Markets News, Aug. 7, 2026: S&P 500 Closes at Record High as Stock Market Posts Best Week Since April; SpaceX Shares Soar

Major Indexes Post Biggest Weekly Gains Since April

FROM 13 hr 1 min ago

The three major stock indexes turned in their best performance in nearly four months this week.

The tech-heavy Nasdaq Composite climbed 5.2%, while the benchmark S&P 500 rose 3.6% and the Dow Jones Industrial Average added 3%. It was the biggest weekly gain for each index since the week of April 13.

The Nasdaq has now gained 15% since the start of the year, while the S&P 500 and Dow have risen 13% and 12%, respectively.

AI’s ‘Pick and Shovel’ Plays Soared on Friday

FROM 13 hr 33 min ago

Photonics and optics stocks got a big boost Friday in the wake of strong earnings and amid anticipation of a potential setback for overseas competition.

Shares of laser and optical transceiver maker Coherent (COHR) jumped 13%, while Lumentum (LITE) and fiber optic cable maker Corning (GLW) gained 6% and 5%, respectively, propelling them into the ranks of the bigg gainers on the S&P 500 Friday on a solid day for tech stocks. Applied Optoelectronics (AAOI) shares rose 9%, after the company posted better-than-expected sales and profits.

The strong results from Applied Optoelectronics could be taken as a bullish signal for earnings from Nvidia-backed Lumentum and Coherent, which are scheduled to report next week. Analysts are projecting growing sales and profits for both companies on booming AI demand.  

Friday’s rally adds to what’s already been a strong week for the stocks, after Reuters reported Tuesday that the Federal Communications Commission is drafting a rule that could ban imports of new optical transceivers made in China from being sold and installed in data centers in the U.S. The transceivers help transmit data through fiber optic cables in data centers, an industry that Coherent, Applied Optoelectronics, Lumentum, and Corning all play a key role in.

Reuters said the ban, which could go into effect by the end of the year, is intended to prevent data theft, malware, or service disruptions at U.S. data ​centers. The FCC did not respond to an Investopedia request for comment in time for publication.

–Aaron McDade

Nvidia-Backed Lumentum’s Earnings on Deck

FROM 14 hr 38 min ago

One of the hottest stocks in the S&P 500 could be poised for more big moves next week.

Lumentum (LITE), a maker of optical and photonic products that is backed by AI chipmaker (NVDA), is due to release its quarterly results after the closing bell on Tuesday. Based on recent options trading, traders are pricing in a swing in Lumentum’s share price of 13% in either direction by the end of next week.

Though off their May highs, Lumentum shares are up roughly 140% since the start of the year after a string of positive developments, including an investment from Nvidia and bullish comments from analysts and executives about AI-driven demand.

Lumentum, which makes optical components used in data centers, is widely viewed as “pick-and-shovel” AI play, and has seen sales surge as big tech companies invest in building out their AI capacity.

Wall Street analysts are largely bullish on Lumentum stock, with the nine analysts tracked by Visible Alpha split between seven “buy” and two neutral ratings. Their mean price target is just shy of $1,110. The stock was up nearly 7% at around $900 in late trading Friday.

Read the full article here.

–Aaron McDade

Meta Ordered to Pay $942 Million for Social Media Harm

FROM 15 hr 13 min ago

Instagram and Facebook owner Meta Platforms (META) has been ordered to create a $567 million fund to help those who have been harmed by social media, in addition to $375 million in civil penalties stemming from a New Mexico lawsuit.

A jury sided with New Mexico’s attorney general back in March, after the state brought a lawsuit against Meta that accused it of inadequately protecting children in the state from a range of risks from using its apps.

The case is one of many facing Meta and other social media giants that have alleged a failure to protect children.

Meta stock was little-changed Friday afternoon but has lost about 10% of its value since the start of the year, trailing the performance of other tech giants amid concerns about the company’s massive spending on AI. Shares dropped 8% last week on the day after Meta released weak earnings and a disappointing outlook.

–Aaron McDade

SpaceX Stock Surges to Close Out a Wild Week of Trading

FROM 16 hr 9 min ago

Shares of SpaceX are climbing, poised to lock down a powerful weekly performance. 

SpaceX (SPCX) stock was up 12% recently to around $128, not far off an intraday high that had them within view of their mid-June IPO price of $135 per share. (They haven’t closed above that level since mid-July.) At recent prices, they’d finish the week up nearly 20%, a conclusion that was far from foregone just a few days earlier. 

Investors bid the shares higher ahead of SpaceX’s first-ever quarterly earnings report as a public company, reported Tuesday night, but they dropped them after management’s vision for AI spending looked more aggressive than some hoped for. Worries that the expiration of lock-up agreements that freed up millions of shares for trading have also weighed on the shares. 

But stocks are rising today, lifted by optimism–fueled by the July jobs report that landed this morning–that the Fed may not need to raise interest rates soon. That has pulled the Nasdaq Composite substantially higher, and boosted some risk assets: The Roundhill Magnificent 7 ETF (MAGS) is moving higher, while the PHLX index of chip stocks, or SOX, is up more than 2%. 

– David Marino-Nachison

Berkshire Hathaway Set to Report Results This Weekend

FROM 16 hr 51 min ago

The conglomerate is set to post its earnings Saturday morning, providing fresh insights into Berkshire’s (BRK.A, BRK.B) performance during CEO Greg Abel’s second quarter at the helm.

