |
| September rate hike odds | 44% | 57% ahead of the data | -13 points |
The drop in the unemployment rate came with a caution. The labor force declined by 264,000 and participation edged down to 61.4%. The unemployment rate decreased to 4.1% from 4.2%.
Seasonal effects during summer might have inflated the payroll figure. Local-government education lost 49,600 positions, while private sector employment grew by 30,000.
Corporate earnings provided support. Out of 436 S&P 500 companies reporting, 85.1% exceeded expectations. This figure is 17.1 percentage points higher than the typical rate observed since 1994.
AE Wealth Management’s chief market economist Tom Siomades said “earnings have been stellar.” Reuters
Airbnb NASDAQ:ABNB and Atlassian NASDAQ:TEAM topped the list of earnings gainers. The Trade Desk NASDAQ:TTD finished at the bottom of the S&P 500 following disappointing guidance.
Analyst moves reflected the divide. Upgrades were prompted by solid execution, while downgrades resulted from soft outlooks for future demand.
| Company | Research firm | Recommendation change | Price-target change |
|---|---|---|---|
| Airbnb | Wedbush | Upgraded from Neutral to Outperform | Raised from $152 to $200 |
| Atlassian | BofA Securities — Bank of America NYSE:BAC | Upgraded from Neutral to Buy | Target increased from $105 to $175 |
| Trade Desk | Raymond James Financial NYSE:RJF | Downgraded from Market Perform to Underperform | No target provided |
| Trade Desk | Truist Securities — Truist Financial NYSE:TFC | Downgraded from Buy to Hold | Target revised from $35 to $16 |
(Source: )
Inflation is now in focus. The CPI report due Wednesday will challenge Friday’s rate-relief rally.
| Date and time, EDT | Catalyst | Estimate or focus | Investor relevance |
|---|---|---|---|
| Tuesday, Aug. 11, 17:00 | CoreWeave NASDAQ:CRWV Q2 earnings | No estimate available | AI infrastructure demand |
| Wednesday, Aug. 12, 08:30 | July CPI | 3.4% headline; 2.5% core year-on-year | Fed policy in September |
| Wednesday, Aug. 12, 16:30 | Cisco Systems NASDAQ:CSCO Q4 earnings | No estimate available | Network and AI order trends |
| Thursday, Aug. 13, 08:30 | July PPI | No estimate available | Inflation at producer level |
| Thursday, Aug. 13, 16:30 | Applied Materials NASDAQ:AMAT Q3 earnings | No estimate available | Semiconductor equipment trends |
| Friday, Aug. 14, 08:30 | July retail sales | No estimate available | Trends in consumer spending |
Markets anticipate headline CPI will come in at 3.4% and core inflation at 2.5%. A figure below these estimates would reinforce Friday’s rally, while a higher print could swiftly lead to renewed expectations for a rate increase.
Risks: Fluctuations in oil prices may reignite inflation concerns. Further deterioration in the labor market could shift rate cuts from stimulus to a source of growth anxiety.
The week closed at new highs, yet lacked widespread economic optimism. Earnings continued to fuel the market’s reaction to negative news.
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