Stock Market Today, Aug. 7, 2026: S&P 500 Closes at Record High

The S&P 500 closed at a record high on Friday, Aug. 7, 2026, its second record close of the week. A weaker-than-expected July jobs report lowered expectations that the Federal Reserve would raise interest rates soon. Technology stocks led the advance, and the Nasdaq Composite outpaced the other major indexes. The Dow Jones Industrial Average posted a smaller gain. All three indexes finished with their best weekly performance since mid-April. The Nasdaq rose 5.2% for the week, the S&P 500 gained 3.6% and the Dow added 3%.

The payroll report showed U.S. employers cut 23,000 jobs in July. Economists had expected a gain of 83,000. After the release, futures traders cut the implied chance of a Fed rate hike at the September meeting to roughly 40% from 55% a day earlier, according to CME Group’s FedWatch tool. Semiconductor stocks, optics and photonics suppliers to AI data centers, and several companies that reported strong quarterly results posted the largest gains. Airbnb rose 17%, the biggest advance in the S&P 500.

July Payrolls Fell 23,000

The July employment report set the direction of Friday’s session. Payrolls declined by 23,000, missing the consensus forecast of an 83,000 gain by more than 100,000 jobs. The report also revised June payrolls lower, so the hiring trend over the previous two months was weaker than first reported.

The unemployment rate fell to 4.1% in the same report. Labor force participation shrank in July, which accounts for the lower jobless rate in a month of payroll losses.

The data arrived as the Fed under Chair Kevin Warsh has kept its focus on inflation. Warsh has repeatedly said since becoming Fed chair in May that the central bank’s main priority is fighting inflation. Markets had read those comments as a signal that rates might need to rise. A labor market that lost jobs in July, with June also revised lower, gives the Fed less reason to tighten, because higher rates would add pressure to an economy already showing strain.

September Hike Odds Dropped to About 40%

Futures markets repriced quickly after the release. CME Group’s FedWatch tool showed traders pricing roughly a 40% chance that the Fed would raise its benchmark rate at its mid-September meeting. A day earlier, the implied probability was 55%.

The 15-point drop in a single session reversed the balance of rate expectations. Before Friday, a September hike was the more likely outcome in futures pricing. After the jobs report, it was the less likely one.

The next major data point for rate expectations is the consumer price index for July, scheduled for release on Wednesday. With Warsh’s Fed focused on inflation, the CPI report is the next scheduled test for the lower hike odds priced in on Friday. For historical context on price growth, see U.S. inflation rate by year.

Treasury Yields Fell

The 10-year Treasury yield declined on Friday. The intraday move was larger than the change at the close. Immediately after the jobs report, the yield dropped as low as 4.60% intraday as traders reassessed the chances of a rate hike. It then recovered part of that decline later in the session and finished lower on the day.

Technology shares were the strongest part of the stock market as yields fell. The Nasdaq Composite again outperformed the S&P 500 and the Dow, extending its lead for the week.

Indexes Post Best Week Since April

Each of the three major indexes recorded its largest weekly advance since the week of April 13. The Nasdaq Composite rose 5.2% for the week, the S&P 500 gained 3.6% and the Dow added 3%.

The week was already strong before the jobs report. Entering Friday, the S&P 500 was up 2.9% for the week and the Dow was up 2.7%. Both had set all-time highs earlier in the week. The Nasdaq was up 3.8% at that point. That gain alone would have been its best week since the week of May 4. Friday’s rally pushed all three weekly totals higher and moved the Nasdaq’s comparison back to April.

The Nasdaq has been volatile in recent months amid concerns about a possible AI bubble. This week’s run of gains marked a change from that pattern. Two developments supported stocks through the week before Friday’s data. Corporate earnings reports were strong, and hopes grew that the U.S. and Iran would make progress on a peace deal. Earlier sessions this week included Aug. 4, when the S&P 500 and Dow closed at records, and Aug. 5, when the Dow extended its rally to a record.

On a year-to-date basis, the Nasdaq is up 15% since the start of 2026, the S&P 500 is up 13% and the Dow has gained 12%. Friday’s close was enough to clear the S&P 500’s prior closing high, set earlier in the week. The index’s longer price history is on the S&P 500 index page.

Chip Stocks and Megacaps Led Tech Higher

Most megacap technology stocks rose on Friday. Tesla (TSLA) led the group with a gain of about 3%. Nvidia (NVDA) added more than 2%, and its AI chip rival Broadcom (AVGO) rose nearly 2%. The Roundhill Magnificent 7 ETF (MAGS) also moved higher.

Semiconductors were among the strongest groups in the market. The PHLX Semiconductor Index (SOX) rose 2.6%. Intel (INTC), Marvell Technology (MRVL) and other chipmakers posted solid gains. The chip rally helped the Nasdaq Composite outperform the S&P 500 and finish well ahead of the Dow.

