The S&P 500 posted its sixth consecutive weekly record close, while the Nasdaq and Dow also advanced modestly. Trade optimism from the U.S.–EU trade pact, robust tech and AI earnings, and a stable labor market underpinned the rally, even as volatility spiked on tariff concerns and margin leverage rose.
Weekly Index Performance
| Index | Last Close (Aug 1) | Weekly Change |
| S&P 500 | 6,238.01 | -2.36% |
| Nasdaq Composite | 20,650.13 | -2.17% |
| Dow Jones Industrial Average | 43,588.58 | -2.92% |
Key Drivers of Last Week’s Rally
Tariff Shock & Jobs Underwhelm
- President Trump announced sweeping new tariffs on 69 countries, raising the effective U.S. tariff rate from 2.3% to 18%.
- Concurrently, July job growth disappointed with only 73,000 new positions added, heightening recession fears.
Tech & Growth Pullback
- Nvidia fell 2.5% and Amazon slid 6% amid concerns over future guidance, despite strong quarterly fundamentals.
- Growth‑oriented shares bore the brunt of the sell‑off, reversing earlier gains in chip and cloud names.
Volatility & Fed Speculation
- The VIX surged to its highest level since June, closing at 20.38, as markets braced for more tariff fallout.
- Fed rate‑cut odds for September climbed to 86.5% after the weak labor data, recalibrating monetary policy expectations.
Sector Highlights
Technology & AI: Nvidia and Amazon were key drag factors.
Consumer Discretionary & Industrials: Mixed results with strength in select industrial names, while retail stocks fell.
Financials, Utilities, & Real Estate: Defensive sectors outperformed as rate‑cut expectations and tariff risks weighed on cyclicals.
Global Market Snapshot
MSCI’s global equities index sank, and the dollar dipped after weak U.S. jobs data and tariff announcements.
Emerging markets, including China, also retreated on concerns over export disruptions and geopolitical risks.
What to Watch This Week
Tariff Implementation (Aug 7): Monitor the economic impact as new duties take effect.
Fed Policy Signals: Follow commentary and minutes for clues on the next rate‑cut timing.
Earnings Pipeline: Corporate updates from Monolithic Power Systems, UPS, and additional tech names.
