8th August 2026 – (New York) The S&P 500 closed at a record high on Friday as investors responded to an unexpected fall in July employment by anticipating that the Federal Reserve will likely maintain its existing monetary policy. The index increased by 0.62 per cent to finish at 7,757.64, while the Nasdaq Composite advanced 1.3 per cent to 26,690.62. The Dow Jones Industrial Average gained 151.83 points, or 0.28 per cent, settling at 54,036.93.
Over the week, all three major indices achieved their best performances since April, with the S&P 500 strengthening by 3.6 per cent, the Nasdaq rising 5.2 per cent, and the Dow advancing nearly 3 per cent. Robust gains in technology stocks have been a particular highlight, with chipmakers driving much of the momentum. The iShares Semiconductor ETF rose more than 7 per cent, buoyed by optimism in the sector.
The positive tone was underpinned by government data showing a 23,000 reduction in nonfarm payrolls for July, defying economist expectations of an 83,000 increase. The unemployment rate dropped to 4.1 per cent, though this reflected a lower labour force participation rate, now at its lowest in more than five years. A majority of futures market participants now anticipate the central bank will hold its benchmark rate steady at 3.50 to 3.75 per cent at its September meeting.
Technology companies were at the forefront of Friday’s rally. Cloudflare gained over 5 per cent after releasing a strong outlook, while Atlassian surged 35 per cent on upbeat quarterly earnings. Shares in Airbnb also surged by 17 per cent after the firm’s financial results exceeded expectations.
In other sectors, oil prices rose slightly as the market awaited the outcome of negotiations between the United States and Iran regarding reopening the Strait of Hormuz. West Texas Intermediate futures for September delivery closed 1.15 per cent higher at $78.18 per barrel, with Brent crude up 1.29 per cent to $83.55. Treasury Secretary Scott Bessent indicated an agreement could be finalised soon, which eased concerns and contributed to market stability.
Elsewhere, SpaceX shares finished the week nearly 19 per cent higher, powered by a bullish analyst rating and speculation regarding the company’s long-term prospects. Nvidia also climbed over 10 per cent across the week, with news that the company will serve as SpaceX’s exclusive AI partner providing a further boost to investor confidence.
As markets digested July’s employment report and a generally positive round of corporate earnings, traders grew increasingly confident that US monetary policy would stay steady in the near future. This perception, alongside gains in technology and energy shares, contributed to Wall Street’s record-breaking close ahead of the weekend.
