Monday, August 3, 2026

Wall Street surged to kick off August, fueled by receding geopolitical tensions and robust Q2 earnings momentum that saw nearly 85 percent of S&P 500 firms beating estimates. The tech-heavy Nasdaq led the charge with a 2.13% jump to 25,913.896, while the Dow Jones Industrial Average hit a record high, climbing 1.32% to 53,178.41. The S&P 500 added 1.48% to close at 7,600.5, nearing its own all-time peak as falling energy prices calmed inflation fears and lifted risk appetite, pushing the VIX down 0.81% to 15.86.

Sectors in focus:

• Aerospace & Defense: Guided Missiles & Space Vehicles & Parts led all industries with a 6.47% surge. The group rallied on a major Pentagon deal for Northrop Grumman to provide Patriot rocket motors, alongside a Raytheon SPY-6 radar milestone.
• Airlines & Industrials: Scheduled Air Transportation climbed 5.88%, directly benefiting from a 5.57% plunge in WTI Crude (settling at 79.95). Oil prices dropped sharply after President Trump called off planned military strikes on Iran in favor of diplomatic talks to reopen the Strait of Hormuz.
• Energy & Pipelines: Easing supply fears naturally pressured the energy complex. Drilling Oil & Gas Wells (-2.96%), Petroleum Refining (-2.41%), and Natural Gas Transmission (-1.37%) dominated today's lagging industries.

On the radar:

• Corporate Earnings: Palantir (PLTR) and Vertex (VRTX) report after today's close. Attention then shifts to Wednesday, August 5, for highly anticipated numbers from SpaceX (SPCX) and Disney (DIS).
• Macro Data: Tuesday's JOLTS Job Openings report will offer a fresh look at labor demand ahead of Friday's critical July Non-farm Payrolls (August 7). Looking slightly further ahead, the July CPI print on August 12 will test the market's cooled inflation narrative.