Stock Market Today: S&P 500, Nasdaq Head for 7th Straight Gains; Dow set to Open Up; Nasdaq, Walmart, Tesla, More Movers

The S&P 500 is on track to snap a four-week losing streak as that index and the Nasdaq chase their seventh straight day of gains. All three of the major U.S. benchmarks are poised to notch their best week in percentage terms since late 2023, amid a sharp reversal in sentiment and marching recovery following a selloff that rocked global markets to start August.

Oil prices were slipping after a volatile week. Brent crude was down 0.2% at $80.91 a barrel while WTI was 0.3% lower at $77.95 a barrel, though both remain up more than 2% on week.

Concerns around a U.S. recession have calmed, aiding crude oil bulls, though the production side of the U.S. economy continues to face headwinds, said Michael Brown, senior research strategist at Pepperstone.

Lingering geopolitical risk is also helping keep a floor under crude prices, as the market continues to await a potential Iranian response to the assassination in Tehran of a Hamas leader, Brown said in a note.

The potential response is likely denting the appetite of investors to take on significant short positions, particularly ahead of the weekend, though geopolitical risk can only underpin crude for so long, with a significant pickup in global demand needed to sustain a rally, Brown added.

U.S. stock futures chased another day of gains on Friday amid the best week for the market so far this year. Signs of a strong consumer in retail sales data and Walmart’s earnings have offset recession fears that rocked stocks earlier this month.

Futures for the Dow Jones Industrial Average advanced 45 points, or 0.1%, after the index rose 554 points on Thursday to finish at 40,563. S&P 500 futures gained 0.1% with contracts tracking the tech-heavy Nasdaq up 0.3%. The yield on the benchmark 10-year U.S. Treasury note hovered below 3.91%.

The S&P 500 is on track to snap a four-week losing streak as that index and the Nasdaq chase their seventh straight day of gains. All three of the major U.S. benchmarks are poised to notch their best week in percentage terms since late 2023, amid a sharp reversal in sentiment and marching recovery following a selloff that rocked global markets to start August.

“Markets are basking in their own sun-kissed bullish August holiday mood now just 9 days after being in a deep freeze of pessimism,” wrote Jim Reid, a strategist at Deutsche Bank. “It’s been one of the more remarkable turnarounds in recent memory, not because it wasn’t justified to some degree but because it has happened so quickly.”

While the last U.S. jobs report had investors fearing an unavoidable recession, this week ushered in an about-face. Strong U.S. retail sales data and standout earnings from Walmart on Thursday allayed concerns around the strength of the consumer and the economy more broadly. Better-than-expected weekly jobless claims only helped matters, with investor sentiment upbeat as economic worries fade and traders continue to see an interest-rate cut from the Federal Reserve as imminent next month.

“The consumer continues to propel the economy forward,” wrote Bill Adams, chief economist for Comerica Bank. “The solid growth of retail sales means the Fed is more likely to cut interest rates a quarter percent at the September decision than a half percent. The Fed will likely signal additional rate cuts are expected if inflation continues to moderate and the unemployment rate holds around four and a quarter percent.”

Stocks are heading into the end of the week on a hot streak with few major market catalysts looming to disrupt the mood, though investors will monitor a preliminary reading of consumer sentiment for August alongside data covering housing starts and building permits for last month.

Chicago Fed President Austan Goolsbee will also deliver public remarks, which could add to the anticipation around Fed Chairman Jerome Powell’s key speech at the Jackson Hole summit next week.