Meta Platforms, another large technology company, was an exception. Its shares were little changed on a day when the company was ordered to pay $942 million in a New Mexico lawsuit, covered below.

Optics Stocks Surge

Photonics and optics companies had one of the strongest days of any group. These stocks are often described as “pick and shovel” AI plays because they sell components and infrastructure that data centers need.

Coherent (COHR), a maker of lasers and optical transceivers, jumped 13%. Lumentum (LITE) gained about 6%, and fiber optic cable maker Corning (GLW) rose 5%. All three were among the top gainers in the S&P 500.

Applied Optoelectronics (AAOI) rose 9% after reporting second-quarter sales and profits that beat expectations. Its results came ahead of next week’s reports from Lumentum and Coherent. Analysts are projecting higher sales and profits for both of those companies, driven by AI-related demand.

FCC Draft Rule on Chinese Transceivers

The optics group was already up for the week before Friday. On Tuesday, Reuters reported that the Federal Communications Commission was drafting a rule that could ban imports of new optical transceivers made in China from being sold and installed in U.S. data centers.

According to Reuters, the ban could take effect by the end of the year. Its stated purpose is to guard against data theft, malware and service disruptions at U.S. data centers. The FCC did not comment.

Coherent, Applied Optoelectronics, Lumentum and Corning all have significant roles in the transceiver supply chain. A restriction on Chinese-made transceivers would reduce competition for U.S. suppliers in the domestic data center market. The group rose on the report. Any final FCC action on the rule could move these stocks again.

Lumentum Reports Tuesday

Lumentum, one of the best-performing stocks in the S&P 500 this year, reports quarterly results after the closing bell on Tuesday. Options prices imply that traders expect a move of about 13% in either direction by the end of next week.

The shares are up roughly 140% since the start of the year, though they remain below their May highs. The gains followed a series of positive developments, including an investment from Nvidia and bullish comments from analysts and executives about AI-driven demand. The company makes optical components used in data centers, and its sales have grown as large technology companies spend heavily to expand AI capacity.

Wall Street coverage is mostly positive. Of the nine analysts tracked by Visible Alpha, seven rate the stock a “buy” and two have neutral ratings. Their mean price target is just under $1,110. The stock traded around $900 late in Friday’s session, which put the average target roughly 23% above that level.

Coherent is also scheduled to report next week. Analysts expect it to post higher sales and profits on AI-related demand.

SpaceX Extends Rebound

SpaceX (SPCX) shares jumped 16% on Friday, after a 6% gain on Thursday. The two-day rally capped a turbulent week for the newly public company.

SpaceX reported its first quarterly results as a public company on Tuesday night. Shares had risen ahead of the report. They then fell after management outlined AI spending plans that some investors considered more aggressive than expected. The stock dropped to a record low this week following the report.

The first of several lock-up agreements expired on Thursday, freeing 900 million shares for trading. The stock rose on the day the first lock-up ended and again on Friday, despite earlier concerns about the additional supply of shares.

SpaceX went public in mid-June at $135 per share. The stock has not closed above its IPO price since mid-July. During Friday’s session, shares rose to an intraday high that brought them close to that level. The two-day gain moved the stock much closer to its offering price than it had been earlier in the week.

At midday prices, the shares were on track for a weekly gain of nearly 20%. That marked a turnaround from the stock’s position after Tuesday’s report. Additional lock-ups are still to expire, which could bring more shares to market in the coming months.

Earnings Movers: Airbnb, Atlassian and Microchip

Several companies made large moves after reporting quarterly results.

Airbnb (ABNB) jumped 17%, the biggest gain in the S&P 500. The shares reached their highest level since early 2022.

Software maker Atlassian (TEAM) soared 35% after its earnings beat Wall Street estimates. That was one of the largest moves of the day among companies reporting results.

Microchip Technology (MCHP) climbed 14% after strong quarterly results. Its gain added to the advance in semiconductor stocks that lifted the PHLX Semiconductor Index 2.6%.

Cloudflare Raises Full-Year Outlook

Cloudflare (NET), a networking and web security provider, closed up about 6% after reaching a record during the session. The shares hit $325 early on Friday, then gave back part of the gain and traded near $304 later in the day.

For the second quarter, Cloudflare reported adjusted earnings of 29 cents per share. Revenue grew 36% from a year earlier to $696.1 million, above estimates compiled by Visible Alpha.

The company’s third-quarter forecast also beat expectations. Cloudflare guided to revenue of $736 million to $737 million and adjusted EPS of 34 cents. It raised its full-year guidance to revenue of $2.864 billion to $2.87 billion and adjusted EPS of $1.25 to $1.26.

