Stocks surged last week as strong Q2 earnings, falling oil prices, and a weaker-than-expected jobs report boosted investor optimism and fueled the major averages’ best weekly gains since April.
The S&P 500 advanced 3.57%, while the Nasdaq Composite gained 5.19%. The Dow Jones Industrial Average rose 2.96%. The MSCI EAFE Index added 2.32%.1,2
Stocks Post Best Week Since April
Stocks opened the week strong as oil prices slid on news of diplomatic efforts in the Middle East. Big Tech 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
Labor Market Cools
The 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.8
Economic Data To Watch
Tuesday: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.
Upcoming Earnings Reports
Monday: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.
Footnotes And Sources1. WSJ.com, August 7, 2026
2. Investing.com, August 7, 2026
3. CNBC.com, August 3, 2026
4. CNBC.com, August 4, 2026
5. CNBC.com, August 5, 2026
6. CNBC.com, August 6, 2026
7. WSJ.com, August 7, 2026
8. WSJ.com, August 7, 2026
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.