**U.S. Stock Market Update: August 3, 2026**
The S&P 500 Index is up 1.18% today, reaching a 2.5-week high, while the Dow Jones Industrial Average has increased by 1.08%, marking a 3.5-week high, and the Nasdaq 100 is up 1.40%, achieving a 1-week high. This upward movement is propelled by easing geopolitical tensions in the Middle East, which have significantly dropped crude oil prices by 5%, and a positive July ISM manufacturing index, which rose by 2.3 points to 55.6—higher than the expected 53.9 and the fastest growth rate in four years.
In terms of bond markets, the 10-year T-note yield has decreased by 5 basis points to 4.68%. The markets are now pricing in a 63% chance for a 25 basis point rate hike during the next Federal Open Market Committee meeting scheduled for September 15-16.
Earnings forecasts for Q2 reflect a strong outlook, with expected growth of 23%, bolstered by significant contributions from AI infrastructure sectors. So far, 86% of S&P 500 companies that have reported exceeded earnings estimates.
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