The S&P 500 and Nasdaq surged over 1.5% on August 3, driven by tech gains and a stronger-than-expected ISM Manufacturing PMI.
US equities opened August with a broad rally, as the S&P 500 rose 1.50% and the Nasdaq climbed 2.13%. The gains were fueled by a rebound in large-cap technology stocks, falling Treasury yields, and a drop in oil prices. Investor sentiment was further supported by the July ISM Manufacturing PMI, which hit 55.6, exceeding the 54.0 estimate and marking the highest reading in over four years.
The ISM report showed new orders at 56.7, signaling continued expansion in the factory sector. This followed a June reading of 53.3 and surpassed consensus expectations. Meanwhile, US construction spending in June dipped 0.1%, missing the 0.2% forecast. The Atlanta Fed’s GDPNow estimate for Q3 growth was revised upward to 6.2% from 5.0%.
Market reaction was positive, with European indices like the FTSE 100 also closing higher. Fed commentary suggested optimism about easing inflation pressures, reinforcing the risk-on tone.