Fresh Record Highs

What a week it was on Wall Street and beyond. Investors started August with a mix of geopolitical relief, fresh record highs, and a jobs report that left more than a few economists scratching their heads. The combination kept trading desks busy and coffee pots working overtime. Since last Friday’s close the S&P 500 gained 268 points, or 3.58%; the NASDAQ advanced 1,317 points or 5.19%, while the DOW added 859 points or 1.62%. Here’s a look at the five biggest market and economic developments that shaped the past few trading days.

Oil Plunges on Iran Talks

President Trump’s decision to pause planned strikes on Iran and pivot back toward diplomacy sent oil prices tumbling hard on Monday. West Texas Intermediate oil plunges about 5 percent to around $80 a barrel while Brent followed suit. Traders quickly priced in hopes that the Strait of Hormuz might reopen sooner rather than later. Lower energy costs ease near-term inflation worries and give consumers a bit more breathing room at the pump. It also handed equities a welcome tailwind. Sometimes the best market catalyst is simply the absence of new missiles flying. The relief rally that followed showed how quickly sentiment can flip when geopolitical risk premiums shrink.

Stocks Race to Fresh Record Highs

The Dow Jones Industrial Average notched multiple fresh record highs, briefly clearing the 54,000 level, while the S&P 500 finally punched through 7,700 for the first time and closed at a fresh record near 7,737 on Tuesday. The NASDAQ joined the party with solid gains. Strong corporate results, oil plunges, and the Iran de-escalation narrative combined to push indexes higher through much of the week. By Friday the S&P was still holding near those elevated levels despite some late-week digestion. It felt a bit like watching a marathon runner hit a personal best after months of training—impressive, but you still wonder how long the pace can last.

Factories Fire on All Cylinders

Monday’s ISM Manufacturing PMI delivered a pleasant surprise, jumping to 55.6 in July from 53.3 the prior month. That marked the strongest reading since May 2022 and the seventh straight month of expansion. New orders, production, and even the employment component all improved. Fifteen of eighteen industries reported growth. The data suggested businesses continue investing, partly tied to AI-spending related capital spending and some front-loading of orders. Manufacturing has been the quieter success story of 2026, and this report reminded everyone that the factory floor still matters even in a services-heavy economy.

Jobs Report Delivers a Surprise

Friday’s employment numbers landed with a thud. Nonfarm payrolls fell by 23,000 in July against expectations for a gain of roughly 85,000. The unemployment rate slipped to 4.1 percent as people left the labor force. Prior months also saw downward revisions. Markets interpreted the softness as reducing the odds of an immediate Fed rate hike, which helped stocks hang onto weekly gains. A cooling labor market after years of tightness is not necessarily bad news for inflation hawks, but it does raise questions about the underlying strength of demand. The report served as a useful reminder that economic data rarely moves in a straight line.

Earnings and AI Spending Surge

Corporate America continues to deliver helping to push the markets to fresh record highs. Second-quarter S&P 500 earnings per FactSet are tracking roughly 47 percent year-over-year growth, the strongest pace in years, while profit margins hit a record 16.7 percent. Big Tech’s capital spending remains eye-watering—Amazon, Google, Microsoft, and Meta together poured about $165 billion into CapEx last quarter. That ongoing AI spending race is still powering both near-term results and longer-term optimism. Strong earnings provided a solid fundamental backdrop underneath the week’s geopolitical and data-driven swings.

Taken together, the week offered a classic market cocktail: lower oil, record equity prices, resilient manufacturing, a softer jobs number, and continued earnings strength. Investors who stayed focused on the bigger picture rather than every intraday headline were probably the ones sleeping best by the weekend. If your still having trouble sleeping and need help managing your portfolio, contact me. I’m happy to help.

That’s All Folks!