U.S. stock indices closed higher on Friday, August 9, 2026, driven by strong corporate earnings and reduced fears of Federal Reserve interest rate hikes. The S&P 500 Index ($SPX) increased by +0.62%, the Dow Jones Industrial Average ($DOWI) rose by +0.28%, and the Nasdaq 100 Index ($IUXX) climbed by +1.19%. September E-mini S&P futures (ESU26) and September E-mini Nasdaq futures (NQU26) also saw gains of +0.55% and +1.17% respectively. This market uplift followed a weaker-than-expected July nonfarm payrolls report, which unexpectedly fell by -23,000, and average hourly earnings that rose less than anticipated, contributing to the belief that the Fed might not be pressured to raise interest rates soon.
Key companies saw significant gains. Atlassian surged over +36% after forecasting stronger-than-expected Q1 revenue. Cybersecurity firms also rallied, with Cloudflare up 4% after reporting better-than-expected quarterly earnings. Chipmakers benefited as Microchip Technology rallied more than +13% on projections of stronger-than-expected net gross sales for the next quarter. The 10-year T-note yield dropped -3 basis points to 4.65%, and the probability of a Fed rate hike at the next FOMC meeting decreased from 58% to 44% after the jobs report.
Geopolitical tensions, particularly involving Iran, continued to influence the oil market. While the U.S. stock market showed resilience, the price of Brent crude rose by 4.1% to $100.10, partially recovering from a 7.1% plunge earlier in the week. However, U.S. crude oil prices fell 2.8% to $93.88. Attacks by the U.S. and Israel on Iran, disrupting the Strait of Hormuz, have contributed to volatility and inflation in oil prices, although investors appear focused on potential deals to improve oil flow.
