Market Review: August 07, 2026

Closing Recap

Friday, August 07, 2026

The S&P 500 closed at a new record high after U.S. stocks jumped on easing Fed rate hike fears following an unexpected decline in monthly jobs in July and lowered revisions from prior months in what came as a big surprise for Wall Street. The reaction was swift as Treasury prices jumped (sending yields lower), along with a decline in the US dollar and a resurgence of precious metals prices as gold and silver both jumped on the day (and week). U.S. stock markets rallied initially with big gains in tech (helped by a bounce in software stocks on better earnings TEAM, TWLO), as well as defensive/dividend paying sectors such as utilities and REITs which could benefit from lower bond yields. The jobs report just cleared the path for rate cuts potentially as well, especially if future jobs data shows weakness. Attention will now turn to key inflation data next week with the consumer prices (CPI) and producer prices (PPI) readings. The economy lost 23,000 jobs in July against expectations of a 80,000 gain, wages fell and unemployment fell as people left the workforce. Markets had September rate hike odds above 57% going into today. Three Fed officials voted to raise rates this week. That case is now much harder to make. For the week, the S&P 500 climbed 3.6%, the Dow climbed 3.0% and the Nasdaq climbed 5.2%.

Impact of the lower jobs data report: the dollar index (DXY) falls -0.37% to 99.56 as the Euro rises to 7-week high of $1.156; Treasury yields slipped across the board as rate hike chances tumble given the weaker jobs reading; precious metals back on the rise with gold, silver, platinum all surging on falling dollar/yields.  Shares of sectors that benefit from lower interest rates such as homebuilders, mortgage related companies, higher dividend paying sectors (utilities, REITs, telco) were among early market leaders on the weak jobs reading lowering chances of rate hikes by the Fed in coming meetings. Also seeing early strength in Consumer Discretionary (XLY) +1.5% along with technology (XLK) as software stocks rebound nicely on earnings, while materials get a boost (XLB) led by mining stocks on lower rate hike expectations (lifting gold and silver prices/miners). Energy (XLE) the early leader to the downside as oil prices dip and modest declines in Financials (XLF).

Software sector was strong on heels of several upbeat earnings reports overnight/this week. Companies including TEAM, FROG, TWLO surging after results/guidance last night with each having an explanation for AI helping rather than hurting its business. Earlier in the week good results from PLTR helped tech as well as NOW recently (with a few hiccups mid-week from HUBS, FIG). Shares of DDOG slumped yesterday despite beat and raise quarter noting shares have outperformed to record highs into print. The iShares Expanded Tech-Software Sector ETF is up 10% since the start of July amid a rotation from the PHLX Semiconductor Index’s which is down -15% drop same period.

• NY Fed: July five-year ahead expected inflation unchanged at 3% while the three-year ahead expected inflation was unchanged at 3.3%. July one year ahead expected inflation 3.6% versus June’s 3.7%; survey said July current and expected personal finances view improved; July labor market expectations were mixed.

• The U.S. dollar slid to 3 month lows after a surprising/disappointing jobs report sharply reduced expectations of a Federal Reserve rate hike next month. Investors are now reassessing the outlook for U.S. monetary policy, sending the yen higher and broadening pressure on the greenback. The euro hit 7-week highs and the yen rebounded after data showed U.S. employment unexpectedly declined in July, raising concerns about the economy (U.S. economy lost -23,000 jobs in July, vs, ests of an increase of 80,000 jobs).

• Restaurant sector: WEN Q2 revenue, adj EPS and EBITDA beat expectations but global systemwide sales fell 6.5%, driven by lower U.S. same-restaurant sales and fewer restaurants and the company withdrew 2026 outlook and cut dividend to fund turnaround plan under new leadership; TXRH posted solid results, with comparable sales growth of +6.2% balanced by both traffic and check growth and lowered its outlook for commodity inflation for 2026 (to ~+5%, from +6-7% previously). SG shares fell as latest victim of cyclospora fears, removes jalapeños over second outbreak.
• Retailer sector: UAA forecast a steeper annual decline in revenue, struggling with weak consumer spending saying now expects full-year revenue to decline by mid-single-digit percentage, compared with its prior target of a slight decline. GAP was downgraded from Overweight to Equal Weight at Wells Fargo saying uncertainty at ON grows – checks show assortment challenges, not enough value in offering and a history against the idea of a quick fix. FIGS jumped as posted better-than-expected Q2 (June) results and updated favorably its guidance for 2026; Q2 revenue expanded 29% (vs. Street +22% and guidance for low-20% range), marking the third consecutive quarter of 28%+ sales growth
• Homebuilders: DFH said it would acquire U.S. homebuilder BZH in an all-cash deal valued at about $2.2 billion, including debt, as Beazer shareholders will receive $33.50 in cash for each share they own. It represents a premium of 0.12% from Beazer’s last close.

