Stocks Rally After Fed Hold – Weekly Update
August 3, 2026 | By Steven DiGregorio
Stocks pushed through another volatile summer week as diverging Q2 corporate reports and the Fed’s rate decision whipsawed prices.
The Standard & Poor’s 500 Index rose 1.05 percent, while the Nasdaq Composite Index advanced 1.59 percent. The Dow Jones Industrial Average added 1.04 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, increased 2.13 percent.1,2
Tech Stocks Steal Spotlight
Chip stocks were under pressure at the start of the week as investors fretted over fresh competition from China and higher-than-expected AI capital expenditures. But the Dow pushed higher as oil prices slid and investors rotated out of technology.3,4
On Wednesday, the Federal Reserve said it was holding interest rates steady, a move that was initially well received by markets. But as the day progressed, selling picked up as investors expressed concern that the Fed was not doing enough to battle inflation.5
Markets rebounded on Thursday with semiconductors and big-tech names leading the way. The Nasdaq rose nearly 3 percent, ending its 6-day losing streak.6,7
Momentum from Thursday’s rally extended into Friday. Markets rose at open despite diverging Q2 earnings results from two influential tech companies. While it wasn’t a straight line, all three major averages built on gains throughout the day to end the week higher.8
Source: YCharts.com, August 1, 2026. Weekly performance is measured from Monday, July 27 to Friday, July 31. TR = total return for the index, which includes any dividends as well as any other cash distributions during the period. Treasury note yield is expressed in basis points.
Fed Watch
The Federal Open Market Committee voted 9-3 to hold rates steady: 9 voted to hold, while 3 voted to increase. The decision to hold rates was initially met with enthusiasm, but traders became increasingly unsettled as the day progressed.
At the Fed’s press conference, Chair Kevin Warsh explained the decision, but some were concerned that the Fed was underestimating inflation. The next scheduled two-day Fed meeting ends on September 16, so traders will have plenty of economic reports to assess overall consumer prices.9
This Week: Key Economic Data
Monday: Purchasing Managers Index (PMI)—Manufacturing. Construction Spending.
Tuesday: Trade. Job Openings & Labor Turnover. Factory Orders.
Wednesday: ADP Employment Report. PMI–Services.
Thursday: Productivity & Costs. Weekly Jobless Claims. Wholesale Trade.
Friday: U.S. Employment Report. Consumer Credit.
Source: Investor’s Business Daily – Econoday economic calendar: July 31, 2026.
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to provide accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts are also subject to revision.
This Week: Companies Reporting Earnings
Monday: Palantir Technologies Inc. (PLTR), Vertex Pharmaceuticals Incorporated (VRTX), Marriott International, Inc. (MAR), The Williams Companies, Inc. (WMB)
Tuesday: Space Exploration Technologies Corp. (SPCX), Advanced Micro Devices, Inc. (AMD), Caterpillar Inc. (CAT), Merck & Co., Inc. (MRK), Arista Networks, Inc. (ANET), Amgen Inc. (AMGN), The McDonald’s Corporation (MCD), Gilead Sciences, Inc. (GILD), Pfizer Inc. (PFE), Booking Holdings Inc. (BKNG), Duke Energy Corporation (DUK), Spotify Technology (SPOT)
Wednesday: Eli Lilly and Company (LLY), Sandisk Corporation (SNDK), Western Digital Corporation (WDC), The Walt Disney Company (DIS), Shopify Inc. (SHOP), CVS Health Corporation (CVS), Uber Technologies, Inc. (UBER), AppLovin Corporation (APP), McKesson Corporation (MCK)
Thursday: ConocoPhillips (COP), Parker-Hannifin Corporation (PH), Howmet Aerospace Inc. (HWM), Constellation Energy Corporation (CEG)
Friday: Berkshire Hathaway Inc. (BRK.A / BRK.B)
Source: Zacks, July 31, 2026. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your goals, time horizon, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule their earnings reports without notice.
Footnotes And Sources
1. WSJ.com, July 31, 2026
2. Investing.com, July 31, 2026
3. CNBC.com, July 27, 2026
4. CNBC.com, July 28, 2026
5. WSJ.com, July 29, 2026
6. CNBC.com, July 30, 2026
7. WSJ.com, July 30, 2026
8. CNBC.com, July 31, 2026
9. WSJ.com, July 29,2026
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Tags: Chips, DJIA, FOMC, NASDAQ, S&P 500
