Stocks Hold Near Record Highs as Earnings Roll In: Markets Wrap

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August 4, 2026 - 09:15

5 minutes

(Bloomberg) — Stocks extended gains as investors turned their focus to corporate earnings after weeks of choppy trading spurred by concerns over tech valuations and the conflict in the Middle East.Futures on the S&P 500 climbed 0.2% after a tech-led rally on Wall Street on Monday lifted the index to within striking distance of a record. Contracts on the Nasdaq 100 were up 0.6%. Palantir Technologies Inc. surged 14% in extended trading after raising its forecasts, with SpaceX and Advanced Micro Devices Inc. due to report today.The rebound in US technology shares followed a volatile month as investors questioned whether billions of dollars of spending on artificial intelligence will translate into stronger growth and profits. But the positive earnings season so far has eased some of those concerns. S&P 500 companies are beating expectations at a rate of 86%, the highest in five years, while year-on-year growth in earnings per share is running at 29%, according to Bloomberg Intelligence.“The combination of resilient economic growth, strong corporate earnigns and AI-driven investment continues to provide a favorable backdrop for equities,” said Jeff Buchbinder, chief equity strategist at LPL Financial. “While investors are right to scrutinize elevated capital spending by hyperscalers and monitor developments in the Middle East, we believe these risks will be offset by the powerful earnings tailwind.”The Stoxx Europe 600 rose 0.6%, set for a record-high close. Bayer AG jumped more than 4% after an earnings beat. Zalando SE plunged 13% after cutting full-year guidance, while Deutsche Lufthansa AG fell after warning of uncertainty due to volatile jet fuel prices.In currency markets, the yen gave back some of its recent advance that was triggered by US and Japanese intervention, slipping 0.3% to 157.70 per dollar.Treasuries were steady as oil rebounded from the previous session, when optimism that geopolitical tensions in the Middle East was easing sent the commodity lower. Brent crude climbed 1.2% to near $85 per barrel, after gaining 4.7% on Monday.Ar potential challenge for markets comes later Tuesday, when SpaceX reports its first earnings as a public company.It also sets the stage for one of the largest share unlocks in capital markets history, with as much as $116 billion of stock becoming eligible for sale for the first time next month. SpaceX stock is now more than 15% lower than its closing price on June 11.“Perhaps the bigger issue for SpaceX remains the looming share overhang,” said Chris Weston, head of research at Pepperstone Group Ltd. “There is a sense that many investors remain interested in owning the stock but are waiting for the selling pressure associated with these lock-up expiries to begin fading.”Corporate News:HSBC Holdings Plc announced a fresh stock buyback and raised its cost-cutting target as it reported second-quarter earnings that beat estimates despite China’s crackdown on cross-border wealth flows. Toyota Motor Corp. unveiled a ¥1 trillion ($6.3 billion) buyback and lifted its profit outlook as resilient hybrid demand and a weak yen helped make up for rising costs, tariffs and supply disruptions. Saudi Aramco reported a 33% increase in second-quarter profit as it benefited from a war-driven surge in oil prices, while keeping exports flowing through a pipeline that bypasses the Strait of Hormuz. Continental AG’s operating profitability improved in the second quarter after the German parts maker sold more of its premium tires. Deutsche Lufthansa AG warned of heightened uncertainty for its full-year outlook as volatility in jet fuel prices and shortened booking cycles complicate efforts to boost profit. Bayer AG posted better-than-expected profit in the second quarter, helped by a strong performance in its crop science business. India is aiming to raise as much as $3.3 billion by selling a small stake in Life Insurance Corp. Some of the main moves in markets:StocksThe Stoxx Europe 600 rose 0.6% as of 8:10 a.m. London time S&P 500 futures rose 0.2% Nasdaq 100 futures rose 0.6% Futures on the Dow Jones Industrial Average rose 0.2% The MSCI Asia Pacific Index fell 0.2% The MSCI Emerging Markets Index fell 0.1% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was unchanged at $1.1509 The Japanese yen fell 0.3% to 157.71 per dollar The offshore yuan was little changed at 6.7527 per dollar The British pound was little changed at $1.3431 CryptocurrenciesBitcoin fell 0.3% to $63,556.12 Ether fell 0.7% to $1,854.34 BondsThe yield on 10-year Treasuries was little changed at 4.68% Germany’s 10-year yield declined one basis point to 3.14% Britain’s 10-year yield was little changed at 4.95% CommoditiesBrent crude rose 0.9% to $84.56 a barrel Spot gold rose 0.2% to $4,064.38 an ounce This story was produced with the assistance of Bloomberg Automation.–With assistance from Elaine Lai, Abhishek Vishnoi and Michael Msika.©2026 Bloomberg L.P.