The Major Markets had a strong rebound last week. The Nasdaq added 5.2%, the S&P 500 gained 3.6%, and the Dow rose 3%. For the Nasdaq, this return stands as the best weekly return since April and the second best weekly return in 2026.  Meanwhile, the S&P 500 and the Dow both saw fresh new all-time closing highs.

Technology led the way, with the sector gaining more than 7% as semiconductor stocks surged nearly 9%. Strong corporate earnings and renewed confidence in artificial intelligence spending helped growth stocks regain their leadership.

The rally also broadened beyond large-cap technology. Small- and mid-cap stocks posted strong gains, while materials, consumer discretionary, and industrials all moved higher.
Another positive factor was easing geopolitical tension. Crude oil prices fell more than 10% for the week as concerns about disruptions in the Middle East diminished.

Then on Friday, a surprisingly weak July BLS Employment report showed a loss in the monthly total nonfarm employment. That caused investors to reduce expectations for additional Federal Reserve rate hikes, pushing Treasury yields lower and giving another boost to growth and interest-sensitive stocks.

Looking ahead, the big focus will be inflation. This week’s Consumer Price Index report will be important in determining whether the Fed can remain on hold.