One big move that took place during the period was Berkshire’s $6.8 billion deal to buy homebuilder Taylor Morrison, a major bet on America’s housing market. Former CEO Warren Buffett publicly cheered the decision, telling CNBC that “Greg did that faster than I could [have] done it, smoother than I could have done it, and I never talked to the CEO. He has launched.”  

Abel has also continued repurchasing Berkshire shares, signaling confidence in their future gains and keeping with Buffet’s longtime playbook on buybacks. The CEO said in an interview earlier this year that he plans to keep doing it “as long as our intrinsic value exceeds the market value.”

While still off their highs around $540 set in May of last year, just before Warren Buffett announced he would be stepping down at the end of 2025, shares of Berkshire Hathaway have gained more than 10% since the start of June. The stock was down 1% in afternoon trading Friday, at around $520.

The stock took a sizable hit after the company last reported earnings in May. But they’ve managed to slightly outperform the broader market since then.

Read the full article here.

–Kara Greenberg

Cloudflare Stock Soars to Record on Strong Earnings

FROM 18 hr 32 min ago

Cloudflare shares are soaring to new highs on the back of a strong second-quarter earnings report.

Shares of Cloudflare (NET) were up 7% at $304 in recent trading, after rising as high as $325 early in Friday’s session. The networking and security services provider said that it earned an adjusted 29 cents per share on a 36% year-over-year jump in revenue to $696.1 million, above estimates compiled by Visible Alpha. 

CEO Matthew Prince said in a release that the company saw “record growth in total paying customers, large customers, and developers on our platform,” as AI adoptions grows. 

“As the web shifts to AI answer engines and agent-driven commerce, we are seeing a fundamental rewrite of the Internet for machine-to-machine traffic,” the CEO wrote.  “Cloudflare sits at the center of this paradigm shift—building the infrastructure, controls, developer tools, and payment rails for the Agentic Internet. The business model of the web is changing, and no company is better positioned than Cloudflare to help define its future.”

Cloudflare’s third-quarter forecasts of $736 million to $737 million in revenue and adjusted EPS of 34 cents also topped consensus projections. The company also boosted its full-year guidance, pegging revenue at between $2.864 billion and $2.87 billion and adjusted EPS of $1.25 to $1.26.

JPMorgan analysts more than doubled their price target to $350 from $145 following the report, writing that the results and outlook “cleared what were already elevated expectations, in our view reinforcing the company’s differentiated position of benefiting from broadening AI tailwinds.”

–Aaron McDade

Here’s Why Doximity Stock Is Flying Today

FROM 19 hr 51 min ago

Shares of Doximity are rocking higher Friday morning. The reason? AI. 

Doximity (DOCS) stock was up nearly 60% at $33 recently, after rising as high as $40 in the opening minutes of the session, after the telehealth company turned in fiscal first-quarter (ended June 30) financial results. The numbers themselves likely weren’t the reason, with quarterly revenues rising 7% year-over-year and and both net income and adjusted EBITDA falling. 

Instead, look to comments made on last night’s conference call by CEO Jeff Tangney about the company’s opportunities using artificial intelligence. “We’re seeing record AI usage while topping the first large-scale independent head-to-head trial of clinical AI vendors,” he said, according to a transcript provided by AlphaSense. 

The company says its AI services are being used more and generating more client engagement, suggesting growth opportunities ahead if not big numbers already in the books; CFO Matthew Sonefelt cited a “nascent but growing AI commercial pipeline” while boosting guidance. 

That contributed to this morning’s big boost. The shares had lost a big chunk of their value in 2026–they finished last night a bit under $21 after closing 2025 above $44. While the move in early trading doesn’t bring them back into the green, they’re now much closer to par.

– David Marino-Nachison

Expectations for Rate-Hike Fall After Jobs Report

FROM 20 hr 17 min ago

The Federal Reserve’s focus on taming inflation, in particular since Kevin Warsh took the helm at the central bank in May, has fueled concerns that rate hikes are imminent. The jobs data released this morning tempered those concerns, at least for now.

Traders are now pricing in just a 40% chance that the Fed will raise its benchmark rate at its mid-September policy meeting, down from 55% likelihood priced in yesterday, according to the CME Group’s FedWatch tool, which forecasts rate hikes based on fed funds futures trading data.

Investors will be anxiously awaiting the release of the consumer price index report, scheduled for next Wednesday, as they look for clues about where interest rates could be headed.

Major Indexes on Track for Biggest Weekly Gains in Months

FROM 21 hr 27 min ago

Stocks have had a strong week, with the Dow and the S&P 500 hitting all-time highs. Sentiment has been boosted by the continued strength of corporate earnings reports, as well as hopes that the U.S. and Iran will make progress on a peace deal.

Entering Friday’s session, the Dow and the S&P 500 have gained 2.7% and 2.9%, respectively. If those gains are sustained, they would mark the best weekly performances for the indexes since the week of April 13.

The Nasdaq Composite, which has faced considerable volatility in recent months amid concerns about an AI bubble, is up 3.8% this week, its biggest gain since the week of May 4.

Stock Futures Point Higher Ahead of Jobs Data

FROM 21 hr 29 min ago

Futures contracts tied to the Dow Jones Industrial Average were up 0.1% recently.

S&P 500 futures rose 0.3%.

Nasdaq 100 futures were up 0.6%.