• Food Delivery/Ride Hailing: CART shares jumped after guides Q3 gross transaction value (GTV), a key metric that shows the value of products sold based on prices shown on Instacart, to be $10.30B-$10.55B, above consensus of $10.21B and core profit in the range of $320M-$340M vs. est. $318.8M. LYFT delivered a strong Q2 with accelerating bookings growth and record active riders, supported by strength across rideshare, bikes, and international markets
• Casinos & Gaming: DKNG Q2 pressure from customer-friendly sports outcomes and accelerated customer acquisition around Predictions and the World Cup; revenue missed estimate by 0.6%, while AEBITDA beat its estimate by 16.9%, making the result better than it expected.; DKNG maintained FY26 guidance without increasing its Predictions investment plan, as Predictions annualized volume rose from $2.3B to $11.0B q/q.

• In Utility/Alt Energy: OKLO posted a widened Q2 net loss of $48.5M vs. a loss of -$24.7M amid higher R&D costs and expenses related to expanding its engineering teams and regulatory efforts while revs rose to $1.2M from zero prior; ED reported Q2 adjusted EPS of $0.83, above consensus estimate, driven by rate base growth at CECONY and reaffirmed 2026 EPS guidance of $6.00-$6.20 and maintained its ~$38B capital plan supporting an 8.8% rate base CAGR; HASI delivered a strong 2Q, with results exceeding consensus expectations and highlighting the continued strength of its investment platform; VST posted a decline in Q2 revs $4.01B vs. est. $5.56B and profit  as unrealized losses on commodity hedges outweighed strong growth; Q2 interest expenses and related charges rose 3% y/y to $312M, while operating costs increased 16.4% to $853M while Q2 net income of $305M, down from $327M y/y.

• FinTech sector: SEZL shares plunged despite beating Q2 expectations and raising its outlook, as investors focused on rising operating expenses. Adjusted EPS of $1.13 topped the $1.02 consensus, while revenue rose 52% Y/Y to $149.7M, beating estimates by $14.6M. GMV jumped 38% to $1.3B, while active subscribers surged 76% to 854K. non-transaction-related operating expenses rose to 29% of revenue from 25.3% in Q1., while transaction-related costs increased to 36.5% from 26%, weighing on investor sentiment. DAVE shares fell, adding to prior day -15% decline on earnings as Barron’s noted the Dave story is a cautionary tale for investors, especially with a new wave of SPAC offerings on the horizon
• Crypto sector seeing broad gains on the day as Bitcoin rebounds back above $65,000 and Ethereum around $1,925 as the sector benefit from the weaker jobs data/less chance of rate hikes going forward by the Fed; shares of COIN, MSTR, HOOD, BMNR, CRCL among notable upside movers.

• REPL said the FDA granted accelerated approval to Replimune’s drug Tudriqev for advanced melanoma in patients whose tumors grew despite prior treatment. Wedbush said stock’s weakness is likely tied to the FDA-approved label citing a 24% objective response rate, ORR, below the 33% figure highlighted previously.
• RGNX downgraded to Equal Weight from Overweight at Barclays as sees potential upside for the company’s wholly owned RGX-202 for Duchenne and ABBV-RGX-314 for wet age-related macular degeneration but says this is balanced by unknowns around the regulatory environment and competitive landscape.
• Healthcare Technology: DOCS shares surged after reported a solid beat, FQ2 revenue guidance in line with consensus (but at lower margins due to Ai investments), and FY guidance that was raised, but adj. EBITDA guidance cut also due to Ai spend; sees FY27 revenue $671M-$681M, above consensus $670.34M.
• Healthcare Services & Facilities: NTRA shares rose on results as 2Q revenue of $753M crushed consensus of $661M as gross Margin was 61.8% (ex-true up) and EPS was ($0.47) compared consensus of ($0.55); raised FY26 revenue guidance to be in the range of $2.85B-$2.91B from previous of $2.740B-$2.820B.
• Medical Equipment: QDEL shares tumbled as 2Q results topped consensus, with revs of $631M (vs. $619M cons) and EBITDA of $129M (vs. $109M cons), the company reduced its 2026 guidance, now expected adj EBITDA of $540M to $560M (from $615M to $630M prior), reflecting demand headwinds in China. RMD shares stumbled as weak 2027 sales forecast eclipses quarterly profit beat.