CEO Matthew Prince said the company had record growth in total paying customers, large customers and developers as AI adoption expands. He described the web as moving toward AI answer engines and agent-driven commerce, with more traffic flowing between machines. He positioned Cloudflare as the provider of infrastructure, controls, developer tools and payment systems for that shift.

JPMorgan analysts raised their price target on Cloudflare to $350 from $145, more than doubling it. They wrote that the results and outlook exceeded expectations that were already high. The analysts said the report reinforced Cloudflare’s position as a beneficiary of broadening AI demand.

Doximity Jumps on AI Comments

Doximity (DOCS), a telehealth and digital platform company for medical professionals, rose nearly 60% to around $33 during the session. The stock had reached $40 in the first minutes of trading. The company reported results for its fiscal first quarter, which ended June 30.

Quarterly revenue grew 7% from a year earlier, while net income and adjusted EBITDA both declined. The stock rose on management’s comments about artificial intelligence on the earnings call.

CEO Jeff Tangney said the company was seeing record AI usage. He also said Doximity placed first in what he called the first large-scale independent head-to-head trial of clinical AI vendors. CFO Matthew Sonefelt described a “nascent but growing” AI commercial pipeline, and the company raised guidance.

Management said its AI tools are drawing more usage and client engagement, pointing to growth potential that has not yet shown up in reported revenue.

Even after Friday’s surge, the stock remained down for the year. Doximity closed Thursday just under $21, after ending 2025 above $44.

Meta Ordered to Pay $942 Million in New Mexico Case

Meta Platforms (META), the owner of Instagram and Facebook, was ordered to pay a total of $942 million in a lawsuit brought by New Mexico. The amount consists of $375 million in civil penalties and a $567 million fund to help people harmed by social media.

New Mexico’s attorney general sued Meta, alleging the company failed to adequately protect children in the state from a range of risks associated with its apps. A jury sided with the state in March. The case is one of many pending against Meta and other social media companies over alleged failures to protect children.

Meta shares were little changed on Friday. The stock has lost about 10% since the start of the year, lagging other large technology companies amid concerns about Meta’s heavy spending on AI. Shares fell 8% last week on the day after Meta reported weak earnings and a disappointing outlook.

Berkshire Hathaway Reports Saturday

Berkshire Hathaway (BRK.A, BRK.B) is scheduled to release earnings on Saturday morning. The report covers Greg Abel’s second quarter as CEO following Warren Buffett’s departure from the role at the end of 2025.

The quarter included Berkshire’s $6.8 billion deal to acquire homebuilder Taylor Morrison, a large bet on the U.S. housing market. Buffett praised the acquisition publicly. He told CNBC that Abel completed it faster and more smoothly than he could have, and that Buffett never spoke to Taylor Morrison’s CEO.

Abel has also continued repurchasing Berkshire shares, in line with Buffett’s long-standing approach to buybacks. Abel said earlier this year that he plans to keep buying back stock as long as Berkshire’s intrinsic value exceeds its market value.

Berkshire shares fell about 1% on Friday afternoon to around $520. They remain below highs near $540 reached in May 2025, just before Buffett announced he would step down at the end of that year. The stock dropped after Berkshire’s previous earnings report in May. It has since gained more than 10% since the start of June and has slightly outperformed the broader market since that report.

Oil, Gold and Bitcoin

West Texas Intermediate crude futures slipped to about $77 a barrel. Traders were waiting for news on a possible U.S.-Iran agreement to reopen the Strait of Hormuz to shipping.

Oil had risen on the two previous days amid uncertainty over whether a deal would be reached. Prices remain well below the highs near $94 set two weeks ago, when tensions between the two countries were higher. Hopes for progress toward a U.S.-Iran peace deal also supported stocks earlier in the week.

Gold futures rose more than 2% to around $4,400 an ounce, close to their highest level in two months. The gain came as Treasury yields and rate-hike expectations fell after the jobs report.

Bitcoin edged up to around $65,000.

What to Watch Next Week

Berkshire Hathaway reports earnings Saturday morning, before markets reopen. The results will be the second quarterly report under Abel and the first to include the Taylor Morrison acquisition.

Lumentum reports after the close on Tuesday, with options pricing implying a move of about 13% in either direction by the end of the week. Coherent also reports during the week. Analysts expect higher sales and profits from both companies on AI-related demand.

The July consumer price index is scheduled for Wednesday. It will be the first major inflation reading since Friday’s jobs report cut the implied odds of a September rate hike to about 40%. The Fed under Warsh has made inflation its main focus.

Other items on the calendar include developments in U.S.-Iran talks over the Strait of Hormuz, which moved oil prices during the week, and further SpaceX lock-up expirations. Any final FCC action on Chinese-made optical transceivers could also affect Coherent, Lumentum, Corning and Applied Optoelectronics. AI-related stocks have reversed quickly in recent weeks, including during the July 16 session, when the Nasdaq fell on AI spending concerns.