S&P 500 and Nasdaq Head for Back-to-Back Weekly Gains as July Jobs Report Looms

Major Indexes On Track for Second Consecutive Weekly Win Ahead of Key Employment Data

U.S. equity markets were positioned for a second straight week of gains as of Friday, August 7, 2026, with investors keeping a close eye on the upcoming July nonfarm payrolls report scheduled for release at 8:30 a.m. ET. Stock futures climbed in early morning trading, with the Nasdaq 100 leading the charge with a 0.5% advance, while S&P 500 futures added 0.2% and Dow Jones Industrial Average futures moved 41 points, or 0.1%, higher.

Thursday's Pullback Fails to Disrupt Weekly Momentum

Despite a notable setback on Thursday — when the Dow retreated more than 460 points, or 0.9%, snapping a five-session winning streak, and the S&P 500 dipped 0.2% — the broader weekly trend remained intact for all three major indexes.

The Nasdaq stood out as the week's top performer, on pace for its strongest weekly gain since May. Much of that strength came from the semiconductor sector, with the iShares Semiconductor ETF surging more than 5% over the five-day stretch, reflecting renewed investor enthusiasm for chip-related stocks.

All Eyes on the July Jobs Report

The central focus heading into Friday's session was the July employment report. Economists surveyed by The Wall Street Journal projected nonfarm payrolls grew by 83,000 last month — a step up from June's 57,000 figure but still slightly below the 92,000 monthly average recorded during the first half of 2026. The unemployment rate was forecast to remain steady at 4.2%.

The data carries added significance given the Federal Reserve's ongoing rate deliberations. According to CME Group figures, fed-funds futures markets were almost evenly split on whether the Fed would implement a quarter-point rate hike at its September meeting, with the probability sitting at approximately 55%. A stronger-than-anticipated payrolls print could tip sentiment further toward tightening, while a softer reading might ease those expectations.

Oil Markets Slip Amid Geopolitical Monitoring

Energy markets moved lower in early trading. West Texas Intermediate crude for September delivery fell 0.6% to $76.85 per barrel, while Brent crude, the international benchmark, slid 0.7% to around $81.90. Market participants continued to track diplomatic discussions between Iran and Oman concerning vessel traffic management through the Strait of Hormuz, a development that had kept some downward pressure on oil prices throughout the week.

Airbnb and Cloudflare Shine in Premarket Trading

On the corporate earnings front, two names captured significant attention in premarket activity. Airbnb shares jumped 7% after the short-term rental giant delivered results that exceeded Wall Street's expectations on both the revenue and earnings fronts. Meanwhile, cloud cybersecurity firm Cloudflare surged 16% after raising its guidance for both the full fiscal year and the current quarter — a signal that analysts noted reflects growing enterprise demand for digital security infrastructure.

Global Markets Post Mixed but Mostly Positive Results

Overseas, European equities edged higher in Friday morning trading. Germany's DAX climbed 0.48%, France's CAC 40 gained 0.26%, and the U.K.'s FTSE 100 added 0.17%, leaving the pan-European Stoxx 600 index up 0.24% on the session.

Across Asia, mainland China's CSI 300 finished 0.93% higher, Japan's Nikkei 225 posted a modest 0.12% gain, while South Korea's Kospi slipped 0.60%.

What to Watch Going Forward

Fundstrat Global Advisors' head of research Tom Lee told CNBC on Thursday that he anticipates a rally could drive the S&P 500 into the 7,900-to-8,000 range before the end of August — a projection that will likely hinge in part on how the labor market data develops and what signals the Federal Reserve sends in the weeks ahead.

The July jobs report represents one of the final major data points before the Fed's September policy meeting, making Friday's release a critical input for traders recalibrating their rate expectations and positioning for the months ahead.