• Aerospace & Defense: SPCX upgraded to Buy from Hold with a $160 price target at Argus saying despite an outlook for higher-than-expected capital expenditures, mostly for AI infrastructure, the firm is encouraged by the rapid payback on these investments given the robust growth in computing capacity. BA noted the FAA has ordered the inspections of Boeing 737 MAX jets for cracks in the body of the aircraft, among the latest quality issues to affect the plane maker. AVAV shares jumped on US $400M Army contract headlines.
• Precious metal miners rallying behind a resurgence in gold, silver, platinum and palladium prices over the last week or so. Precious metal prices booming over the last week or so as Gold is up over 8% and Platinum up 13% in seven sessions while Silver has gained more than 14% in 4 sessions. Shares of miners including AEM, B, CDE, HL, FSM, NEM, PAAS, WPM saw notable gains on Friday. In uranium, UUUU upgraded from Neutral to Buy at Roth as its valuation has returned to more normalized mining industry metrics and multiples, while the company has also strengthened its long-term outlook, in its opinion.
• Rare earth sector: MP shares rallied behind better earnings results overnight while the group was very active (CRML, ALOY, USAR, TMC, UAMY). WSJ reported the Trump administration has agreed to provide more than $2 billion in funding for companies producing batteries and critical minerals, adding to a wave of government cash aimed at weaning the U.S. off Chinese suppliers. Reuters reported late day Westwater Resources (WWR) to receive $25M export-import bank loan for Alabama graphite facility. U.S. export-import bank to loan $58M to three critical-mineral companies as Trump meets with mining executives. Global advanced metals to receive $25M export-import bank loan to boost tantalum and niobium processing and 5e advanced metals to receive $8M in export-import bank loan for California boron project per Reuters.

• TWLO another quarter of organic revenue acceleration, a beat of expectations (17% organic vs guide of 10-11%), record operating income and FCF, and a full year raise above the 2Q beat as beat broad-based, with Messaging and Voice channels, and Self-Serve and ISV all contributing to the 2Q strength. For Q3, Twilio expects revenue of $1.505B-$1.515B and adjusted EPS of $1.42-$1.47, both above Wall Street estimates
• FROG reported strong Q2 results with Cloud growth accelerating for a second straight quarter to 53.2% (from Q1’s 50%) and full-year Cloud growth outlook raised to ~42%; highlighted broad-based strength on higher annual commitments, robust usage, and Security adoption.

• IT Services & Consulting: NET raised its annual forecasts, betting that resilient AI-driven demand will sustain traffic across its network as raises FY26 EPS view to $1.25-$1.26 from $1.19-$1.20 and boosts FY26 revenue view to $2.864B-$2.87B from $2.804B-$2.813B (est. $2.81B) which followed a strong beat for Q2 results.
• Optical & photonics sector: AAOI delivered Q226 REV/EPS results inline/+$.02 vs consensus, while Q3 guidance was -2%/-$.09 below; FY26 revenue guidance was maintained; Q2 revenue (+86% Y/y) saw strong 200G/400G sales (+440% Y/y) with Amazon contributing ~25% of total revs and growing shipments of 800G. 1.6T is now poised to ramp in Q4 due to tight DSP supply against a $200MM hyperscale order.
• Quantum compute sector: IONQ shares rallied this week on earnings; RGTI 1H FY26 bookings alone now equal bookings for FY25 in total, clearly demonstrating the Re-acceleration in the company’s revenue; QBTS reported mixed Q2 FY26 rev/bookings/EBITDA results; next week are earnings from two of the industry’s newest public companies QNT and INFQ. Quantinuum shares have steadily declined since their June debut, but the company’s first earnings report could provide a catalyst. Infleqtion, which went public in February, has strong government backing and focuses on quantum computing, sensors and atomic clocks.
• Gaming Software: TTWO topped Q1 consensus estimates but only maintained its year outlook while saying its preorders for upcoming game "Grand Theft Auto 6" as "exceptional. Unity (U) ads to prior day gains after several analysts on Wall Street upgraded shares after the co crushed Q2 expectations, led by accelerating Vector growth and stronger-than-expected profitability.

• SYNA reported F4Q revenue of $308M, beating the consensus est of $305M. EPS of $1.23 was above consensus est of $1.21. Gross margin of 54.5% was above consensus est of 53.6%. Guidance was not provided given its pending acquisition by ON
• Semi Equipment: ONTO shares jumped as Q2 results well-above consensus led by stronger sequential revenue growth in advanced nodes (+50% QQ), spread across both memory and Logic/foundry; Non-GAAP EPS 20c above the high-end of prior guidance range. Q3 guide also well-ahead ($390M mid-pt vs est. $350M), led by advanced packaging/specialty, which it now models +30% QQ; raised year outlook for advanced packaging to 80%+ (from 50%+), WFE to 35%+ (from +25%), and total sales >40% (from >30%).
• Memory sector: SKHY said that its board had approved about 54.3 trillion won ($38.30B) of investments through 2031, including 35.2 trillion won for the second phase of construction of its chip Fabrication plant in Yongin and 19.1 trillion won for its M17 chip plant in Cheongju.