Stocks rally 3.6% on strongest earnings since 2021, but the Fed signals a September hike is still live

The S&P 500 rose 3.6% and the Nasdaq 100 about 5% as the AI trade roared back, yet July payrolls turned negative at -23,000 and Chair Warsh signalled willingness to raise rates in September if inflation runs hot.

Deepakshi

Kristal Research & Marketing team

7 Aug2 min

Key takeaways — AI summary

The S&P 500 closed the week at 7,757.64 (+3.58%) and the Nasdaq 100 at 29,834.75 (+5.04%), with the Nasdaq up 3.3% on Tuesday alone as Palantir's blowout print and strong Caterpillar earnings reignited the AI trade.
WTI crude fell nearly 9% to about $77.08 after President Trump cancelled planned strikes on Iran, while gold surged about 7% to $4,401.29 (its best week since January) and silver jumped over 10%.
July nonfarm payrolls came in at -23,000 versus +85,000 expected, ADP added just 44,000, and the three-month average slipped to +20,000 jobs, though unemployment unexpectedly edged down to 4.1%.
The document reports Fed Chair Kevin Warsh remains willing to raise rates in September if inflation surprises higher, pushing front-end yields and hike odds higher; the 10-year yield ended at 4.657%.
With 88% of the S&P 500 reported, Q2 revenue growth is tracking to roughly 15% year-on-year — the fastest since Q4 2021 — with all eleven sectors growing sales for the first time this cycle.

Generated by Kristal AI · reviewed by the research desk

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