Stock Market Rebounds on Manufacturing Strength and Geopolitical Easing
Major U.S. stock indexes posted their best weekly gains since April 2026, fueled by strong manufacturing data, positive corporate earnings, and progress toward reopening the Strait of Hormuz.
Markets Rally on Multiple Fronts
Major U.S. stock indexes advanced during the week—with several notching fresh record highs—as generally favorable corporate earnings, renewed enthusiasm around artificial intelligence (AI)-related stocks, and optimism about the potential reopening of the Strait of Hormuz supported investor sentiment. The technology-heavy Nasdaq Composite led the way, posting its best week since April, followed by the S&P 500 and Russell 2000 Indexes. The Dow Jones Industrial Average lagged but still added nearly 3%.
Weekly Performance Highlights
The Nasdaq saw a gain of 5.2%, thanks to a bounce-back in chip stocks. The iShares Semiconductor ETF (SOXX) ended the week up more than 7%. The Dow, on the other hand, gained nearly 3% during the week. Semiconductor stocks led the charge as investors rotated back into technology after weakness in July.
Geopolitical Catalyst
Geopolitical developments appeared to largely support risk appetite, with negotiations over critical shipping lanes lifting market sentiment. Stocks rose after President Donald Trump called off planned strikes against Iran, sending oil prices lower, in the first trading day of the new month. This decision reduced inflation risks associated with potential energy disruptions.
Broader Index Performance
All three indexes notched their best weekly performances since April, marking a significant turnaround from the volatility that plagued markets in July. The combination of better-than-expected economic data, moderating energy concerns, and bargain hunting has restored investor confidence in equities.