Stocks Begin August with Gains: Mess with the Bull and You May Get the Horns!

After a volatile and downbeat July, U.S. stocks have delivered a constructive performance so far this week, as August has the bulls back in control.

The major averages are hovering near record highs despite geopolitical headline risks and inflationary fears. A positive combination of favorable earnings reactions, falling oil prices, and a pullback from rising Treasury yield pressure in July has provided the "risk-on" momentum. As of Thursday's close, the S&P 500 (SPX) is up 2.9% this week, the tech-heavy Nasdaq-100 (NDX) has jumped 3.9%, and the Dow Jones Industrial Average ($DJI) is higher by 2.7%. Prior to the modest pullback on Thursday, the Dow settled at a record high, while the S&P 500 and Russell 2000 (RUT) both reached intraday highs on Wednesday.

Although the tech-heavy Nasdaq-100 remains 4.5% below its all-time high as of Thursday's close, technology has been the market's primary driver this week. Tech and AI enthusiasm returned after July's slide, as earnings reports reinforced the theme that enterprise spending on artificial intelligence infrastructure remains strong.

Palantir (PLTR) is one of the standout performers this week, rising more than 26% after posting another strong quarter that highlighted ongoing commercial AI adoption. Nvidia (NVDA) is up 9% this week after Elon Musk said SpaceX (SPCX) decided to build exclusively on its chips due to their best-in-class architecture. Intel (INTC), +10.7%, and Advanced Micro Devices (AMD), +2.8%, have also posted solid gains this week. The Philadelphia Semiconductor Index (SOX) is up 6.5% this week, reflecting the renewed interest in chip stocks.

According to FactSet data through last week, S&P 500 earnings growth has accelerated to 47%, up from 38% the previous week. Even excluding unusually large contributions from Alphabet (GOOGL) and Amazon (AMZN), earnings growth remains well above expectations. Post-earnings pullbacks in SanDisk (SNDK), Western Digital (WDC), and Datadog (DDOG) this week did little to dent the broader earnings momentum. The massive gains in those stocks this year may have contributed to the pullbacks, even though all three produced better-than-expected results this quarter.

Lower oil prices helped calm some inflation fears, with crude down about 10% so far this week to near $77 per barrel. Crude prices have pulled back on optimism surrounding a potential deal with Iran and the possible reopening of the Strait of Hormuz. Along with the pullback in oil, stabilization in yields, with the 10-year Treasury yield now below 4.7%, has helped ease inflation concerns. While higher yields have created volatility recently, the bond market's impact on stocks has been largely offset by stronger-than-expected corporate results.

So far, this week has reinforced the 2026 narrative that earnings matter more than macro concerns. The major indices remain near all-time highs because corporate America continues to deliver stronger-than-expected profit growth. AI remains the dominant investment theme, with technology stocks leading gains and supporting broader market sentiment. As earnings season enters its final weeks, Wall Street's focus remains on whether strong profit growth, AI spending, and a resilient consumer can continue to outweigh concerns about inflation and geopolitical risks. After a volatile July, it appears the bulls are back in control this month, at least so far.

Economic Calendar, Monday Aug. 10: N/A

Earnings Snapshot, Monday

• Premarket: B, CRC, FERG, MNDY, RDNT
• Postmarket: ACM, ALC, ACHR, ASTS, BZH, HIMS, IHRT, PLUG, QUBT, RKLB, SPG, UPWK

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